A new index has been launched that is designed to track the prices of commodity and financial futures contracts, hedge funds may be interested to discover.
A new index has been launched that is designed to track the prices of commodity and financial futures contracts, hedge funds may be interested to discover.
Standard and Poor’s has announced the launch of the S&P Dynamic Futures Index (DFI), which it hopes will show the long-term cyclicality of these vehicles.
It offers rules-based exposure over 24 commodity and futures contracts, which it has grouped into roughly 14 sectors.
Michael McGlone, senior director of commodity indices for S&P Indices, claimed that these products will be made more easily tradable as a result.
He said: “With the ability to go long or short sectors, the S&P DFI is designed to capture the economic benefit over long time periods derived from both rising and declining trends within a cross-sector of the futures markets.”
Earlier this month, the CFA Institute and the UK Investment Performance Committee announced that they were issuing a new scheme designed to standardise hedge fund performance reporting.
