Bloomberg today announced the launch of BERY Sectors Indices, an innovative addition to the Bloomberg Enhanced Roll Yield (BERY) index, designed to provide investors with enhanced exposure to commodities market sectors.
In the midst of market volatility and elevated inflation levels, commodities have emerged as a resilient asset class, offering investors a hedge against uncertainty and a source of positive returns. Building upon the success of the BERY Index launched in June 2021, the BERY Sectors indices extends those benefits to the thirteen individual sectors within the Bloomberg Enhanced Roll Yield: Energy, Petroleum, Industrial Metals, Precious Metals, All Metals, Energy & Precious Metals, Grains, Grains plus Derivatives, Softs, Agriculture, Livestock, Agriculture & Livestock and BERY ex-Agriculture & Livestock.
“As inflation concerns continue to influence investment strategies, commodities have emerged as a critical component for hedging portfolios,” said Jigna Gibb, Head of Commodities and Crypto Index Product at Bloomberg Index Services Limited. “With three years of live history the BERY Sectors Indices not only offer investors exposure to commodity sectors, but also provide a powerful tool for preserving purchasing power and accounting for economic factors that impact portfolios.”
The BERY index is a broad-based, long-only commodity benchmark that incorporates aspects of risk-premia strategies. The index diminishes the traditional trade-off between liquidity and performance, and ultimately seeks to provide high capacity and mitigate the impact of negative carry and reduce roll congestion. The thirteen new Bloomberg BERY Sectors Indices embed the key features of the parent BERY index strategy, including:
- Curve Premium: Allocates up to the first four futures contracts with the deepest liquidity, optimizing exposure and performance.
- Carry Premium: Seeks to capture carry premium by providing greater exposure to commodities that trade in backwardation as opposed to contango through weight tilting.
- Wide Eligible Universe: Expands the eligible universe of commodities to include additional components such as Feeder Cattle and Tin, providing investors with more diversified portfolio options.
Bloomberg provides an independent, transparent approach to indexing for customers across the globe. Bloomberg Terminal clients can access the indices at {IN <GO>} and relevant fact sheets, methodology and research for the new indices are available on the Bloomberg Commodities Indices Publications page.
About Bloomberg Index Services Limited
Bloomberg’s index team has a proven track record in creating industry-leading and bespoke indices across asset classes, including their flagship fixed income, commodity and equity indices. Bloomberg Index Services Limited (BISL) takes an innovative approach to delivering strategic benchmarks that help market participants address their evolving investment needs. The indices, which are seamlessly integrated with other Bloomberg solutions, draw on a comprehensive range of trusted data and reliable technology for calculations, analytics and workflow automation, along with distribution capabilities that can help amplify the visibility of our customers’ products.
About Bloomberg
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Media Contact
Casey Sheets, +1 212 617 6463, csheets8@bloomberg.net
