Indexation

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Dictionary Says

Definition of 'Indexation'

Linking adjustments made to the value of a good, service or other metric, to a predetermined index. Indexation requires the identification of a price index and whether a linking the value to the price index, will accomplish the organization's goals. Indexation is most commonly used with wages in a high inflation environment.
Investopedia Says

Investopedia explains 'Indexation'

Businesses may use indexation to match an employee's salary to the inflation rate, meaning that an increase in the inflation rate over a period of time, will lead to an increase in salary. This particular type of indexation is called a cost of living increase (COLA). Indexation is a pre-specified process, meaning that all parties involved are typically aware of how the link works.
Search results for

'Indexation'

  • Get Active In Your Bond Portfolio

    http://www.investopedia.com/articles/08/bonds/active-management-bond-portfolio.asp
    ... has evolved, and the styles of management have become more sophisticated (including
    two blended portfolio-management strategies, indexation and immunization). ...

  • Strategies For Determining The Market's True Worth

    http://www.investopedia.com/articles/07/true-value.asp
    ... In a standard-bearing paper called "Fundamental Indexation" published in the Financial
    Analysts Journal in 2005, Robert Arnott, Jason Hsu and Philip Moore ...

  • Fundamentally Weighted Index Investing

    http://www.investopedia.com/articles/mutualfund/07/fw_index.asp
    ... The table below presents this example. This is where fundamentally-weighted indexes
    offer an alternative. "Fundamental Indexation," a study released in 2005 by ...

  • Top 4 Strategies For Managing A Bond Portfolio

    http://www.investopedia.com/articles/bonds/08/bond-portfolio-strategies.asp
    ... predictions. The middle-of-the-road strategies include indexation and immunization,
    both of which offer some security and predictability. ...

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