NEW YORK and WILTON, Conn., July 18, 2006 (PRIMEZONE) -- Dow Jones Indexes, a leading global index provider, and AIG Financial Products Corp. (AIG-FP), a leader in financial derivatives products and a wholly-owned subsidiary of American International Group, Inc. (AIG), today launched three new versions of the Dow Jones-AIG Commodity Index(SM) (DJ-AIGCI(SM) ): the Dow Jones-AIG Commodity Forward Indexes. The new indexes will allow investors to measure exposure to longer-dated commodity futures contracts. The DJ-AIG Commodity Index 1 Month Forward(SM), the DJ-AIG Commodity Index 2 Month Forward(SM), and the DJ-AIG Commodity Index 3 Month Forward(SM) were created as tools for investors who have begun to seek increasingly sophisticated tools to manage their commodity investments as they move a portion of their exposure into longer-dated commodity futures. With the expansion of commodity futures markets in recent years, trading volume in further dated contracts has generally increased.
The Dow Jones-AIG Commodity Forward Indexes are constructed according to the rules of the DJ-AIGCI and represent the index composition one, two, and three months into the future. Each of the indexes uses different contract months for the 19 underlying commodity futures. Thus, in July 2006 the DJ-AIG Commodity Index 1 Month Forward includes those commodity futures contracts which will be in the DJ-AIGCI in August. Similarly, in July 2006 the 2 and 3 Month Forward Indexes include those contracts which will be in the DJ-AIGCI in September and October, respectively. Excess and Total Return versions of each of the new indexes are available. The new indexes join the 45 other DJ-AIGCI related indexes and sub-indexes already calculated daily by Dow Jones Indexes and AIG Financial Products Corp.
As commodity index-based investment has expanded in recent years, investors have increasingly begun to articulate views on the shape of commodity futures curves. These new indexes provide investors with a benchmark to measure the performance of deferred commodity futures markets. While futures markets have continued to develop, investors have also become increasingly sensitive to the details of index construction. These new indexes have the advantage of being constructed according to the rules of the DJ-AIGCI.
"We want to be responsive to commodity index investors' needs now that commodities have gained acceptance as a mainstream asset class," said Michael A. Petronella, President, Dow Jones Indexes/Ventures. "As forward commodity futures markets have become more liquid, we feel it is important to develop new indexes for investors seeking to take advantage of the different return characteristics of longer-dated commodity futures."
"The story here is that commodity index investors have become increasingly sophisticated about the types of exposure they want in their portfolios, including the option of moving a portion of their overall commodity exposure into longer dated maturities," said Joseph Cassano, President, AIG Financial Products Corp. "These new indexes allow investors to do this with the credibility of a benchmark that has attracted in excess of $30 billion in assets."
The Dow Jones-AIG Commodity Index, a diversified and highly liquid benchmark for the commodities markets, is composed of futures contracts on 19 physical commodities and was introduced in 1998. Index methodology and futures contracts used to calculate the index are published in the DJ-AIGCI Handbook. The handbook can be requested via www.djindexes.com or www.aigfp.com.
Journalists may e-mail questions regarding this press release to PR-Indexes@dowjones.com or contact Dow Jones Indexes/STOXX press office:
New York: +1-212-597-5720 Frankfurt: +49-69-29725290
Alternatively, please contact Whit Clay of Sloane & Company at wclay@sloanepr.com or call +1-212-446-1864
For further information regarding the Dow Jones-AIG Commodity Index, please email djaig@aigfpc.com or call Daniel Raab at AIG Financial Products Corp., +1-203-563-1960
Note to Editors:
Ticker Symbols
A list of the new index ticker symbols is as follows:
Reuters Bloomberg Comstock Thomson
DJ-AIG Commodity Index
1 Month Forward(SM) .DJAIGF1 DJAIGF1 DJAIGF1 .DAIGD
DJ-AIG Commodity Index
2 Month Forward(SM) .DJAIGF2 DJAIGF2 DJAIGF2 .DAIGE
DJ-AIG Commodity Index
3 Month Forward(SM) .DJAIGF3 DJAIGF3 DJAIGF3 .DAIGF
Reuters Bloomberg Comstock Thomson
DJ-AIG Commodity Index .DJAIGF1T DJAIGF1T DJAIGF1T .DAIGG
Total Return
1 Month Forward(SM)
DJ-AIG Commodity Index .DJAIGF2T DJAIGF2T DJAIGF2T .DAIGH
Total Return
2 Month Forward(SM)
DJ-AIG Commodity Index .DJAIGF3T DJAIGF3T DJAIGF3T .DAIGI
Total Return
3 Month Forward(SM)
About Dow Jones Indexes
Dow Jones Indexes is part of Dow Jones & Company, which publishes the world's most vital business and financial news and information. Dow Jones Indexes is a premier global provider of investable indexes, including the Dow Jones Averages and the Dow Jones Global, Regional, Country and Sector Titans Indexes and is co-owner of the Pan-European Dow Jones STOXX Indexes. Together with Wilshire Associates, Dow Jones Indexes markets and licenses the Dow Jones Wilshire index family, which includes the Dow Jones Wilshire 5000 and its size, style, and sector indexes. Dow Jones Indexes also offers a number of specialty indexes including hedge fund, commodity and credit derivative indexes.
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, MarketWatch and the Ottaway group of community newspapers. Dow Jones is co-owner with Reuters Group of Factiva and with Hearst of SmartMoney. Dow Jones also provides news content to CNBC and radio stations in the U.S.
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About AIG Financial Products Corp.
AIG Financial Products Corp. (AIG-FP) is a wholly-owned subsidiary of American International Group, Inc. The AIG-FP group has offices in London, Paris, Tokyo, Houston, Hong Kong and Wilton, CT. As a leading participant in the capital and derivatives markets, AIG-FP provides its clients with corporate finance, investment and financial risk management solutions. AIG-FP's clients include the world's top corporations, asset managers, insurance companies, banks, investment banks, sovereigns and high-net-worth individuals. AIG-FP is an active trader/dealer in foreign exchange and in a full spectrum of derivative products markets including commodities, credit, energy, equity and rates.
About AIG
American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed in the U.S. on the New York Stock Exchange as well as the stock exchanges in London, Paris, Switzerland and Tokyo.