Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
 December 11, 2015 - 10:00 AM EST
Print Email Article Font Down Font Up
Bank of America Merrill Lynch Announces Year-end Rebalancing Changes for the Merrill Lynch Commodity Index eXtra℠

Following an annual review in accordance with its rules, the target constituent weights for the BofA Merrill Lynch Commodity Index eXtra (MLCX) will rebalance to the values shown in Table 1 below on December 31, 2015. Similar changes will propagate across the MLCX sub-indices.

Cotton will be removed from MLCX at the December 31 rebalancing, as it does not meet the quantitative criteria for selection and an exception is no longer deemed by the Index Committee to be appropriate. Of the contracts that remain in the index, Brent Crude Oil will decrease the most vs. last year’s target weight (-0.80 percent), and Live Cattle will increase the most (+1.09 percent).

MLCX is designed to provide a liquid, consistent, representative and cost-efficient benchmark for measuring commodity market performance. The index has representation in six key market sectors: Energy, Base Metals, Precious Metals, Grains & Oil Seeds, Livestock, and Soft Commodities & Others.

Table 1: MLCX contract weights

Commodity     2015     2016       Change    
Brent Crude Oil 28.923196% 28.116845% -0.806351%
Gasoil 11.935934% 12.181546% 0.245612%
Gasoline (RBOB) 11.568973% 12.002656% 0.433683%
Wheat 6.243975% 5.832795% -0.411180%
Copper 5.279892% 5.647866% 0.367974%
Crude Oil (WTI) 5.353026% 5.189844% -0.163182%
Corn 5.626604% 5.069962% -0.556642%
Gold 4.237603% 4.677434% 0.439831%
Aluminum 3.071052% 3.716389% 0.645337%
Live Cattle 1.972701% 3.058645% 1.085944%
Soybean Meal 2.865186% 2.560466% -0.304720%
Natural Gas 2.218872% 2.509109% 0.290237%
Sugar 2.528880% 2.467653% -0.061227%
Coffee 1.083545% 1.433921% 0.350376%
Soybean 1.580864% 1.346286% -0.234578%
Zinc 1.004851% 1.272907% 0.268056%
Lean Hogs 1.027299% 1.179683% 0.152384%
Nickel 0.877897% 1.122229% 0.244332%
Silver 0.603848% 0.613764% 0.009916%
Cotton 1.995803% 0.000000% -1.995803%
Source: BofA Merrill Lynch

Table 2: MLCX sector weights

      2015       2016       Change    
Energy 60.000000% 60.000000% 0.000000%
Grains & Oilseeds 16.316628% 14.809509% -1.507119%
Base Metals 10.233692% 11.759391% 1.525699%
Precious Metals 4.841451% 5.291198% 0.449747%
Livestock 3.000000% 4.238328% 1.238328%
Soft Commodities & Others 5.608228% 3.901574% -1.706654%
Source: BofA Merrill Lynch

BofA Merrill Lynch Global Research
The BofA Merrill Lynch Global Research franchise covers over 3,350 stocks and 1,250 credits globally and ranks in the top tier in many external surveys. Most recently, the group was named Top Global Research Firm of 2015 by Institutional Investor magazine; No. 1 in the 2015 Institutional Investor All-America survey; No. 1 in the 2015 Institutional Investor Latin America survey; No. 1 in the Institutional Investor 2015 Emerging EMEA Survey; No. 1 in the 2015 All-Europe Fixed Income survey; No. 2 in the 2015 Institutional Investor All-Asia survey; and No. 2 in the 2015 All-America Fixed Income survey for the fourth consecutive year.

Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 47 million consumer and small business relationships with approximately 4,700 retail financial centers, approximately 16,100 ATMs, and award-winning online banking with 32 million active users and more than 18 million mobile users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a registered broker-dealer and a member of FINRA and SIPC, and, in other jurisdictions, locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.

Visit the Bank of America newsroom for more Bank of America news.

Reporters May Contact:
Melissa Anchan, Bank of America, 1.646.855.3152

Source: Business Wire (December 11, 2015 - 10:00 AM EST)

News by QuoteMedia