PCOM
WisdomTree Broad Commodities UCITS ETF – USD Acc
The Fund seeks to track the performance, before fees and expenses of the Bloomberg Commodity Total Return Index using an innovative replication method which includes direct exposure to spot prices for the precious metals portion of the index. Learn more about the Index that PCOM is designed to track.
- Designed to track the BCOM index, which is a diversified benchmark index for broad commodity exposure
- Direct exposure to physical precious metals allows the Fund to reduce roll cost on the precious metals portion of the BCOM index, potentially improving performance versus full swap-based replication
- Swap portion of the portfolio is guaranteed by high quality collateral (e.g., G7 government bonds)
Potential Risks?
- The returns payable on the Fund are dependent on payments received by the Fund from the swap counterparty under the terms of the relevant swap and therefore are subject to the credit risk of the swap counterparty
- The performance of commodity indices may differ significantly from spot commodity prices to which the fund may be exposed through physical replication
- An investment in commodities may experience high volatility and should be considered as a longer-term investment
- This list does not cover all risks-further risks are disclosed in the KIID and Prospectus
Overview
Fund Overview | |
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Use of Income | Accumulating |
Dividend Frequency | N/A |
Base Currency | USD |
Inception Date | 29 Nov 2021 |
Exchange Ticker | PCOM/COMX |
Index Name | Bloomberg Commodity Index |
TER | 0.19% |
Annual Swap Rate | 0.10%* |
Structure | |
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Replication Method | Physical precious metals ETCs and T-Bills with swap overlay |
Legal Form | Irish Collective Asset-management Vehicle (ICAV) |
Fund Umbrella | WisdomTree Issuer ICAV |
Domicile | Ireland |
Structure | Open-ended Exchange Traded Fund |
Financial Year End | 31 December |
UCITS Compliant | Compliant |
Further Legal and Tax Information | |
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ISA | Eligible |
SIPP | Eligible |
UCITS Eligible | Eligible |
Key Service Providers | |
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Custodian | State Street Custodial Services (Ireland) Limited |
Administrator | State Street Fund Services (Ireland) Limited |
Fund Manager | Assenagon Asset Management S.A |
Auditor | Ernst & Young Ireland |
Listings & Codes
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Benchmark Composition
Index Details
Bloomberg Commodity Index
The Bloomberg Commodity Index (“BCOM” or the “Index”) is designed to be a highly liquid and diversified benchmark for commodity investments. BCOM provides broad-based exposure to commodities, and no single commodity or commodity sector dominates the Index. Rather than being driven by micro-economic events affecting one commodity market or sector, the diversified commodity exposure of BCOM potentially reduces volatility in comparison with non-diversified commodity investments. The Index covers 4 broad commodity sectors: Energy, Agriculture, Industrial Metals and Precious Metals.
Currently, the Index is made up of commodity futures contracts weighted to account for economic significance and market liquidity. BCOM is rebalanced annually on a price-percentage basis to maintain diversified commodities exposure over time.
Index Details | |
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Index Name | Bloomberg Commodity Index |
Currency | USD |
Index Provider | Bloomberg |
Bloomberg Ticker | BCOMTR |
Leverage Factor | N/A |
Documents and Links |
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Security | 25 Jul 2024 |
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1. Gold | 16.25% |
2. Brent Crude | 8.36% |
3. WTI Crude Oil | 8.19% |
4. Copper | 5.77% |
5. Silver | 5.29% |
6. Soybeans | 5.19% |
7. Corn | 4.75% |
8. Natural Gas | 4.54% |
9. Coffee | 3.99% |
10. Aluminium | 3.99% |
11. Live Cattle | 3.94% |
12. Soybean Meal | 3.30% |
13. Soybean Oil | 3.05% |
14. Gasoil | 3.02% |
15. Sugar | 2.65% |
16. Zinc | 2.56% |
17. Nickel | 2.44% |
18. Unleaded Gasoline | 2.43% |
19. Chicago Wheat | 2.35% |
20. Heating Oil | 2.23% |
21. Lean Hogs | 1.90% |
22. Kansas Wheat | 1.64% |
23. Cotton | 1.34% |
24. Lead | 0.84% |
Responsible Investing
SFDR Disclosure
The EU Sustainable Finance Disclosures Regulation (SFDR) took effect on 10 March 2021 as part of the EU Action Plan on Sustainable Finance. The SFDR lays down harmonised sustainability related disclosure rules for EU financial market participants and advisors and requires certain sustainability disclosures to be made for financial products which promote environmental or social characteristics (Article 8 SFDR) and funds which have a sustainable investment objective (Article 9 SFDR).
There are different SFDR product categorisations for these sustainability disclosure requirements:
+ Article 6 products: require disclosures relating to the manner in which sustainability risks are integrated into the decision-making process.
+ Article 8 products: promote, among other characteristics, environmental or social characteristics or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.
+ Article 9 products: have sustainable investment as their objective
Please refer to EU regulation guidelines for more details: https://www.esma.europa.eu/sections/sustainable-finance
SFDR categorisations | |
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SFDR Disclosure | Article 6 |
Collateral Details
Collateral Structure
Replicating Exposure to Commodities Through a Swap
The fund aims to track the Bloomberg Commodity Index (the “Index”). The Fund gains indirect exposure to the energy, agriculture and industrial metals constituents of the Index through the use of swaps on a version of the Index which excludes precious metals, namely the Bloomberg Commodity ex-Precious Metals Index. The Fund also invests into exchange traded notes or certificates that are listed or traded on a Regulated Market in order to gain indirect exposure to the precious metal components of the Index. The fund also holds a portfolio of short term US T-bills.
Structure Diagram
Counterparty Risk Management
Counterparty risk is managed mainly through the daily exchange of collateral between the fund and the swap provider(s). The value of the collateral required is based on a daily calculation of counterparty exposure using the prior day’s mark-to-market of the Swaps and any unsettled cash flowing between the fund and the swap provider.
Assets posted as collateral may only include cash (US Dollars only) or government bonds of US, UK, France or Germany, with a minimum rating of AA-/Aa3 (“eligible collateral assets”). When valuing the bonds posted as collateral, a haircut is applied to each bond's value based on the issuing country and the bond's maturity, as specified in the following table. Applying a haircut to the value of eligible collateral typically results in the collateral value exceeding the counterparty exposure and in any exposure being “over-collateralised”.
Haircuts / Over-Collateralisation Applied to Collateral Securities
Documents
DISCLAiMERS
The products discussed in this document are issued by WisdomTree Issuer ICAV (“WT Issuer”). WT Issuer is an umbrella investment company with variable capital having segregated liability between its funds organised under the laws of Ireland as an Irish Collective Asset-management Vehicle and authorised by the Central Bank of Ireland (“CBI”). WT Issuer is organised as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) under the laws of Ireland and shall issue a separate class of shares ("Shares”) representing each fund. Investors should read the prospectus of WT Issuer (“WT Prospectus”) before investing and should refer to the section of the WT Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in the Shares.
“Bloomberg®” and the Bloomberg Commodity Index(es)SM referenced herein are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by WisdomTree UK Limited and its permitted affiliates including WisdomTree Management Limited and WisdomTree Issuer ICAV (together, WisdomTree). Bloomberg is not affiliated with WisdomTree, and Bloomberg does not approve, endorse, review, or recommend the WisdomTree Broad Commodities UCITS ETF. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the index(es).