13"There are several ways that an index can be generated," he explains. "Typically, the Index Oversight Committee (Dow Jones Indexes' internal steering committee) sends us an idea for a new European index or a family of indexes. This idea might have been internally generated, or it may have originated with a client. They tell me what they want and how they expect it to work for our clients. "Some indexes are created in cooperation with a partner, such as with our Dow Jones-UBS Commodity IndexesSM. In these cases, our partners are typically the asset-class experts. We work very closely with them each step of the way in creating an index."Finally, there are custom indexes. That's when a salesperson will come to us and say, 'My client wants this specific index.' These typically do not carry the Dow Jones Indexes brand, and clients have heavy input into how the index should be crafted. Then I have to make it happen, so to speak."Working with fellow developers, Thomas creates an index's architecture. That role, he says, "involves a lot of trial and error.""We test a lot. And I do mean a lot," says Thomas, as he describes going through enormous amounts of data to find the right fit for a particular index. "The committee or the client might have suggestions, but it's really up to us to find the right criteria, weighting and methodology. "We get as much input as possible from the committee, the salespeople and the clients as to the index's objective. We present the best possible scenarios, based on our research and how the technology works."Trends for EuropeIn the course of the conversation, Thomas describes several key trends he sees based on incoming requests. In particular, he mentions that clients are looking at thematic and strategy indexes and they are leaning heavily toward the safer, better-known markets of Western Europe. Hedging or avoiding risk is important to this group."There appears to be some comfort with the big-name companies and the Western European markets," says Thomas. He goes on to explain that even those clients looking to the growing emerging markets of Europe may prefer to utilize the big blue-chip companies of Western Europe that have a stake in these markets."Mainstays"Thomas makes a point that as his job and team have evolved, there are two "mainstays": First, he thinks that the team he works with, from fellow product developers in Princeton to index operations colleagues in Frankfurt, London and Beijing, are exceptional at what they do. There is camaraderie and cooperation, Thomas says, that allows him to concentrate on what he needs to do, knowing that all other aspects of the index-creation process will be done correctly and efficiently. He also thinks that the company's technology is "quite remarkable, really, because it has the capacity to handle all of the incredibly complex formulas behind our indexes. We know that whatever we design, the technology people will be able to build a program to make it work."Since Thomas is in fact the only development person in his office, he often feels like he is in London or Princeton "in spirit.""One of the group once said that I am 'an honorary Princeton person,'" he says, laughing. "I love working here in Frankfurt, but thought it was a great compliment. It's nice to work with people like this.""We test a lot. And I do mean a lot. The [Index Oversight] committee or the client might have suggestions, but it's really up to us to find the right criteria, weighting and methodology."
14Dow Jones Islamic Market Global Select Dividend IndexSMLaunch Date: September 2011The Dow Jones Islamic Market Global Select Dividend IndexSM measures the stock performance of leading dividend-paying companies in developed countries worldwide that pass rules-based screens for Shari'ah compliance. Dow Jones Volatility Risk Control IndexesSMLaunch Date: September 2011The Dow Jones Volatility Risk Control IndexesSM aim to limit risk by targeting predetermined levels of volatility. Each series consists of four indexes, targeting volatility levels of 5%, 10%, 15% and 20%. These volatility levels are achieved by dynamically allocating between the base index (as indicated by the index name) and a cash component.Dow Jones U.S. Thematic Market Neutral IndexesSMLaunch Date: September 2011The Dow Jones U.S. Thematic Market Neutral IndexesSM are a family of quantitative strategy indexes that offer a representation of sophisticated long/short strategies. They are designed to be both market and sector neutral. The index universe for the Dow Jones U.S. Thematic Market Neutral IndexesSM is composed of all stocks in the Dow Jones U.S. Index, which aims to provide 95% market-capitalization coverage of U.S. traded stocks.Dow Jones-UBS Roll Select Commodity IndexSMLaunch Date: August 2011The Dow Jones-UBS Roll Select Commodity IndexSM is a version of the Dow Jones-UBS Commodity IndexSM that aims to mitigate the effects of contango on index performance. For each commodity, the index rolls into the futures contract showing the most backwardation or least contango, selecting from those contracts with nine months or fewer until expiration.Dow Jones Islamic Market RBP U.S. 50 IndexSMLaunch Date: August 2011The Dow Jones Islamic Market RBP U.S. 50 IndexSM is designed to measure the largest 50 U.S. stocks ranked by RBP® probabilities supplied by Transparent Value, LLC that have first passed the screens for Shari'ah compliance. The index universe represents approximately the top 90% of U.S. stocks by float-adjusted market capitalization. Dow Jones Global Shipping IndexSMLaunch Date: July 2011The Dow Jones Global Shipping IndexSM measures the performance of 25 leading dividend-paying companies in the shipping industry. The index universe includes all companies involved in the shipping industry globally that primarily transport goods and materials; companies solely involved in carrying passengers are excluded.To take advantage of these new licensing opportunities, please call +1.609.520.7249 or email email@example.com.Licensing OpportunitiesNew Index IntroductionsThe following new indexes are now available for licensing:Join Our Mailing ListsTo be added to the following mailing lists, please email us at firstname.lastname@example.org:We respect your privacy. Your email address will not be shared with third parties.Index Data MonthlyPerformance report on our major indexes.New Index AnnouncementsSame-day announcements of new index launches.Insights from Dow Jones IndexesElectronic version of this newsletter.