FTSE launches reference index to protect real wealth

FTSE Group has launched a reference index based on a diversified basket of currencies and commodities that aims to protect investors from currency and inflation risks and safeguard real wealth. The FTSE Wealth Preservation Unit (WPU) can be used as a systematic hedging tool by institutions via overlays, swaps or ETFs, for example, or investors can buy the components of WPU in a portfolio with FTSE’s chosen weightings. The unit has three components: developed market currencies to…