Dow Jones Indexes has teamed up with AIG Financial Products to create five commodity indices and su...
Dow Jones Indexes has teamed up with AIG Financial Products to create five commodity indices and sub-indices for investors wanting to invest in the alternative asset class.
Joseph Cassano, president and chief executive officer of AIG Financial Product Corp, said: "Interest in commodities is increasingly global in scope, with a focus on the diversification benefits of this asset class. More investors are taking a closer look at commodities indices as returns have historically been negatively correlated with stock and bond returns and positively correlated with inflation measures. We have responded to investor demand for additional currencies and a wider range of segment subsets."
The Dow Jones-AIG Commodity Euro and Yen indices were launched in response to an increase in demand in Europe and Japan for non-US dollar denominated commodity indices.
For investors who do not want exposure to energy futures prices, the Dow Jones-AIG ExEnergy sub-index and Agricultural sub-index will be launched. A Commodity spot index will provide a general estimate of trends in commodity prices, ignoring the effects of rolling futures contracts and the costs of actually holding physical commodities.
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