2The authority on measuring dividend stocks© CME Group Index Services LLC 2012. All rights reserved. The Dow Jones Dividend Indexes are a product of "Dow Jones Indexes", the marketing name and a licensed trademark of CME Group Index Services LLC ("CME Indexes"). "Dow Jones®", "Dow Jones Dividend Indexes" and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings, LLC ("Dow Jones"), and have been licensed for use by CME Indexes. "CME" is a trademark of Chicago Mercantile Exchange Inc.In times of uncertainty, investors often gravitate toward companies that have a history of paying dividends. And for reliable measures of the world's top dividend-yielding stocks, investors turn to Dow Jones indexes.As the pioneer of dividend-index solutions, we have grown our family of dividend indexes to include measures of every major global market. These indexes are used by financial institutions all over the world, thanks in part to our renowned approach that identifies high-quality dividend leaders, accounting for dividend size, continuity, growth and sustainability.It's just another way we provide intelligent tools for today's markets. Learn more today at djindexes.com.
3Notes from the EditorAt a recent event I attended on sustainable investment, one of the speakers talked about how market problems made his firm rethink everything they did. By doing so, they found new cost savings and more efficient ways of doing business.That is innovation. Sometimes it is borne of the need to reinvent due to circumstances beyond your control. And sometimes it is just a good idea that comes to you at 3:30 pm on a Tuesday.When I reviewed the six articles for this issue of Insights, I thought that the term "innovation" could be the theme for each. Every person we met with and spoke to told us that new indexes or new strategies were developed because they saw a problem and wanted to surmount it.First we spoke with Martin Pring, whose eponymous research and asset-management precept are well known in the investment world. The author of more than 20 books, his trading philosophy serves as the basis of the new Dow Jones Pring U.S. Business Cycle Index.Chuck Martin is one of the founding partners of FFCM LLC. Speaking from his office in downtown Boston, he talked to us about the innovative strategies tracked by the new Dow Jones U.S. Thematic Market Neutral Indexes.Next up is an article based on an interview with Ralph Vince and Richard Wilkie, who started up the investment firmLSP Partners LLC. Ralph and Richard recently visited our office here in Princeton as we prepared for the launch of our new Dow Jones LSP Position Sizing Indexes-which are based on a model derived from Ralph's leveraged space portfolio (LSP) investment strategy.We didn't have to go far to find Jamie Farmer, our Executive Director of Global Business Development and Communications. He had a lot to say about dividend indexing, including why this approach is finding a whole new audience, and how Dow Jones Indexes is responding to the trend.Credit Suisse and our company have joined forces on several different index series, including inflation indexes. And Baldwin Smith, Managing Director and Global Head of Index and Alpha Strategies for that firm, has a key role in this collaboration. From his office in New York, he tells us how the newest additions to this series-the Dow Jones Credit Suisse Inflation Breakeven Indexes-track investor sentiment on inflation, something that clients had been seeking for some time.Finally, we spoke with Alicia Garcia-Herrero, BBVA's Head Economist for Emerging Markets. Her team developed a new method for identifying leading emerging markets ("EAGLEs") based on their expected future contributions to global GDP growth. We spoke with her about the research behind this new entry into the investment world's lexicon, and the index we built upon it.For centuries, the financial industry has been driven by innovation in the face of adversity and opportunity alike. That tradition continues to this day. John A. PrestboEditor and Executive Director Dow Jones IndexesInsights from Dow Jones IndexesA Quarterly Newsletter Devoted to Our Latest Innovations