London, 30 July 2009

Report reviewing asset class performance, flows and trends, index performance etc. 

• Commodities were the strongest performing major asset class in 1H 2009, with the Dow Jones-UBS Commodities IndexSM rising by 5% compared to a 2% decline in the FTSE 100 Index, a 3% rise in the Dow Jones STOXX 50 Index and declines in major bond and real estate benchmark indexes.

• Performance in 1H 2009 can be characterized as a return of fundamentals-based investing following the de-leveraging and panic-driven sell-off of the latter part of 2008.  Performance between the main commodities sectors was diverse and even performance within each sector varied widely, generally reflecting underlying fundamental factors.

• Industrial metals were the strongest performing sector, with the Dow Jones-UBS Industrial Metals Sub-IndexSM surging by 28%, as key lead indicators of the industrial cycle began to turn up in the early part of the year and China demand for key metals rose at a faster than expected pace.

• Precious metals also experienced diverging price trends with gold performing strongly in the first part of the year as the panic of 4Q 08 lingered into the new year and silver, platinum and palladium surging ahead as lead indicators picked-up.

• Agriculture prices were split, with softs rising sharply driven by rapidly rising sugar prices as India moved from net sugar exporter to importer while grains were dragged down by weak wheat and corn prices.  Soybean prices rallied strongly as inventory forecasts were revised sharply downwards.

• Performance within the energy sector was extremely diverse, with gasoline returns surging nearly 60% and natural gas returns falling sharply. Oil prices started the year on a weak note, but as cyclical indicators improved prices exploded upwards, more than doubling in the space of three months.

• Flows into exchange traded commodities (ETCs) surged in 1H 2009, with cumulative flows more than doubling from their crisis lows in November 2008, highlighting the strength of investor interest in the asset class. Assets under management in ETF Securities' ETCs doubled to $12bn from $5.6bn in November 2008 with nearly 80% of the rise driven by new flows into the asset class.

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