Tuesday 5 July 2011

Commodity index rebalancing in 2011

Reuters Africa (Jan. 6, 2011) | catalogue capital bought into in products will boot off their annual rebalancing workout this week, supplementing risk to under-exposed markets such as natural gas and paring back from the overly weighted agriculture sector, data from investment banks displayed.
The Dow Jones-UBS .DJUBS and the SPGSCI .SPGSCI indexes, which order an approximated $200 billion of passive investment in commodities, normally adjust their weightings in the first two weeks of January, based on their equation for dividing allocations between futures markets.
According to Commodity Tips the foremost commodity indicators rebalance their respective asset weightings once a year (or occasionally more) and with that arrives a mass dose of buying and trading. The 2009 rebalancing is anticipated to start one time this week.

The rebalancing itself will not change the worth of any Index Security and no activity is needed on the part of Security Holders. The rebalancing does not sway the forty-two categories of Individual Securities (comprising twenty-three categories of Classic one-by-one Securities and nineteen categories of Forward Individual Securities). The schedule for the rebalancing of the catalogue Securities is as follows:

Thursday 6 January 2011

The goal number of Micro Securities to be increased/decreased for each commodity in each catalogue Security will be very resolute utilising Thursday’s settlement charges.

Friday 7, Monday 10, Tuesday 11, Wednesday 12, Thursday 13 2011

At the starting of each of these days, the number of Micro Securities will be modified, based on the aimed at alterations and the genuine preceding day’s concluding prices.

Thursday 13 January 2011

The final number of Micro Securities in each catalogue Security following the rebalancing will be announced prior to the opening of swapping. (Note (Stockholm: NOTE.ST – news) , although, if there is a Market disturbance happening for a commodity on Wednesday 12 January 2011 then the final number of Micro Securities for any catalogue Security containing that commodity will not be very resolute until the next Business Day which is not a Market Disruption Day).

The adhered table shows (i) the living weighting of each commodity for the Classic Securities and the ahead Securities, as measured by the effective weight at present commodity prices in the ETFS All Commodities Index Security (for the Classic Securities) or the ETFS Forward All products catalogue Security (for the ahead Securities), and (ii) the aimed at new weighting of each commodity for the Classic Securities and the Forward Securities, based on the Commodity Index Percentage to be utilised in the rebalancing of DJ-UBSCISM (Classic Securities) or DJ-UBSCI-F3SM .

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