 |
Actively manage your Commodity Subscriptions:
Now choose weekly, monthly or both
Help us improve our communications with you. You can now subscribe to this Weekly Commodity Update in addition to our monthly newsletter.
Manage your subscriptions now. |
|
  |
October 14, 2011
Weekly Commodity Update
Recap of Our Constant Maturity Commodity Benchmark: CMCI
Week Ending: Friday, October 14, 2011
|
| Key Points |
Weekly Summary
(10/8 - 10/14) |
Commodities rallied last week, led by agriculture and Brent crude oil. |
CMCI Performance
|
UBS Bloomberg Constant Maturity Commodity Index (CMCI) returned 4.27% |
Roll Impact on Performance
(Contango vs. Backwardation) |
CMCI: -0.07%
DJUBS: -1.25%
S&P GSCI: 0.09%
|
|
| |
Comparative Index Performance
As of Friday, October 14, 2011
|
| |
Total Return |
Impact of Roll Yield |
| |
Week
(10/8 - 10/14) |
YTD
|
Week
(10/8 - 10/14) |
YTD
|
| CMCI |
4.27% |
-3.88% |
-0.07% |
-0.52% |
| DJUBS |
4.51% |
-8.68% |
-1.25% |
-4.90% |
| S&P GSCI |
5.26% |
-2.00% |
0.09% |
-2.99% |
|
| |
Shape of Front Month
Commodity Futures Curves
As of Friday, October 14, 2011
|
| Highlights: Brent's backwardation widened during the week, while natural gas contango narrowed. |
| Commodity |
Shape of Curve |
| Aluminum |
Steady Contango |
| Brent Crude Oil |
Backwardation |
| Coffee |
Congango |
| Copper |
Mild Contango |
| Corn |
Contango |
| Cotton |
Backwardation |
| Gold |
Mild Contango |
| Lead |
Steady Contango |
| Lean Hogs |
Backwardation to Contango to Backwardation |
| Live Cattle |
Contango |
| Natural Gas |
Steep Contango |
| Sugar |
Steep Backwardation |
| Silver |
Mild Contango |
| Soybeans |
Contango to Backwardation |
| Wheat |
Steep Contango |
| WTI Crude Oil |
Mild Contango |
| Zinc |
Steady Contango |
For more information on commodity futures, please visit THE CONTANGO REPORT. |
| |
Related Information
Learn about Van Eck's Commodity Solutions4
Visit vaneck.com for More Index Details
|
|
|
FINANCIAL PROFESSIONALS ONLY
Not for use with the general public. This email is for financial professional use only and has not been reviewed by FINRA. It was prepared by Van Eck solely for financial professionals and not for distribution to the general public. If this email is used in oral or written form by a solicitor or any representative with the general public, the financial professional will be held personally responsible to assure that such use complies with the filing and other requirements of applicable securities laws of any applicable countries, and that current offering documents of the fund and current supporting data are furnished where required.
1CMCI's live inception date is January 1 2007. All performance information presented for the Index covering the period prior to January 1, 2007 is based on hypothetical, back-tested data. Prior to such date, the Index was not calculated in real time by an independent calculation agent. Hypothetical, back-tested performance has inherent limitations and is not indicative of future results. No representation is being made that any investment will achieve performance similar to that shown. In addition, hypothetical performance does not involve financial risk, and no hypothetical performance can completely account for the impact of financial risk (such as the ability to withstand losses) or other factors in actual trading.
3All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index's performance is not illustrative of a fund's performance. Indices are not securities in which investments can be made. Results reflect past performance and do not guarantee future results. This performance is historical and is provided to illustrate market trends. The DJUBS is composed of futures contracts on 19 physical commodities. The S&P GSCI is composed of futures contracts on 24 physical commodities, with high energy concentration and limited diversification. Both indices buy and sell short-term (i.e., "front month") futures contracts. In comparison, the UBS CMCI is composed of futures contracts on 27 physical commodities and buys and sells contracts with maturities of three months and, for some commodities, up to three years.
4Please note that Van Eck Securities Corporation offers the Van Eck CM Commodity Index Fund ("Fund") that invest in the asset class included in this email.
If this material is distributed outside of your firm, you are responsible for ensuring that the distribution complies with applicable laws, rules and regulations.
UBS and Bloomberg own or exclusively license, solely or jointly as agreed between them all proprietary rights with respect to the Index. In no way do UBS or Bloomberg sponsor or endorse, nor are they otherwise involved in the issuance and offering of the Fund nor do either of them make any representation or warranty, express or implied, to the holders of the Fund or any member of the public regarding the advisability of investing in the Fund or commodities generally or in futures particularly, or as to results to be obtained from the use of the Index or from the Fund.
You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. Commodities are assets that have tangible properties, such as oil, metals, and agriculture. Commodities and commodity-linked derivatives may be affected by overall market movements and other factors that affect the value of a particular industry or commodity such as weather, disease, embargos or political or regulatory developments. The value of a commodity-linked derivative is generally based on price movements of a commodity, a commodity futures contract, a commodity index or other economic variables based on the commodity markets. Derivatives use leverage, which may exaggerate a loss. The Fund is subject to the risks associated with its investments in commodity-linked derivatives, risks of investing in wholly owned subsidiary, risk of tracking error, risks of aggressive investment techniques, leverage risk, derivatives risks, counterparty risks, non-diversification risk, credit risk, concentration risk and market risk. The use of commodity-linked derivatives such as swaps, commodity-linked structured notes and futures entails substantial risks, including risk of loss of a significant portion of their principal value, lack of a secondary market, increased volatility, correlation risk, liquidity risk, interest-rate risk, market risk, credit risk, valuation risk and tax risk. Gains and losses from speculative positions in derivatives may be much greater than the derivative's cost. At any time, the risk of loss of any individual security held by the Fund could be significantly higher than 50% of the security's value. Investment in commodity markets may not be suitable for all investors. The Fund's investment in commodity-linked derivative instruments may subject the fund to greater volatility than investment in traditional securities. For a description of these and other risk considerations, please refer to the Fund's prospectuses, which should be read carefully before you invest. Again, the Fund offers investors exposure to the broad commodity markets, currently by investing in a combination of commodity-linked structured notes and swaps. The Fund has obtained a private letter ruling from the IRS confirming that the income produced by certain types of structured notes constitutes "qualifying income."
Please call 800.826.2333 or visit vaneck.com for performance information current to the most recent month end and for a free prospectus and summary prospectus. An investor should consider the Fund's investment objective, risks, and charges and expenses carefully before investing. The prospectus and summary prospectus contains this and other information. Please read it carefully before investing.
Van Eck Securities Corporation
Distributor
335 Madison Avenue
New York, NY 10017
|
|