NEW YORK, July 19, 2005 (PRIMEZONE) -- Dow Jones Indexes, a leading global index provider, has granted Arrivato Advisors LLC its first license to use the Dow Jones U.S. Target Date Indexes as the basis of mutual funds. The "Arrivato Dow Jones U.S. Target Date Funds" are the first indexed "life-cycle" funds specific to the U.S. market.
Dow Jones Target Date Indexes are designed to be used as the benchmark for balanced and multi-asset-class portfolios with risk profiles that become more conservative over time by reducing the equity component as a target date approaches.
Arrivato Advisors, an investment management firm registered with the Securities and Exchange Commission, will utilize the Dow Jones U.S. Target 2010, Dow Jones U.S. Target 2015, Dow Jones U.S. Target 2020, Dow Jones U.S. Target 2030, and Dow Jones U.S. Target 2040 indexes to create products for investors who wish to take a "set-it-and-forget-it" investment approach.
"Over the long run, indexing has proven its ability to outperform active management," said Michael A. Petronella, president of Dow Jones Indexes/Ventures. "Now, investors with a preference for life-cycle products have the advantage of indexing. We are pleased that Arrivato has chosen the Dow Jones U.S. Target Date Indexes as the basis of its fund offerings."
"The target date approach is one favored by defined contribution investors, particularly for 401(k) and IRA programs," said Eric Rubin, president of Arrivato Advisors LLC. "Using the Dow Jones U.S. Target Date Index helps investors achieve their investment goals, while simplifying their allocation strategies."
Each Dow Jones U.S. Target Date Index is a blend of indexes that track three separate asset classes -- stocks, bonds and cash. The weightings of the indexes representing each separate asset class are adjusted on a monthly basis to hit predefined relative risk levels. Each index in the target date family comprises six Dow Jones equity indexes and three Lehman bond indexes. The Lehman one-to-three month T-bill index serves as the cash component.
Over time, the relative risk of each Dow Jones U.S. Target Date Index declines to a more conservative 20% equity index component weighting from an aggressive 90% equity index component weighting. Once the 20% level is reached, the index's equity component weighting remains constant.
The methodology, as well as a full list of components -- including weightings and index values for the Dow Jones Target Date Indexes -- are available at www.djindexes.com.
Journalists may e-mail questions regarding this press release to PR-Indexes@dowjones.com or contact a member of the Dow Jones Indexes/STOXX public relations group:
New York: Sybille A. Reitz, +1-212-597-5735 Frankfurt: Simona Deckers, +49-69-97142894 Nicole Wesch, +49-69-97142893
With questions about the Arrivato product, please contact:
Arrivato Advisors LLC Eric Rubin, 1-212-601-2735
Note to Editors
About Dow Jones Indexes
Dow Jones Indexes is a premier global provider of investable indexes, including the Dow Jones Averages, the Dow Jones Global Titans 50, the Dow Jones Asian Titans 50, the Dow Jones Sector Titans, the Dow Jones Country Titans Indexes and is co-owner of the Pan-European Dow Jones STOXX Indexes. Dow Jones Indexes is part of Dow Jones & Company, which publishes the world's most vital business and financial news and information.
In addition to Dow Jones Indexes, Dow Jones & Company (NYSE:DJ) (dowjones.com) publishes The Wall Street Journal and its international and online editions, Barron's and the Far Eastern Economic Review, Dow Jones Newswires and the Ottaway group of community newspapers. Dow Jones is co-owner with Reuters Group of Factiva, with Hearst of SmartMoney and with NBC Universal of the CNBC television operations in Asia and Europe. Dow Jones also provides news content to CNBC and radio stations in the U.S.
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