2015 Target Weights for the Bloomberg Commodity Index Announced

Brent Crude Oil makes the largest gain as trading volumes increase

NEW YORK--()--Bloomberg today announced the composition and new target weights for 2015 for the Bloomberg Commodity Index (BCOM). Launched in 1998, BCOM, formerly the Dow Jones-UBS Commodity Index, is a highly liquid, diversified and transparent benchmark for the global commodities market. There will be no new contracts added or removed as a result of the annual reconstitution.

The target weights will be used to determine the Commodity Index Multipliers for 2015. These multipliers, computed once a year on the fourth business day in January, are factors used to express the percentage weights in U.S. dollar-denominated terms when calculating the index.

On an absolute basis, Brent Crude Oil has the largest weight increase in BCOM growing from 6.51% to 7.16%, while Natural Gas and WTI Crude Oil decreased the most from 9.45% to 8.74% and 8.49% to 7.84% respectively. Gold remains the highest weighted commodity in the index increasing its position from 11.5% to 11.9%.

Target weightings of all BCOM components for 2015, as well as their comparative weights in 2014, are provided in the table below:

Group     Commodity   Ticker     2015 Target Weight    

2014 Target Weight

Energy     Natural Gas   NG     8.7397550%     9.4459780%
WTI Crude Oil CL 7.8434950% 8.4888470%
Brent Crude Oil CO 7.1565050% 6.5111530%
ULS Diesel HO 3.7609190% 3.7183830%
Unleaded Gasoline XB 3.6928490% 3.6167190%
              31.19%     31.78%
Grains Corn C 7.2463450% 7.1958200%
Soybeans S 5.6812590% 5.6839430%
Wheat W 3.3276410% 3.3411750%
Soybean Oil BO 2.8129680% 2.8304030%
Soybean Meal SM 2.7453110% 2.6824040%
HRW Wheat KW 1.1705090% 1.2147910%
              22.98%     22.95%
Industrial Metals Copper HG 7.5375780% 7.5083040%
Aluminum LA 4.5931580% 4.7216600%
Zinc LX 2.4041340% 2.3138150%
Nickel LN 2.1193960% 2.0535200%
              16.65%     16.60%
Precious Metals Gold GC 11.9041430% 11.5330580%
Silver SI 4.2760540% 4.1413610%
              16.18%     15.67%
Softs Sugar SB 3.9956530% 3.9559400%
Coffee KC 2.2121760% 2.3198040%
Cotton CT 1.5129990% 1.5784230%
              7.72%     7.85%
Livestock Live Cattle LC 3.3273920% 3.2720630%
Lean Hogs LH 1.9397640% 1.8724410%
              5.27%     5.14%
 

The target weights are determined in accordance with the rules described in the Bloomberg Commodity Index Methodology. The index rules generally account for liquidity and production data in a 2:1 ratio and are subject to the following requirements for diversification and minimum weightings:

  • No single commodity may constitute over 15% of BCOM.
  • No single commodity, together with its derivatives (e.g., WTI Crude Oil and Brent Crude Oil, together with ULS diesel and unleaded gas) may constitute more than 25% of BCOM.
  • No group (e.g., Energy, Precious Metals) may constitute more than 33% of BCOM.

For a more in-depth breakdown of the annual rebalancing and methodology see this overview: http://bit.ly/1wdunDO.

For additional information, terms and conditions and licensing opportunities, please visit www.bloombergindexes.com or type INDEX <GO> on the Bloomberg Professional service.

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