S&P Dow Jones Indices reveals 2014 weights for the S&P GSCI®

S&P Dow Jones Indices has released the composition and weights for the 2014 S&P GSCI®, a world production-weighted commodity index which next year will be composed of 24 exchange-traded futures contracts on physical commodities across five sectors including: energy, industrial metals, precious metals, agricultural and livestock

The Asset 8 Nov 2013

S&P Dow Jones Indices has released the composition and weights for the 2014 S&P GSCI(R), a world production-weighted commodity index which next year will be composed of 24 exchange-traded futures contracts on physical commodities across five sectors including: energy, industrial metals, precious metals, agricultural and livestock.

There will be no substantive modifications or new contracts added to or removed from the S&P GSCI for 2014. The weights of the 2013 S&P GSCI(R) along with the 2014 target weights are provided in the tables below. The 2014 weights become effective with the January 2014 roll period.

S&P Dow Jones Indices also announced that the investment support level (ISL) will increase slightly to US$240 billion, from US$230 billion, effective January 2014. The ISL is the level of investment in the S&P GSCI and other commodity indices estimated to support adequate liquidity based on trading volumes. The ISL reflects a realistic estimate of the general level of investment in the S&P GSCI and other commodity indices.

Due to the impending contract change of gas oil to low sulfur gas oil, the following changes will be considered:

* Starting with the December 2013 S&P GSCI(R) Dynamic Roll roll-in contract selection process, the December 2015 gas oil contract will not be considered until further notice, as the last available futures contract for trade is currently the January 2015 contract.

* Gas oil will be replaced by low sulfur gas oil over two consecutive monthly roll periods during the 2014 calendar year. Low sulfur gas oil will assume the full weight of Gas Oil in two equal steps over the two monthly roll periods. S&P Dow Jones Indices will monitor the volume trend and the change will be announced one month in advance.

* The impending contract switch will not begin earlier than the March 2014 roll period and will not be implemented later than the September 2014 roll period. The changes will be specifically detailed among all S&P GSCI(R) index families.

* Changes related to gas oil and low sulfur gas oil is subject to revision by S&P Dow Jones Indices if market conditions dictate.

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