FTSE Group launches FTSE WPU: a stable global currency unit for wealth preservation

Currency exposure is an unplanned consequence of international asset allocation but currency swings can have a large impact on wealth. In addition, paper currencies risk the loss of purchasing power as inflation destroys wealth. In response to this investment challenge and in consultation with US currency firm Mountain Pacific Group, FTSE WPU provides investors with a transparent and reliable tool which aims to mitigate both risk of loss arising from changes in relative valuation in currencies, as well as internal loss from inflation erosion of purchasing power in order to preserve wealth over the long-term.

FTSE WPU is a single currency unit constructed from a basket of developed currencies, emerging currencies and storable commodities. Each component within this multi-asset solution mitigates a particular source of risk; diversification of foreign currency exposure across developed currencies, hedging buying power risk against BRIC currencies, and hedging inflation risk through exposure to commodities. FTSE WPU is designed to minimize risk for investors and exhibit greater stability than any single currency.

FTSE WPU has been designed with input from market participants including global banks, institutional investors, high net worth investors, central bankers, and investment consultants, and is managed by an independent advisory committee of industry experts.

STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced the launch of a new set of ex Financials and ex Banks indices for Europe and the Euro zone. The new indices exclude all companies which are part of the Industry Classification Benchmark's (ICB) industry Financials or the supersector Banks, respectively.