Barclays Capital has launched a new commodity index that will exploit the growth and demand for commodities.
The Commodities Out-Performance Roll Adjusted Liquid Strategy Index is looking to give investors exposure to 12 individual liquid commodities based on fundamental and technical analysis. It will also aiming to generate alpha in “differing market cycles including stagnant or falling markets utilizing a long-short strategy,” according to the bank.
“The price appreciation that the commodity markets has seen is based on strong fundamental factors such as, rapid growth in emerging economies and sustained demand from developed countries versus the numerous constraints that continue to hamper supply growth,” said Kevin Norrish, director of commodities research at Barclays Capital. “Consequently, commodity prices will continue to face upward pressure.”
Barclays will provide data, analytics and support for these indexes.