US - Dow Jones (DJ) and AIG Financial Products (AIG-FP) have launched five new commodity indexes and sub-indexes in response to the rapid growth of interest in commodities as an asset class.
Joseph Cassano, president and chief executive officer of AIG Financial Product Corp, commented: “Interest in commodities is increasingly global in scope, with a focus on the diversification benefits of this asset class.
“Growing numbers of investors are taking a closer look at commodities indexes because returns have historically been negatively correlated with stock and bond returns and positively correlated with inflation measures.”
Two are sub-indexes of the Dow Jones-AIG Commodity IndexSM (DJ-AIGCISM) and two indexes are Euro and Yen denominated versions of the existing DJ-AIGCI.
Due to international demand, the DJ index provider and the investment and financial risk management solution firm said they decided to create the non-US Dollar denominated indexes for both Europe and Japan.
The fifth index is a spot price version of the DJ-AIGCI, joining the two indexes and seven sub-indexes already calculated daily by Dow Jones and AIG-FP.
The five new indexes and sub-indexes are: the Dow Jones-AIG Commodity Index EuroSM, the Dow Jones-AIG Commodity Index YenSM, the Dow Jones-AIG ExEnergy Sub-IndexSM, the Dow Jones-AIG Agriculture Sub-IndexSM and the Dow Jones-AIG Commodity Spot IndexSM.
Michael A. Petronella, president of Dow Jones Indexes/Ventures, said the expansion would enhance the ability of investors to track specific exposures within “significant asset classes”.
He added: “We have responded quickly to investor demand for additional currencies and a wider range of segment subsets.” Currently, there is an estimated $15bn invested in financial products that are tracking the DJ-AIGCI on a global basis.
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