Island companies to be added to Dow Jones index
At least three Bermuda-registered companies will be added to the Dow Jones Wilshire 5000 Composite Index.
The Index ? the broadest measure of the stock prices of US companies ? has changed its definition of Index members to include companies that are based outside of the US but are ?considered by the investment community to be headquartered in the US?, a statement said.
The statement said that under the new criteria, 32 companies would be added with a total market capitalisation of $130 billion.
?Approximately 65 percent of that is the combined market cap of the top three, which are Tyco International Ltd., ACE Ltd. and Marvell Technology Group Ltd.,? said Michael A. Petronella, president, Dow Jones Indexes/Ventures.
All three of those companies are registered in Bermuda.
?As has been our practice historically, we are making adjustments that we feel are appropriate to the current investment environment,? said Dennis Tito, chairman and chief executive officer of Wilshire Associates, who spearheaded the development of the index in 1972.
?By including the securities of firms that have relocated outside of the US or were founded in other countries but have a significant presence within our nation, we?ve ensured that the scope of the domestic market-as perceived by investors-is included in the Dow Jones Wilshire 5000.?