Products February 1, 2007

ProShares to Use Dow Jones Indexes for its ETFs

Dow Jones Indexes announced that 11 of its U.S. indexes have been licensed to ProShares Trust and its affiliates to serve as the basis of 22 leveraged and inverse exchange-traded funds (ETFs) that launched on the American Stock Exchange February 1.
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According to a press release from Dow Jones, the ETFs are based on nine Dow Jones U.S. Industry Indexes and two Dow Jones U.S. Subsector Indexes, which are listed as follows:

  • Dow Jones U.S. Basic Materials Index
  • Dow Jones U.S. Consumer Goods Index
  • Dow Jones U.S. Consumer Services Index
  • Dow Jones U.S. Financials Index
  • Dow Jones U.S. Health Care Index
  • Dow Jones U.S. Industrials Index,
  • Dow Jones U.S. Oil & Gas Index
  • Dow Jones U.S. Technology Index
  • Dow Jones U.S. Utilities Index
  • Dow Jones U.S. Real Estate Subsector Index
  • Dow Jones U.S. Semiconductors Subsector Index.

“ProShares’ latest lineup of ETFs based on various Dow Jones industry and subsector indexes offers market participants a different, elevated approach to sector-style investing,’ said Michael Petronella, president of Dow Jones Indexes and Reprints, in the release. “The indexes licensed to ProShares encompass a diverse array—from the broader industry groups to the more narrowly defined subsectors.’

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Products February 1, 2007

New Managed Account Offering Available for Retirement Plan Participants

MG Advisory and CLS Investment Firm, a third party money manager, have joined together to offer a retirement account management service to plan participants, the firms announced.
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The new offering allows plan participants to invest some or all of their retirement assets into an individually managed account (IMA) so participants get professional asset management for a minimal cost and with no minimum account balance, according to a press release. It will bring together MG Advisory’s Internet-ready Asset Management Services with CLS’s portfolio strategy for retirement accounts called Customized Portfolio Management, in which participants’ assets are invested in a customized portfolio according to their individual investment objectives and financial goals.

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This product has multiple adviser options, according to the press release. It can be a tool to generate additional leads and clients, and can also increase revenue for third party administrators and financial advisers.Further, the announcement said that because the funds are professionally selected and the managed account product will offer mutual fund analysis and ongoing monitoring and reporting, it can be used to help advisers reduce their fiduciary responsibility.

MG Advisory is a subsidiary of Matrix Settlement & Clearance Services, which itself is a subsidiary of MG Colorado Holdings, Inc., which is a provider of back-office trust, custody, trading, and mutual fund settlement and clearance services for financial institutions including banks, broker-dealers, trust companies, investment advisers, and record-keepers/third-party administrators (TPAs).

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