The index aims to replicate inflation in Asia ex-Japan by using a static weighting of inflation from Europe, the US and Japan, as well as commodities exposure, to provide a liquid proxy hedge. G3 inflation and commodities weights in the index have shown to closely track Asian inflation. The weightings of the index are based on the regression of the IMF’s GDP PPP index against G3 inflation and commodity components.
To continue reading...
Start a Risk.net Trial
Register for a Risk.net Business trial to access this article. Sign up today and get access to: