Standard & Poor's has released the S&P GSCI UCITS Index, offering a UCITS-compliant version which...
Standard & Poor's has released the S&P GSCI UCITS Index, offering a UCITS-compliant version which caps sector weights at 35% on an annual basis.
UCITS-compliant funds can be freely marketed to the public in all 30 of the countries in the European Economic Area. The UCITS III directive, which was implemented in 2002, applies to funds marketed to retail investors, such as ETFs.
S&P director of commodity indices Michael McGlone says: "There has been more client demand for products which are UCITS compliant. By making the index UCITS compliant, we have opened up a larger space for investment opportunity."
He explains that the move to make the index UCITS compliant largely concerns the sector weightings of the index, as the regulatory framework ensures that each sector cannot have more than 35% exposure.
He adds: "This is a question of timing - we have decided to cap the sector weights annually."
At present, there is a range of exchange-traded products including the EasyETF GSCI ETF and the iShares S&P GSCI Commodity Indexed Trust which track the benchmark, although a S&P spokesperson says the UCITS compliant version has received "a strong amount of interest from product providers."
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