Citigroup (NYSE: C) announced that it has launched a new BRIC commodities index, which will provide investors access to commodity exposure in relation to the consumption of commodities in the four BRIC countries, including Brazil, Russia, India and China.
In its press relapse, Citigroup said that the index will provide access to a basket of commodity futures with weighting based on the consumption of 13 key commodities in proportion to the combined consumption of the four BRIC countries. The new index will be rebalanced annually based on publically available information.
The BRIC commodities index will vary from more traditional indices which monitor commodities by having a lower weighting to energy and having a higher weighting toward products/livestock and base metals, the company added.
The New York-based bank will be launching two versions of the index, the Citi BRIC Commodities Index and the Citi BRIC Enhanced Commodity Index. The regular index will take exposure from the front-end of commodity future curves, similar to widely-known commodities benchmarks, whereas the enhanced index will make use of Citi’s cubes roll enhancement strategy.
