LONDON, May 23, 2012 (GLOBE NEWSWIRE) -- Dow Jones Indexes and Parala Capital LLP today announced the launch of the Dow Jones Parala Macro Allocation Indexes, a new family of stock indexes based on Parala Capital's proprietary macro-allocation methodology.
Formed in 2007, Parala Capital focuses solely on developing investable strategies using rigorous quantitative methodologies based on proprietary and academic research. The London-based firm's proprietary macro-allocation methodology seeks to identify the future performance of a universe of assets by utilizing economic factors as inputs for a passive asset allocation strategy.
"By working with Parala Capital on this unique family of indexes, we are joining with some of the financial community's leading experts who have spent years analyzing how asset prices are affected by changing economic conditions," said Michael A. Petronella, President, Dow Jones Indexes. "We believe the Dow Jones Parala Macro Allocation Indexes will appeal to market participants who appreciate innovative ideas that can help them better understand and measure the effects that macroeconomic conditions have on the financial markets."
Parala Capital's macro-allocation methodology uses monthly macroeconomic and risk-factor inputs to measure the state of the economy and capital markets, taking into account changing economic conditions by over- and under-weighting market segments based on their expected performance. The model rebalances regularly to create forward-looking rankings and scores.
Based on these scores, Dow Jones Indexes then assigns weightings to the market segments (subindexes) represented in each index.
The first index in the series, the Dow Jones Parala Global Sector Macro Allocation Index, allocates among 19 global sector indexes within the Dow Jones Sector Titans Index family.
It is expected that additional indexes will be added to the Dow Jones Parala Macro Allocation Index series over time.
Journalists may e-mail questions regarding this press release.
About Dow Jones Indexes
Dow Jones Indexes (www.djindexes.com) is a leading full-service index provider that 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 offers more than 130,000 equity indexes as well as fixed-income and alternative indexes, including measures of hedge funds, commodities and real estate. Dow Jones Indexes employs clear, unbiased and systematic methodologies that are fully integrated within index families. Dow Jones Indexes is part of a joint venture company owned 90 percent by CME Group Inc. (www.cmegroup.com) and 10 percent by Dow Jones & Company, Inc. (www.dowjones.com), a News Corporation company (Nasdaq:NWS) (Nasdaq:NWSA) (ASX:NWS) (ASX:NWSLV) (www.newscorp.com). "Dow Jones Indexes" is a service mark of Dow Jones Trademark Holdings LLC and has been licensed for use by CME Group Index Services LLC.
The Dow Jones Indexes logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1289
About Parala Capital LLP
Parala Capital LLP (www.parala.com) is a leading provider of forward looking, macroeconomic based investment solutions. The firm was founded in 2007 and focuses solely on developing high-interest, investable strategies using rigorous quantitative methodologies based on proprietary and academic research. Academics involved with the firm are partners in the business and work in close collaboration with Parala Capital's industry practitioners. Strategies can be delivered as investable indices utilizing an independent calculation agent or implemented on an advisory or discretionary basis.
"Dow Jones®" and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings LLC ("Dow Jones") and have been licensed for use by CME Group Index Services LLC ("CME Indexes"). "CME" is a trademark of the Chicago Mercantile Exchange, Inc. "Parala" is a service mark of Parala Capital LLP. The Dow Jones Parala Indexes are published pursuant to an agreement between CME Indexes and Parala.