Caixin Insight, Gresham Investment Management to Launch China Commodity Indexes
Caixin Insight has announced that it has reached full-scale strategic cooperation with globally renowned commodity trading fund Gresham Investment Management.
By combining Caixin’s notable advantages in research and data about China’s financial markets with Gresham’s professional experience in global commodity investment management, this strategic cooperation aims to create a series of Chinese commodity indexes.
China, as both the biggest producer and consumer of many commodities worldwide, has been attracting growing attention from global investors. But until now, a domestic commodity index is far from well-established.
The Commodity Index developed by Caixin Insight and Gresham employs a systematic, disciplined approach to portfolio construction and commodity selection, and covers the entire Chinese commodity futures market. The index emphasizes Chinese-only production of each commodity to ensure the economic relevance of those commodities to the Chinese economy. It also takes the liquidity of contracts into consideration to accommodate large-scale investment and to minimize the impact on performance of market inefficiencies that can arise in less liquid markets.
The China Commodity Index Series includes the Chinese Commodity Index (CCI), the Chinese Commodity Index with Factor-Based Interim Rebalancing (CCFI), the Chinese Commodity Long-Bias Index (CCLBI) and the Chinese Commodity Long-Short Index (CCLSI). The Commodity Index is intended to be a benchmark for the Chinese commodity futures market, which will provide investors, both foreign and domestic, with an effective, scientific toolset to track and invest in Chinese commodity futures.
“Caixin Insight perceives itself as the builder of China’s financial infrastructure in a new economic era,” said Gao Erji, executive president of Caixin Insight. “Last year, we released the Smart Beta index series for the A-Share market. This time, the strategic cooperation between the two companies and our common goal to develop the China Commodity Index will mutually enhance each other while filling the gaps in the traded index market for Chinese commodity futures. We aim to match the quality of the widely accepted Bloomberg Commodity Index, and create China’s wind vane for the global commodity market and offer investors the best investment strategies.”
“We are honored to cooperate with Caixin Insight in developing the China Commodity Index,” said Alex Gansch, head of global sales and business development of Gresham Investment Management & CEO of Gresham Asia.
“We have about 30 years of profound experience upon global commodity futures investment management, but the Chinese commodity market still has great potential yet to be explored,” Gansch said. “The development path for a global commodity index has been there for years, from the preliminary index to the enhanced index. Our valuable experience with quantitative models and strategies will be applied upon developing the China Commodity Index, subsequently pushing the index into second and even third generation index by international standards, which in turn provides an excess annualized rate of return and lower volatility for investors.
About Caixin Insight Group
Caixin Insight Group was founded by Caixin Media Group’s editor-in-chief and internationally acclaimed journalist Hu Shuli. It is a sister company of Caixin Media (www.caixin.com), the leading financial and business news provider. The company focuses on providing best-in-class Chinese business and financial databases, macroeconomic research, big-data analytics, smart beta indexes and strategy consulting services, with the goal of helping Chinese and global institutions better navigate through the structural economic development, internationalization, capital markets and other important strategic agenda on China.
About Gresham Investment Management LLC
Gresham Investment Management LLC was founded in 1992 by The Falconwood Corporation and has pioneered the management of diversified commodity investment portfolios using commodity futures. Our Tangible Asset Program® (TAP®) began trading in January 1987 and predates both the S&P Goldman Sachs and Dow Jones UBS Commodity Indices. As of July 2017, Gresham manages in excess of $7.2 billion for a variety of clients, including Public and Corporate Pension Funds, Endowments, Corporations, Health Systems, Insurance Companies, Pooled Investment Vehicles, other Investment Advisors, and Sovereign Wealth Funds, based in the Americas, Europe, Asia and the Middle East.
Gresham has a highly experienced team of investment professionals with the Gresham senior management team averaging over 30 years of investment experience trading commodities.
Gresham is registered as an Investment Adviser with the Securities and Exchange Commission, a Commodity Pool Operator and Commodity Trading Advisor with the Commodity Futures Trading Commission, and is a member of the National Futures Association and the Futures Industry Association.