Bloomberg introduces BERY sector indexes for commodity sector exposure

NEW YORK, June 18, 2024 /PRNewswire/ — Bloomberg today announced the launch of BERY Sector Indexes, an innovative addition to the Bloomberg Enhanced Roll Yield (BERY) Index designed to provide investors with greater exposure to commodity market sectors.

In the face of market volatility and elevated levels of inflation, commodities have become a resilient asset class, offering investors a hedge against uncertainty and a source of positive returns. Building on the success of the BERY index launched in June 2021BERY Sectors indices extend these benefits to thirteen individual sectors within the Bloomberg Enhanced Roll Yield: Energy, Petroleum, Industrial Metals, Precious Metals, All Metals, Energy and Precious Metals, Cereals, Cereals and Derived Products, Soft Products, Agriculture, Animal Husbandry , Agriculture and animal husbandry and BERY, ex-agriculture and animal husbandry.

“As inflation concerns continue to impact investment strategies, commodities have become a key component of hedge portfolios,” he said Jigna GibbDirector of Merchandise and Crypto Index product from Bloomberg Index Services Limited. “With a three-year history, BERY’s sector indexes not only offer investors exposure to commodity sectors, but also provide a powerful tool for preserving purchasing power and accounting for economic factors impacting portfolios.”

The BERY Index is a broad-based, long-only commodity index that incorporates aspects of risk premium strategy. The index reduces the traditional trade-off between smoothness and performance, and ultimately aims to ensure high efficiency and mitigate the impact of negative carryover and reduce roll congestion. The thirteen new Bloomberg BERY sector indexes incorporate key features of the parent BERY index strategy, including:

• Premium Curve: Allocates to the first four most liquid futures contracts, optimizing exposure and performance.
• Transfer Premium: It aims to capture the carry premium by providing greater exposure to commodities that trade in backwardation as opposed to contango by tipping the scales.
• A wide, suitable universe: Expands the eligible commodity mix to include additional components such as feeder cattle and tin, providing investors with more diversified portfolio options.

Bloomberg provides an independent and transparent approach to indexing to clients around the world. Bloomberg Terminal customers can access the indices at {IN }, and the relevant fact sheets, methodology and research for the new indices are available on the Bloomberg Commodities Indices Publications website.

About Bloomberg Index Services Limited
Bloomberg’s index team has a proven track record of creating industry-leading and customized indices across a variety of asset classes, including best-in-class fixed income and commodity indices. Bloomberg Index Services Limited (BISL) takes an innovative approach to providing strategic benchmarks that help market participants meet their evolving needs. As an integral part of Bloomberg, BISL has access to a broad range of trusted data and robust technology for computation, analytics and workflow automation, as well as distribution capabilities that can help increase the visibility of our clients’ products.

About Bloomberg
Bloomberg is a global leader in business and financial information, providing trusted data, news and insights that keep markets transparent, efficient and honest. The company helps connect influential communities in the global financial ecosystem through robust technology solutions that enable our customers to make more informed decisions and foster greater collaboration. For more information, visit bloomberg.com/company or request a demo.

SOURCE Bloomberg