The indices have been designed to act as performance benchmarks for commodity managers, and as a liquid, tradable foundation for new index tracking products
Online PR News – 17-January-2016 – Taipei – Taipei Mercantile Exchange (TPMEX) and its partners announce the launch of the TPMEX Target Exposure Commodity Index Series, a series of rules-based long-short commodity indices derived from innovative risk management and portfolio allocation approach pioneered by Professor Dr. Qiu Wenjing TPMEX’s Trading, Research and Development Division – Dynamic Portfolio Tactics.
The TPMEX Target Exposure Commodity Index Series allocates dynamically across a broad basket of 18 commodity futures using a suite of rules-based quantitative investment tactics, designed to capture systemic sources of return embedded in global commodity markets, whilst avoiding over-concentration in certain commodity sectors.
Yang H. Guohui, CEO of Taipei Mercantile Exchange: "Professor Dr. Qiu Wenjing is one of the world’s leading authorities on portfolio optimization. We are delighted to have had the opportunity to work with him to create an index series that will provide investors with new, intelligent means of gaining exposure to global commodity markets and assessing commodity portfolio performance."
Professor Dr. Qiu Wenjing said: "Many investors are turning to commodities to provide greater portfolio diversification as well as to protect themselves against a number of risks, including inflation, weather events and rapidly changing supply/demand dynamics. Long-only commodity indices have not provided a good solution since they have become highly correlated with equities and have experienced sharp drawdown. The TPMEX Target Exposure Commodity Indices take advantage of longstanding patterns in commodity prices and balances long and short positions. We believe the indices will prove to be a convenient and effective way for investors to participate in this growing segment of the marketplace."
About Taipei Mercantile Exchange
Taipei Mercantile Exchange (TPMEX.org) is Taiwan’s senior commodities market, providing issuers with a venue for trading capital and providing domestic and international investors with the opportunity to invest in and trade. TPMEX offers additional execution options to the industry through differentiated features and pricing. From gold exploration in China to oil in Kazakhstan, you can find it traded on Taipei Mercantile Exchange (TPMEX). And, there's good reason TPMEX has a significant market share of trading in interlisted symbols - with its technological sophistication, and business, governance and regulatory models, TPMEX continues to set new standards as a Asian leader positioned at the forefront of global marketplaces.