NEW YORK (July 1, 2009) ― Dow Jones Indexes, a leading global index provider, today announced it licensed the Dow Jones Islamic Market International Titans 100 Index to Javelin Investment Management, an investment adviser registered with the Securities and Exchange Commission. The blue-chip index will underlie the first Shari’ah compliant exchange-traded fund listed in the U.S. The JETS Dow Jones Islamic Market International Index Fund will be available at New York Stock Exchange today.
“The Dow Jones Islamic Market International Titans 100 Index provides markets participants around the world with exposure to the 100 leading Shari’ah-compliant companies outside the United States. Javelin’s decision to select it as the underlying index for the first Shari’ah compliant ETF in the United States enables market participants to complement their existing U.S portfolios with international coverage,” said Michael A. Petronella, president, Dow Jones Indexes. “The Dow Jones Islamic Market Indexes is a unique index family was the first to market and continues to be the standard of Islamic indexing around the globe.”
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 Islamic Market International Titans 100 Index measures the stock performance of 100 leading ex-U.S. companies that have passed rules-based screens for Shari’ah compliance. To determine their eligibility for the Dow Jones Islamic Market Indexes, stocks are screened based on their industry type and their financial ratios. Excluded are companies engaged in the following lines of business: alcohol, tobacco, pork-related products, financial services, defense/weapons and entertainment. Also excluded are companies for which the following financial ratios are 33% or more: debt divided by trailing 12-month average market capitalization; cash plus interest-bearing securities divided by trailing 12-month average market capitalization; and accounts receivables divided by trailing 12-month average market capitalization.
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.
The U.S. dollar denominated Dow Jones Islamic Market International Titans 100 Index is free-float market capitalization weighted and each component’s weight is capped at 10% of the index to avoid overweight of one single stock. The index composition is reviewed annually in June. The index is also reviewed on an ongoing basis to account for corporate actions such as mergers, de-listings or bankruptcies. Year-to-date, the index is up 10.34% through June 30, 20091.
The Dow Jones Islamic Market Indexes were introduced in 1999 as the first indexes intended to measure the global universe of investable equities that pass screens for Shari’ah compliance. With more than 100 indexes, the series is the most comprehensive family of Islamic market measures and includes regional, country, and industry indexes, all of which are subsets of the Dow Jones Islamic Market Index. An independent Shari’ah Supervisory Board counsels Dow Jones Indexes on matters related to the compliance of index-eligible companies.
There are currently more than 150 licensees with more than US$7 billion in assets benchmarked to the Dow Jones Islamic Market Indexes.
1The Dow Jones Islamic Market International Titans 100 Index was first published on March 4, 2009. All estimated daily historical closing prices prior to that date 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 past performance is not indicative of future results
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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
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