Dow Jones-UBS Commodity Index

The Dow Jones -UBS Commodity Index (DJ -UBSCI, formerly Dow Jones -AIG Commodity Index, DJ AIGCI ) is a commodities index that includes 20 different futures, which are traded on commodity futures exchanges. He was first calculated in 1998 by Dow Jones & Company in the United States.

Concept

The Dow Jones -UBS Commodity Index (DJ -UBSCI ) includes 20 different raw materials, the weighting of each commodity at least 2 percent and a maximum of 15 percent. The share of a commodity sector may not exceed the limit of 33 percent. The rebalancing of the index annually. The main reason for the weight allocation is the liquidity of a futures whose trading volume and the quantity of production.

This is based on the nearest Future. Traded this - except for aluminum, nickel and zinc (all London Metal Exchange, LME) - the U.S. stock exchange New York Mercantile Exchange ( NYSE), Chicago Mercantile Exchange ( CME), Chicago Board of Trade (CBOT ) and ICE Futures U.S.. Due to its design rules and the balanced diversification of DJ UBSCI subject compared to other commodity indices with lower volatility.

The Dow Jones -UBS Commodity Index is regarded as an indicator for the future development of inflation or the cost of development in the industry. He is at a turning point in the commodities market is a good leading indicator for the bond market, as raw materials in their tendency towards the bonds generally have a lead time of three to six months. Between the interest on the bonds and commodity prices is also a close temporal connection.

Correlations of the Dow Jones -UBS Commodity Index with the geometrically weighted U.S. dollar index and the trade-weighted Trade Weighted U.S. Dollar Index can be seen. A falling U.S. dollar is equivalent to inflationary tendencies and tend to rising commodity prices. This is especially true for agricultural commodities and the price of oil.

Composition

The following overview shows the raw materials, their weightings in the index and the exchange on which the futures are traded (as of October 11, 2011 ).

History

Historical Overview

The index was launched on 14 July 1998 under the name Dow Jones -AIG Commodity Index (DJ - AIGCI ). The return statement was until 2 January 1991 to a base value of 100 points.

After an interim high on 16 May 1997 at 128.49 points on the commodity index fell to 26 February 1999 to a low of 74.24 points. Since the peak in 1997, this represents a decrease of 42.2 percent. In the following years, the index was due to a huge demand for raw materials in the People's Republic of China and India sharply. On 15 February 2008, the DJ AIGCI overcame the first time the limit of 200 points. On 3 July 2008 an all-time high was marked during the day with 238.52 points. Since the low of 1999 corresponds to an increase of 221.3 percent.

In the course of the international financial crisis in the U.S. subprime crisis had its origins in 2007, the index began to decline. 2008, the financial crisis had an increasing impact on the real economy. Due to a decline in global demand in the commodity markets were held, primarily from the beginning of the fourth quarter of 2008 strong price declines. On 20 February 2009, the DJ AIGCI fell 101.48 points to its lowest level since 2002. Since the all time high of July 2008, this represents a decrease of 57.5 percent. That is the biggest downfall in the history of the index. The February 20, 2009 marked the end of the descent. From the beginning of 2009, the index was back on the way up.

In January 2009, Dow Jones & Company announced that the Swiss bank UBS has acquired the rights to the index of the American International Group ( AIG). To reflect this change, the index on May 7, 2009 in the Dow Jones -UBS Commodity Index (DJ -UBSCI ) has been renamed.

On 25 April 2011, the index rose to 175.68 points. The February 2009, an increase of 73.1 percent. Was particularly strong rise in the prices of agricultural commodities. Especially meat, cereals, sugar and oils and fats prices rose since mid-2010. Reasons several factors are called (rising world population, growing money supply, speculation on agricultural markets, crop losses due to natural disasters, export restrictions in some countries ). Consequences of high commodity prices are rising inflation and the outbreak of unrest in parts of the world.

Annual development

The table shows the annual high, low and closing levels of the back-calculated to 1991, Dow Jones -UBS Commodity Index.

¹ December 31, 2012

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