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Re: *~1Best~* post# 7

Monday, 11/03/2008 10:19:01 PM

Monday, November 03, 2008 10:19:01 PM

Post# of 10
The S&P GSCITM provides investors with a reliable and publicly available benchmark for investment performance in the commodity markets. The S&P GSCITM is also designed to be a “tradable” index, readily accessible to market participants and cost efficient to implement. The index is calculated primarily on a world production-weighted basis and is comprised of the principal physical commodities that are the subject of active, liquid futures markets. As a result, the index is widely recognized as a leading measure of general price movements and inflation in the world economy. In order to reflect the performance of a total return investment in commodities, Standard & Poor’s calculates four separate but related indices based on the S&P GSCITM and a number of sub-indices representing components of the S&P GSCITM. The composition of the S&P GSCITM is reviewed on a monthly basis.

Index exhibits the following characteristics:

* Weighting: On a world-production weighted basis
* Contracts:Non-financial commodities
* Currency: U.S. dollar denominated
* Domicile: Traded on or through a trading facility which has its principal place of business in an OECD member country

Index Governance and Policy
The Index Committee, which is comprised of three full-time professional members of Standard & Poor’s staff and two members of Goldman Sachs Group, oversees the daily management and operations of the S&P GSCITM. Standard & Poor’s and the Index Committee are committed to maintaining the S&P GSCITM as a liquid, tradable index that serves as a principal benchmark for commodity investing. On at least a yearly basis, S&P also meets with an Index Advisory Panel to consult on matters relating to the composition and maintenance of the index.

http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_gsci/2,3,4,0,0,0,0,0,0,2,1,0,0,0,0,0.html