NEW YORK, Dec. 19, 2006 (PRIME NEWSWIRE) -- Dow Jones Indexes, a leading global index provider, and Wilshire Associates Incorporated, a global leader in investment technology, investment consulting and investment management, today announced the Dow Jones Wilshire exUS Real Estate Securities Index(sm) will serve as the basis for an exchange-traded fund, the streetTRACKS(r) DJ Wilshire International Real Estate ETF (AMEX:RWX), which launched today on the American Stock Exchange. The net total return version of the index has been licensed to State Street Global Advisors ("State Street") and it is the first index in the Dow Jones Wilshire Global Real Estate Index(sm) suite licensed as an ETF.
The Dow Jones Wilshire Global exUS Real Estate Securities Indexes measure the performance of publicly traded global real estate securities outside the U.S. The net total return version is calculated by deducting each represented country's local withholding tax rates on dividends.
Total returns, net of taxes, also are calculated for the Dow Jones Wilshire Global Real Estate Securities Index(sm), Dow Jones Wilshire Global REIT Index(sm) and the Dow Jones Wilshire exUS REIT Index(sm).
"The Dow Jones Wilshire Global Real Estate Indexes provide institutional investors with broad, consistent measurement tools that accurately benchmark the returns of an investor's real estate securities portfolio. State Street's ETF based on the 'net' version -- which excludes each country's withholding tax rates in the index returns -- allows investors to capture the performance of this increasingly popular asset class," said Michael A. Petronella, president of Dow Jones Indexes/Ventures.
Launched in March 2006, the Dow Jones Wilshire Global Real Estate Indexes measure the types of global real estate securities that represent the ownership and operation of commercial or residential real estate. These global indexes serve as a proxy for direct real estate investment by institutions. Because actual real estate holdings are bought and sold infrequently, indexing the "market value" of these holdings is slow and problematic, while pension plans and other institutions need a more reliable and regularly available benchmark.
The Dow Jones Wilshire Global Real Estate Indexes track real estate operating companies (REOCs) and real estate investment trusts (REITs) in 24 countries. The Dow Jones Wilshire Global REIT Index is a subset of the Dow Jones Wilshire Global Real Estate Securities Index and is comprised only of those REITs and REIT-like securities in the larger index. While REITs dominate the publicly traded real estate securities market in the U.S., elsewhere in the world REOCs are in the majority. As governments worldwide seek to provide access to real estate investment, there will be more growth in the availability of REIT-like vehicles.
To be included in the indexes, an operating company or REIT must be an equity owner and operator of commercial or residential real estate and must generate at least 75% of its revenue from such assets or operations. It also must meet minimum requirements for market capitalization and liquidity. Securities of certain types of companies, such as mortgage REITs, are excluded, as are companies with more than 25% of their assets in direct mortgage investments. The reason for this exclusion is that factors other than real-estate supply and demand -- such as interest rates -- influence the market values of these companies.
About the Dow Jones Wilshire Index Family
The development of the global family of indexes in 2006 marks a new phase of the Dow Jones-Wilshire relationship. The affiliation began in 2004 when Dow Jones and Wilshire co-branded and marketed the Dow Jones Wilshire family of indexes. By extending the Dow Jones Wilshire methodology used in the U.S. internationally, the global indexes provide unprecedented breadth, consistent global coverage, and objective and transparent rules.
Dow Jones Wilshire indexes are available on market-data vendor platforms -- many in real-time format -- and on the Dow Jones Indexes (www.djindexes.com) and Wilshire Associates (www.wilshire.com) Web sites. The Dow Jones Wilshire 5000(sm) Composite Index, the only true broad market index, is calculated and distributed by Dow Jones Indexes pursuant to an agreement between Dow Jones & Company and Wilshire Associates Incorporated. The Dow Jones Wilshire Global Total Market Index, the broadest measure of global equities, was launched in October 2006.
The Dow Jones Indexes and Wilshire Associates logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2464
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: +49-69-29-725-290
To contact Wilshire Associates public relations, please e-mail kim.shepherd@wilshire.com or call: Chicago: Kim Shepherd, +1-847-332-2987
Note to Editors:
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.
About Wilshire Associates
Wilshire Associates is a leading global investment technology, investment consulting and investment management firm with four business units including Wilshire Analytics, Wilshire Funds Management, Wilshire Consulting and Wilshire Private Markets. The firm was founded in 1972, revolutionizing the industry by pioneering the application of investment analytics and research to investment management for the institutional marketplace. Wilshire also is credited with helping to develop the field of quantitative investment analysis that uses mathematical tools to analyze market risks. All other business units evolved from Wilshire's strong analytics foundation.
Wilshire developed the index now known as the Dow Jones Wilshire 5000 Composite Index(sm), the first asset/liability models for pension funds, the first U.S. equity style metrics work and many other "firsts" as the firm grew to more than 350 employees serving the investment needs of institutional and high net worth clients around the world.
Based in Santa Monica, CA, Wilshire provides services to clients in more than 20 countries representing in excess of 600 organizations with assets totaling more than $12.5 trillion. With nine offices on four continents, Wilshire Associates and its affiliates are dedicated to providing clients with the highest quality counsel, products and services. Please visit www.wilshire.com for more information.