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.
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