DOW JONES GLOBAL TITANS 50 INDEX

A market capitalization-weighted index of 50 of the largest multinational companies in the world. The stock universe used for selection is the Dow Jones World Index, which includes approximately 95% of developed and emerging markets by market capitalization.

The index members are chosen based on a ranking system that takes into account the free-float market cap, company sales and revenues, and net income levels. The 50 highest-ranking companies are included in the index for that year as long as they earn revenue both domestically and internationally.

The index is reconstituted annually, and weightings are recalculated quarterly to account for changes in the float of member stocks. The index is calculated and reported in both U.S. dollars and euros.

As one might expect, U.S.-based companies dominate the index. For companies that trade on international exchanges, the price used to calculate the index on an intraday basis will be the previous closing price or current price of any American depositary receipts trading that day.

Because the companies in the Global Titans 50 Index are known for their size and stability, the earnings valuation of the index as a whole tends to be lower than major market averages such as the S&P 500. As of March 2007, the index traded for less than 13-times forward earnings estimates while paying an above-market dividend yield.