SP to BUY The GCSI

Discussion in 'Index Futures' started by ballsofgold, Feb 6, 2007.

  1. Standard & Poor's to Acquire Goldman Sachs' GSCI
    S&P to Also Obtain Goldman Sachs Sector Indexes and Goldman Sachs
    Technology Index

    NEW YORK, February 6 /CNW/ - Standard & Poor's, a division of The
    McGraw-Hill Companies (NYSE: MHP), will acquire the market leading Goldman
    Sachs Commodity Index ("GSCI") and two equity index families from the Goldman
    Sachs Group, Inc. (NYSE: GS), the two companies announced today.

    Terms of the transaction were not disclosed.

    The GSCI, created in 1991, currently includes 24 commodities and is
    designed to provide investors with a reliable and publicly available benchmark
    for investment performance in the commodity markets.

    The clear commodity index leader, the GSCI has an estimated $60 billion
    in institutional investor funds tracking it, the majority of that coming
    through over-the-counter derivatives transactions.

    After a brief transition period, the index will be renamed the S&P GSCI
    Commodity Index.

    "We are excited that the world's most popular commodity index will become
    part of the world's premier index provider, Standard & Poor's," said Heather
    Shemilt, global head of Goldman Sachs' commodity index business. "Goldman
    Sachs looks forward to continuing to work with institutional investors who
    want to gain exposure to the commodity asset class through index investing."

    "A well-diversified portfolio now routinely includes exposure to
    commodities, as investors seek ways to reduce risk, preserve capital and
    generate alpha," says Robert Shakotko, Managing Director at Standard & Poor's.
    "Standard & Poor's acquisition of GSCI provides investors with additional
    tools for portfolio and risk management, while adding to the already potent
    lineup of S&P indices."

    Under the terms of the agreement, Standard & Poor's will also acquire the
    Goldman Sachs Sector Indexes, diversified and broadly representative indexes
    for healthcare, financial institutions, utilities, consumer companies and
    cyclical industries; and, the Goldman Sachs Technology Index, a broad
    composite measure of US traded technology stocks and six technology
    sub-indexes.