Sometimes you just need a change of scenery.
The Bloomberg Commodity Index, or BCOM, was taken on by Bloomberg in a partnership with UBS last July and now has several months as its new administrator. The index, previously known as the Dow Jones-UBS Commodity Index, is traded as a futures contract at CME Group and Eurex, as well as as an ETF, but it has much more potential ahead of it, said Alan Campbell, global product manager, head of business development of Bloomberg Indices.
“The capability is already there to trade the product,” Campbell told John Lothian News. “We need to do a job in educating people on the different types of access points.”
The BCOM Index is composed of 22 exchange-traded futures and has more than $60 billion benchmarked to it. Global markets trade a variety of versions of the family of indexes such as: sector indexes, indexes that exclude certain securities, and also cap exposures to certain components of the index, which allows firms to meet fund requirements and restrictions related to UCITS funds.
Campbell said the firm is looking to do more than just managing and publishing the data. It launched BCOM tables and charts and a month-end report for customers. The value there, is that clients can use such reports in their monthly reports to customers. Bloomberg News is also providing more coverage of the commodity index space as well.
Campbell said the potential for the commodity index family is great, as more funds and investment portfolios look for diversity from classic 60/40 stock and bond strategies.
“We found that people have an intrinsic interest in commodities,” he said. “We plan to educate investors on commodities, create a better client experience similar to that enjoyed by equity and fixed income investors.”
Bloomberg is now working with CME on various roundtable events that focus on commodities, and produce new insights into that space for investors.
“What we really want to focus on is helping people interrogate the information, understand what it means in the context of alternative investments,” he said. “So we’re focused on helping people customize indices and integrate into multi-asset portfolios.”