Dow Jones Indexes to Make Methodology Changes to Total Stock Market and Global Index...
* Reuters is not responsible for the content in this press release.
Dow Jones Indexes to Make Methodology Changes to Total Stock Market and Global
Index Families
NEW YORK, June 30, 2009 (GLOBE NEWSWIRE) -- Dow Jones Indexes, a leading global
index provider, today announced that publicly traded partnerships (PTPs) will no
longer be eligible for inclusion in the Dow Jones Total Stock Market Indexes,
effective December 21, 2009. Additionally, red chip stocks will be reclassified
to Chinese companies from Hong Kong companies in the Dow Jones Total Stock
Market and Dow Jones Global indexes, effective September 21, 2009.
"The recent introduction of the Dow Jones Total Stock Market Indexes gave us
greater freedom and flexibility to meet the needs and demands of our clients and
the marketplace. The decision to exclude PLPs allows us to provide a benchmark
family that is truly representative of the investable universe of global
equities and is in line with the investment practices of institutional investors
and pension fund managers," said Michael A. Petronella, president, Dow Jones
Indexes. "Separately, the country reclassification of red chip stocks from Hong
Kong to China recognizes the growing importance of China to the global economy
as well as its appeal to foreign investors."
Publicly traded partnerships currently in the Dow Jones Total Stock Market
Indexes are master limited partnerships (MLPs) and limited liability
corporations (LLCs) treated as partnerships for U.S. federal tax purposes. As of
June 22, 2009, there are 89 U.S. PTPs with a float-adjusted market
capitalization of $81 billion in the Dow Jones Total Stock Market Indexes. These
PTPs will be gradually removed from the index over the next two quarters to
allow licensees sufficient time to adjust their portfolios. The process will be
completed by the fourth quarter rebalancing of the Dow Jones Total Stock Market
Indexes on December 21, 2009. PTPs that are eligible for inclusion prior to
December 21, 2009 will not be added to the Dow Jones Total Stock Market Indexes.
The Dow Jones Total Stock Market Indexes are the successor family to the Dow
Jones Wilshire Indexes. Launched on April 1, 2009, the index series measures the
performance of global equities with readily available prices. The Dow Jones
Total Stock Market Indexes currently includes more than 12,000 securities in 65
countries.
Separately, red chip shares of Chinese companies that trade on the Hong Kong
Stock Exchange are currently classified as Hong Kong stocks in the Dow Jones
Total Stock Market and Dow Jones Global index families. As of June 22, 2009,
there are 67 red chip companies with a float-adjusted market capitalization of
$139.2 billion in the Dow Jones Global Total Stock Market Index. For the Dow
Jones World Index, there are 56 red chip companies with a float-adjusted market
capitalization of $138 billion.
As of September 21, 2009, these red chip stocks will be reclassified as Chinese
companies.
The Dow Jones World Index is the flagship index of the Dow Jones Global Indexes
and represents approximately 95% of float-adjusted market capitalization of
countries open to foreign investors.
Further information can be found at http://www.djindexes.com.
Journalists may e-mail questions regarding this press release to
PR-Indexes@dowjones.com.
About Dow Jones Indexes
A full-service index provider, Dow Jones Indexes develops, maintains and
licenses indexes for use as benchmarks and as the basis of investment products.
Best known for the Dow Jones Industrial Average, Dow Jones Indexes also is
co-owner of the Dow Jones STOXX indexes, the world's leading pan-European
indexes that are an integrated segment of the Dow Jones Global Index series.
Additionally, Dow Jones Indexes maintains its benchmark index series, the Dow
Jones Total Stock Market Indexes, which is anchored by the Dow Jones U.S. Total
Stock Market Index and covers more than 12,000 securities in 65 markets. Beyond
equity indexes, Dow Jones Indexes maintains a number of alternative indexes,
including measures of the hedge fund and commodity markets. Dow Jones indexes
are maintained according to clear, unbiased and systematic methodologies that
are fully integrated within index families. www.djindexes.com
Dow Jones & Company (www.dowjones.com) is a News Corporation company
(Nasdaq:NWS) (Nasdaq:NWSA) (ASX:NWS) (ASX:NWSLV) (www.newscorp.com). Dow Jones
is a leading provider of global business news and information services. Its
Consumer Media Group publishes The Wall Street Journal, Barron's, MarketWatch
and the Far Eastern Economic Review. Its Enterprise Media Group includes Dow
Jones Newswires, Dow Jones Factiva, Dow Jones Client Solutions, Dow Jones
Indexes and Dow Jones Financial Information Services. Its Local Media Group
operates community-based information franchises. Dow Jones owns 50% of
SmartMoney and 33% of STOXX Ltd. and provides news content to radio stations in
the U.S.
The Dow Jones & Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4578
-0-
CONTACT: Dow Jones Indexes/STOXX press offices:
New York:
+1-212-597-5720
Frankfurt:
+49-69-29725-290
Hong Kong:
+852-800-969-336
Singapore:
+65-6-4154-299
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.



Follow Reuters