Hedged index methodology
S&P Dow Jones Indices: Index Mathematics Methodology 2 Currency and Currency Hedged Indices 24 Return Definitions 24 The Hedge Ratio 25 Calculating a Currency-Hedged Index 25 Currency Hedging Outcomes 26 Index Computation 26 Dynamic Hedged Return Indices 28 Currency Hedged Excess Return Indices 29 Quanto Currency Adjusted Index 30 FTSE | FTSE Currency Hedging Methodology, v1.2, October 2017 4 of 18 forwards are used to derive the forward points to avoid the mismatch of the spot and NDF rates. For example, the KRW spot rate in the WM Reuters service stays unchanged after the local = Hedged Index one business day prior to the previous hedging date