LONDON, Feb. 8, 2012 (GLOBE NEWSWIRE) -- Dow Jones Indexes, a leading global index provider, today announced that it has agreed to license the new Dow Jones Global Titans 50 Volatility Risk Control Indexes for trading to J.P. Morgan and Barclays Capital.
The Dow Jones Global Titans 50 Volatility Risk Control Indexes, also launched today, includes two gauges targeting predetermined levels of market volatility (10% and 15%) by dynamically allocating between a cash component and an underlying index; the underlying index is the Dow Jones Global Titans 50 Index, which represents 50 of the world's largest stocks.
"Given the skittish markets in 2011, it's understandable there is demand for index products that are able to capably target a volatility level for a defined equity basket," said Mike A. Petronella, President, Dow Jones Indexes. "We believe these new indexes will serve as useful and reliable tools for those seeking to assess risk."
In keeping with the long-established methodology Dow Jones Indexes uses to create and maintain its other "Titans"-branded indexes, the blue-chip gauges underlying the Dow Jones Global Titans 50 Volatility Risk Control Indexes follow a very robust methodology -- float-adjusted market capitalisation, revenue and net profit are used as selection criteria.
The 20-day and 40-day realised volatilities are calculated daily. Allocation adjustments are made only when there is an allocation change of 10% or more relative to the previous day's level.
Dow Jones Indexes introduced the Dow Jones Volatility Risk Control Index family in September 2011 with the launch of the Dow Jones Europe Titans 80 Volatility Risk Control Indexes, the Dow Jones Eurozone Titans 80 Volatility Risk Control Indexes and the Dow Jones BRIC 50 Volatility Risk Control Index.
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About Dow Jones Indexes
Dow Jones Indexes (www.djindexes.com) is a leading full-service index provider that 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 offers more than 130,000 equity indexes as well as fixed-income and alternative indexes, including measures of hedge funds, commodities and real estate. Dow Jones Indexes employs clear, unbiased and systematic methodologies that are fully integrated within index families. Dow Jones Indexes is the marketing name for CME Group Index Services LLC, a joint venture company which is owned 90 percent by CME Group Inc. (www.cmegroup.com) and 10 percent by Dow Jones & Company, Inc. (www.dowjones.com), a News Corporation company (Nasdaq:NWS) (Nasdaq:NWSA) (ASX:NWS) (ASX:NWSLV) (www.newscorp.com).
Calculation of the Dow Jones Global Titans 50 Volatility Risk Control Indexes began on February 3, 2012. Real index history is available daily from this date forward. Back-tested historical data have been calculated daily back to March 31, 1999, the date at which the index base value is set at 1000. All estimated daily historical closing prices prior to February 3, 2012 are based on back-testing (i.e., calculations of how the index might have performed in the past if it had existed). Backtested performance information is purely hypothetical and is solely for informational purposes. Backtested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results.
Investment products based on the Dow Jones Global Titans 50 Volatility Risk Control Indexes are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of Dow Jones, CME Indexes and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of an instrument in any of these indexes does not in any way reflect an opinion of Dow Jones, CME Indexes or any of their respective affiliates on the investment merits of such instrument. None of Dow Jones, CME Indexes or any of their respective affiliates is providing investment advice in connection with these indexes.
Dow Jones®", "Dow Jones Indexes", "Dow Jones Global Titans 50 Volatility Risk Control Indexes", and all other index names listed above are service marks of Dow Jones Trademark Holdings LLC ("Dow Jones"), and have been licensed for use by CME Group Index Services LLC ("CME Indexes").
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