S&P Indices Launches Risk Control Versions of the S&P GSCI, Dynamic Roll Index

NEW YORK, Dec. 1, 2011 /PRNewswire/ -- S&P Indices announced today the launch of the S&P Commodities Risk Control Index Series, bringing its popular risk control methodology to its widely followed family of commodity indices.

The S&P Commodities Risk Control Index Series is designed with a focus on liquidity and with the goal of supporting investment products such as index funds, index portfolios, and index futures and options. As part of this index series, the S&P GSCI Risk Control Indices and the S&P GSCI Dynamic Roll Risk Control Indices were launched today, each with four volatility levels: 5%, 8%, 10%, and 12%.

"The S&P Commodities Risk Control Indices are designed for those investors who are interested in gaining exposure to the commodity asset class, but are concerned about high volatility," says Alka Banerjee, Vice President at S&P Indices. "By integrating a volatility control measure, this index series offers a new level of innovation for investors by providing access to the commodities market while seeking to control risk."

To create each member of this index series, the S&P risk control framework is applied to the existing S&P index, yielding a new product that seeks to provide greater stability and control over the level of risk associated with the index. The methodology controls the level of risk by varying exposure to an underlying index based on systematic rules. By establishing a specific volatility target and managing the risk relative to the target, this framework controls the level of risk.  This methodology is similar to the one used for equity risk-control indices.

The S&P GSCI is widely recognized as a leading measure of general price movements and inflation in the world economy.  It provides investors with a publicly available benchmark for investment performance in the commodity markets. The S&P GSCI Dynamic Roll Index is an enhanced version of the S&P GSCI that is designed for investors seeking long only exposure to the commodity market but with the desire to reduce the potential negative impact of contango on roll returns.

For more information, please visit: www.spgsci.standardandpoors.com.

About S&P Indices

S&P Indices, a leading brand of the McGraw-Hill Companies (NYSE:MHP), maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.25 trillion is directly indexed to Standard & Poor's family of indices, which includes the S&P 500, the world's most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry's most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit: www.standardandpoors.com/indices.

It is not possible to invest directly in an index.  S&P Indices does not sponsor, endorse, sell or promote any S&P index-based investment product.  This document does not constitute an offer of services in jurisdictions where S&P Indices or its affiliates do not have the necessary licenses.  Standard & Poor's receives compensation in connection with licensing its indices to third parties.

SOURCE S&P Indices

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED