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UBS Asset Management Rolls Out New ETF

Harry Keir Hughes

23 June 2017

has launched a new exchange-traded fund on the London Stock Exchange that combines futures rolling methodology with a commodity benchmark.

The UBS ETFs (IE) Bloomberg Commodity CMCI ‘BCOM-CM’ adds to UBS Asset Management's existing commodities ETF offering.

The new ETF combines advanced futures rolling methodology with the largest commodity benchmark, the firm said in a statement.

BCOM, the preferred benchmark used by investors for diversified commodity investments, is combined with a rolling technique that uses the Constant Maturity Commodity Index indices, known as CMCI, to mitigate the effect of negative roll yield. The combination results in more value for investors, UBS said.

"The CMCI methodology is a rules-based approach, providing enhanced returns by implementing a daily rolling mechanism, which uses up to five different tenor points across different commodities future curves. This has proven advantages when compared to exposure via short term contracts only,” said Andrew Walsh, head of passive and ETF specialist sales in the UK & Ireland. 

UBS Asset Management has been managing passive investments for over 30 years, with total assets under management for passive assets of £199 million ($251 million).