BNP Paribas Quantitative Strategies, the Paris-based bank’s commodity pool operator, is delisting its only ETF this month—the futures-based commodities fund Stream S'P Dynamic Roll Global Commodities Fund (BNPC)—less than a year after its launch.
BNPC, tracking the world-production-weighted S'P GSCI Dynamic Roll Excess Return Index—a long-only synthetic portfolio consisting of futures contracts on 24 underlying index commodities—was designed to serve up broad exposure to commodities through a portfolio that reflects general price movements and inflation in the global economy.
The fund came to market at the height of the European debt crisis last June, a time when commodities prices were under significant pressure from growing fears that a sluggish global economy would translate into lower aggregate demand both here and abroad.
Still, BNPC managed to amass some $20 million in assets in 10 months and tally gains of nearly 7 percent, even as it faced stiff competition for investor assets from ETFs such as the $6.83 billion PowerShares DB Commodity Tracking Index Fund (DBC) and the $517 million United States Commodity Index Fund (USCI).
“The managing owner has determined that, in light of current market conditions, it was advisable to voluntarily withdraw its shares from listing on the exchange and to terminate the registration of the shares,” the bank said in a press release.
BNPC’s last trading day is set to be on or about April 12, the release said.
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