France's Lyxor Asset Management will list two exchange-traded funds (ETFs) in London on Thursday, offering investors heavy exposure to soft commodities plus energy, grains and livestock.
Consumption growth and supply tightness have recently sent robusta coffee prices to a nine-year high and cocoa to a four-year high and both markets are seen poised to set fresh peaks.
The ETFs will be linked to the Reuters/Jeffries CRB Index and will be listed on the London Stock Exchange.
"We may be in that point of the cycle where softs outperform hard commodities and energy," Dan Draper, head of UK & Ireland ETFs at Lyxor, told Reuters.
"The CRB index is the oldest commodity index, very broad-based. With the history and the familiarity it is a strong partner for us," Draper said.
The two ETFs made their debut on NYSE Euronext last February. Lyxor, a wholly owned subsidiary of French bank Societe Generale, manages 65 billion euros in total assets.
The Lyxor ETF Commodities CRB will have a 41 percent exposure to soft commodities and 39 percent exposure to energy. Softs, grains and livestocks will have a 67 percent weighting in the second ETF, which will not have any energy exposure.
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