SocGen launches new commodity index

RIDING on increased investment interest in commodities, Societe Generale has launched a new commodity index that changes its mix of products monthly based on seasonal factors.

The Societe Generale Seasonal Factor Commodity Index, which the bank started introducing to clients a month ago, has been very well received, the bank said.

"Seasonality is one of the most powerful drivers of commodity returns," said Mark Keenan, head of commodities research in Asia at Societe Generale. These can range from weather seasons which can increase demand for energy, to the start of Indian festivals that boost demand for gold.