"The new S&P Global Agribusiness Composite Index provides a complete exposure to the global agribusiness industry by combining the downstream exposure offered by equities with the upstream exposure available through commodities," the company's Vice-President (Portfolio Services) Steven Goldin said in a statement.
This composite model provides volatility for investors and capitalises on S&P's strengths in both markets, he said.
The new index incorporates the new S&P Global Agribusiness Index and the existing S&P GSCI Agriculture and Livestock Index, which is a subset of the S&P GSCI designed to provide liquid exposure to agriculture and livestock commodities markets through futures contracts, the global credit rating agency said.
The index offers flexibility to investors who want a pure equity exposure to this segment. It consists of 24 of the largest publicly-traded agribusiness companies from around the world with developed market listings that meet minimum market capitalisation and liquidity requirements, it said.
More From This Section
The index is comprised of diversified mix of producers, distributors and processors, and equipment and material supplier companies, it added.