New green commodity index targets biofuels
Bache Commodities Group has launched the Bache Commodity Green Index (BCGI) to offer investors a tool to invest in commodities with a focus on biofuels.
The BCGI comprises two components: the Bache Biofuel Composite and Bache Clear Air Composite. The Bache Biofuel Composite includes agricultural commodities such as corn and sugar used for ethanol production, along with oilseeds used for biodiesel production.
The Bache Biofuels Composite is allocated 65% to products used in ethanol production and 35% to oilseeds. The constituents and weights in the Bache Biofuels Composite will evolve to reflect changes in the mix of commodities used in renewable fuels.
The BCGI has an initial allocation of 60% to the Bache Biofuels Composite and 40% in the Bache Clean Air Composite.
Biofuels are given a larger initial weight in the BCGI because biofuel markets are currently larger and more developed. As more countries adopt carbon emissions caps, the BCGI may change its weighting to reflect the increased focus on carbon and pollution control markets.
Bache Commodities Group is the commodities and financial derivatives business of US-based Prudential Financial, Inc. (PFI). The group has been an active participant in the commodities market for 120 years.
The BCGI comprises two components: the Bache Biofuel Composite and Bache Clear Air Composite. The Bache Biofuel Composite includes agricultural commodities such as corn and sugar used for ethanol production, along with oilseeds used for biodiesel production.
The Bache Biofuels Composite is allocated 65% to products used in ethanol production and 35% to oilseeds. The constituents and weights in the Bache Biofuels Composite will evolve to reflect changes in the mix of commodities used in renewable fuels.
The BCGI has an initial allocation of 60% to the Bache Biofuels Composite and 40% in the Bache Clean Air Composite.
Biofuels are given a larger initial weight in the BCGI because biofuel markets are currently larger and more developed. As more countries adopt carbon emissions caps, the BCGI may change its weighting to reflect the increased focus on carbon and pollution control markets.
Bache Commodities Group is the commodities and financial derivatives business of US-based Prudential Financial, Inc. (PFI). The group has been an active participant in the commodities market for 120 years.
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