Notes from the Editor

John A. Prestbo

Editor and Executive Director Dow Jones Indexes

The great author F. Scott Fitzgerald famously wrote, "The rich are different than you and me."

To which Ernest Hemingway retorted, "Yes, they have more money."

Why do we as a culture obsess over famous, powerful and most of all, rich people? Is there a publication that does not worship at the altar of celebrity, featuring people whose wealth (even those gained by dubious means) fascinates us so?

Even we at Dow Jones Indexes caught the bug. This year, we created the Dow Jones Luxury Index. Its 30 underlying components are like a worldwide "who's who?" of the companies that cater to ultra-affluent. Among them are U.S.-based Northern Trust (private banker and investment manager for many of the world's super-rich); Germany's high-end auto makers Porsche and BMW; and France's premier suppliers of luxury consumer goods: LVMH, Christian Dior and Hermes. They are names that evoke images of lifestyles many people dream of (and many more strive to attain).

The Dow Jones Luxury Index was the brainchild of Robert Frank, author of The Wall Street Journal's "The Wealth Report." In this always-entertaining blog (check it out at http://blogs.wsj.com/wealth/), Frank finds financial gold in the extravagances, foibles and unconventional behavior of those in the top tiers of wealth, income and ability to get their names into water cooler conversations. The author of "Richistan: A Journey Through the Wealth Boom and the Lives of the New Rich," Frank's insights into this peculiar market are sharpened by years of observation and analysis. He is both entertaining and precise, and he makes for a great interview.

Speaking of great interviews, our own Jim Sloan has a great one in this issue. Few people realize that Jim has been with Dow Jones Indexes literally since its inception. He is the Director of Application Technology for our group, which means that, for the most part, anything having to do with our index data goes through him (and his group) before it pops up on your computer screen. Read how Jim keeps our technology ship running smoothly (while only occasionally losing sleep).

As markets weather multiple storms worldwide, pensions and other investors are looking for alternatives. In our Featured Index column we profile the Dow Jones Brookfield Infrastructure Indexes, which provide data on companies that offer infrastructure-related services to the world’s growing populations. We created these innovative indexes in response to the enormous opportunities for investors who want in on massive public works projects (and who want the stringent standards set down in these indexes for measuring those opportunities).

At the intersection of socially responsible investing (SRI) and investment opportunity lies a new world of opportunity: the Dow Jones CCX Emissions Indexes. We spoke with Jamie Farmer, Senior Director of Global Index Operations, about how this new family of indexes, which was created in partnership with the Chicago Climate Exchange (CCX). As companies in the U.S. and Europe cut back on pollution by choice or mandate (or both), some will have the flexibility and capital to make the necessary changes to their plants to make for a cleaner environment. Others will not. These indexes follow the trading of credits among these companies.

Finally, we sat down with Joseph LaCorte of S-Network Global Indexes. They are a client of our Custom Solutions group. S-Network’s partner Ardour Capital covers one of the hottest (and currently, most turbulent) markets around: the global alternative energy industry. Dow Jones Indexes calculates, maintains and distributes their benchmarking tools for this very important market. LaCorte told us just how our alliance helps his firm and his customers.

We hope you enjoy reading these stories as much as we did in preparing them.