Merrill Lynch introduces biofuels indices
Merrill Lynch introduced on Monday two biofuels indices designed to offer investors exposure to the fast-growing biofuels market.
The MLCX Biofuels Index weights commodities according to production levels and calorific potential, in order to reflect their economic value. It contains seven commodities commonly used as biofuels feedstock: sugar, corn, soybeans, barley, rapeseed, canola and soybean oil.
The MLCX Biofuels Plus Index adds gasoline and diesel to the commodities in the MLCX Biofuels Index. The MLCX Biofuels Plus Index reflects how current technology and infrastructure is more geared to blending biofuels with conventional fossil fuels than to offering a pure biofuel alternative.
“Our indices have been carefully designed to mitigate the negative roll returns inherent to many agricultural commodities markets,” said Francisco Blanch, Head of Global Commodity Research at Merrill Lynch. “They also offer additional returns by overweighting crops that produce the most energy in biofuel production, notably sugar and soybeans.” (people.com.cn)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.