index-linked


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index-linked

(of an income payment such as a wage, or the value of an asset such as a house), connected to a PRICE INDEX in some predetermined proportion, so that, for example, if the retail price index increases, a wage payment will be automatically adjusted by the same proportion. Indexation is a means of protecting the PURCHASING POWER of an income payment or the value of an asset against erosion by INFLATION.

index-linked

adj. (of a VARIABLE) having a value determined in proportion to a specified index. For example, many pension schemes are linked to the RETAIL PRICE INDEX so that as retail prices increase year by year, pensions increase by the same proportion so as to maintain their value in real terms. See BASE YEAR, INDEXATION, INDEX NUMBER, PRICE INDEX, REAL VALUES.
References in periodicals archive ?
The property benefits from a new, unbroken 20-year lease to Eddie Stobart Ltd., with a guarantee from its parent ESLL Group Ltd., with five yearly rent reviews index-linked to the Retail Prices Index.
To illustrate and test the proposed approximations in case of index-linked instruments, we conduct simulation analyses and additionally derive the price of an ILW using secondary market cat bond prices and compare the resulting price with the available real-world ILW prices, finding a high degree of consistency with both robustness tests, which support our suggested approximations for replicating portfolios.
The Bank of England said that in accordance with the terms of the prospectus dated 19 December 1986, that the rate of interest payable on the 2 1/2% Index-Linked Treasury Stock 2024 for the interest payment due on 17 July 2016 will be GBP3.3250 per GBP100 nominal of stock.
Among its requirements are new high-level principles around how insurers' assets, including unit-linked and index-linked funds, must be managed.
Finland-based lender Pohjola Bank Plc (PINK:POJLY) is to issue index-linked bonds on 6 April 2011.
The spread was earlier set at flat vs 1.125% November 2037 Index-linked Gilt issue, said the source.
Also, they can rarely be withdrawn before maturity, while index-linked certificates can be withdrawn at any time - albeit with a reduced pay-off ahead of maturity.
Called the ABF Pan Asia Bond Index Fund and managed by State Street Global Advisors Singapore Ltd., the new financial product is the first bond index-linked ETF to be listed on a Japanese bourse, the TSE said.
Index-linked annuities track the RPI measure of inflation, and while some of the products have a floor in place to protect holders if inflation turns negative, others do not.
The indices may be licensed and used for portfolio management and benchmarking purposes, and as the basis of structured products and other index-linked investment vehicles such as exchange traded funds (ETFs).
Index-linked certificates offer a better rate than high street or online savings accounts.
They received pounds 575 per game last season and their fees have been index-linked in recent years, but they are apparently seeking a major increase this season.