Jan. 9 (Bloomberg) -- Legal & General Group Plc, the biggest investor in the U.K. stock market, entered the exchange- traded funds business with a commodities index of indexes.
The LGIM Commodity Composite Source ETF that started on the London Stock Exchange last week is being managed by Source Investment Management Ltd. and is meant to mirror returns of up to four bank commodity indexes, according to Ted Hood, chief executive officer of Source in London. The four bank indexes are the UBS Bloomberg Constant Maturity Commodity Index, the Barclays Capital Commodity Index Pure Beta Total Return Index, Citigroup Inc.’s Citi CUBES Index Total Return and J.P. Morgan Chase & Co.’s JPMCCI Ex-Front Month Energy Light Total Return Index.
“We expect we’ll raise a few hundred million dollars in the first half of the year,” Hood said. It is the first ETF in commodities made up of several indexes, he said.
--Editors: Claudia Carpenter, Dan Weeks
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