This new ETF or tracker listed today on Euronext Paris, is a unique opportunity for European investors to track a benchmark, the Reuters/Jefferies CRB Index, designed to provide timely and accurate representation of a long-only, broadly diversified investment in commodities through a transparent calculation methodology. The CRB Index, first-published in 1957, was renamed the Reuters/Jefferies CRB Index in 2005 when it underwent its tenth and most recent revision - as the collaborative effort of Reuters, the global information company, and Jefferies Financial Products, LLC - to maintain its continued accurate representation of modern commodity markets.
Marianne Demarchi, Director of Business Development, Strategy & Products, Euronext, comments, “We are delighted to welcome our first tracker on a commodities index, which will further diversify our range of trackers, enabling investors to gain exposure to a continuously traded asset class that was previously difficult to access."
“Commodities as an asset class possess several key characteristics that are very attractive for investors over sustained periods, in terms of portfolio diversification and improving key performance measures.” Says Isabelle Bourcier, ETF Global co-ordinator for Lyxor AM. In addition to the compelling strategic attributes (positive expected returns : average returns comparable to the return on equities, protection against inflation, portfolio diversification) of the asset class that have persisted across multiple business cycles, investment capital flows into commodities have increased dramatically in the past several years as the result of more recent tactical drivers. Those tactical drivers include:
- increased global demand for raw materials fueled by emerging market and Asian demand,
- supply constraints resulting from prolonged underinvestment in commodity producing infrastructure,
- geopolitical uncertainty and extreme weather events,
- macroeconomic considerations including concern of rising inflation and threat of US dollar weakness,
- heightened media coverage and investor awareness of commodities,
- development of new investment vehicles to accommodate capital inflows.
| Legal form | French mutual fund (FCP) UCITs I
& III compliant |
| Currency | Euro |
| First Quotation | 1st February 2006 |
| Market: | Eurolist of Euronext – NextTrack
Segment |
| Benchmark Index | Reuters/Jefferies CRB index
(Global index including 19 commodities – Total Return index calculated
in USD) – (Reuters .CRBTR) |
| ISIN Code | FR0010270033 |
| Mnémonique Code | CRB |
| Front/back-end load* | 0 % |
| Management fees | 0.35 % including VAT / year |
| Eligible for SRD | Yes |
| (Deferred
Settlement Service) |
|
| * No such fees are
due to the asset management company on secondary trading activities. |
|
Lyxor ETF Commodities CRB (Reuters/Jefferies CRB Index) was approved by the French AMF (Financial Markets Authority) on 10/01/2006 under the number. The entire prospectus is available on request or can be downloaded from www.lyxoretf.com.
