“Many investors are turning to commodities to provide greater portfolio diversification as well as to protect themselves against a number of risks, including inflation, weather events and rapidly changing supply/demand dynamics,” Professor Mulvey said in the press release.
This new group of indices is part of the growing trend of “enhanced” rules-based indexing that mimics active management styles – the indices try to replicate tactics used by quantitative commodity managers, or CTAs.
“I expect to continue to work with academia,” Jonathan Horton, FTSE president of North America, said on a call, adding that they are reaching out to more “academics and money managers to bring innovative strategies to the market.”
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Max Chen contributed to this article.