LONDON (Reuters)- Bache Commodities launched the first commodity index fund to be approved by European regulators for retail investors on Wednesday, the company told Reuters.
The European Union’s UCITS III directive allows retail funds to use derivatives such as futures.
The Bache Global Series Commodity Index fund will allow a move into cash when commodity prices are falling.
"We believe this is the first UCITS III commodity index fund available to retail investors," Marc Bailey, managing director at Bache Commodities, told Reuters this week.
"The index has been approved by the regulatory authorities as investable for retail clients because of its diverse nature."
