Dow Jones, UBS announce daily versions of DJ-UBS Commodity indexes

By Toni Weeks

San Diego, April 5 - Dow Jones Indexes and UBS Investment Bank have launched daily currency-hedged versions of the Dow Jones - UBS Commodity index.

According to a press release, these new versions are designed as benchmarks for non-U.S. dollar investors and are calculated to reflect the hedging of foreign exchange risk on a daily basis. The daily indexes are available in excess return versions, which reflect the movements of underlying commodity futures prices and foreign exchange rates, and total return versions, which reflect additional assumed return on cash collateral held in the relevant non-U.S. currency.

The daily and monthly currency-hedged versions of the indexes will be published together.

The following daily versions of the Dow Jones - UBS Commodity index are available: Australian dollar hedged daily, Canadian dollar hedged daily, Swiss franc hedged daily, euro hedged daily, pound sterling hedged daily and yen hedged daily.

"The new daily currency-hedged versions of the Dow Jones - UBS Commodity indexes will help meet a growing demand for non-U.S. dollar-denominated investment tools in the commodity markets," Jon Fraade, managing director in the UBS commodities group, said in the release.

"We believe these benchmarks will satisfy investors who wish to measure commodity markets while removing the additional risk of currency fluctuations from their portfolios," added Michael A. Petronella, president of Dow Jones Indexes.

As of March 25, assets totaling $76.9 billion tracked Dow Jones - UBS commodity indexes.

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