NEW YORK, Jan. 28 /PRNewswire/ -- Continuing to offer a wide variety of new and innovative investable commodity indices, Standard & Poor's, the world's leading index provider, announced today the launch of seven single commodity sub-indices of the S&P GSCI Enhanced Index: Brent Crude Oil, Heating Oil, Natural Gas, Chicago Wheat, Corn, Lean Hogs and Live Cattle. These sub-indices are designed to alleviate the impact of negative roll returns – a situation that occurs when the price of the commodity's futures contract is higher than its spot price.
Standard & Poor's also announced that it has licensed BNP Paribas to track the S&P GSCI Enhanced sub-indices. BNP Paribas is the Euro-zone's leading bank in terms of deposits, and a global-scale European leader in financial services.
"With this launch, S&P Indices now offers all of the commodities with enhanced roll schedules from the S&P GSCI Enhanced Index as stand alone mono-indices," says Michael McGlone, Senior Director of Commodity Indexing at S&P Indices and author of the Market Attributes Commodities posted monthly to www.spgsci.standardandpoors.com. "The solid performance and robust methodology of the S&P GSCI Enhanced Index is certainly attracting attention."
The S&P GSCI Enhanced Index is calculated on a basis similar to that of the S&P GSCI, with modifications made in order to apply certain dynamic, timing, and seasonal rolling rules. Dynamic rolling rules are designed to yield enhanced returns when the WTI Crude Oil and Brent Crude Oil futures markets demonstrate wide contango conditions. Contract roll schedules are seasonally altered for Heating Oil, Natural Gas, Chicago Wheat, Corn, Lean Hogs, and Live Cattle to alleviate potential rolling expenses and to reflect the seasonal demand for the commodities.
The S&P GSCI is the most closely followed benchmark for investment performance in the commodity markets. For more information on the S&P GSCI, please visit: www.spgsci.standardandpoors.com.
About S&P Indices
S&P Indices, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1 trillion is directly indexed to Standard & Poor's family of indices, which includes the S&P 500, the world's most followed stock market index, the S&P Global 1200, a composite index comprised of seven regional and country headline indices, the S&P Global BMI, an index with approximately 11,000 constituents, and the S&P GSCI, the industry's most closely watched commodities index. For more information, please visit www.standardandpoors.com/indices.
About Standard & Poor's
Standard & Poor's, a subsidiary of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for nearly 150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com
Standard & Poor's does not sponsor, endorse, sell or promote any S&P index-based investment product.
SOURCE Standard & Poor's