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DIOCG\DAI-ZPA\EH\EL XEHUPD\DEX

Ditraluhtdai

Odxel-dihame divestmeits pgy g spehdodel gmauit ao diterest gt refucgr ditervgcs uitdcmgturdty wkei tke ardfdigc prdihdpgc ds gcsa returiel. \kere gre mgiy rdsns tkgt odxel-dihamedivestars oghe suhk gs diterest rgte, wkere tke gsset prdhes hgi ocuhtugte di vgcue fdvei ghkgife di tke diterest rgte> hreldt rdsn, mare spehdodhgccy oar iai-faverimeitgc dssues wkeretke dssuer ds uig`ce ta mgne diterest gil/ar prdihdpgc pgymeits> cdqudldty rdsn, lue ta tke cghnao trgles di tke mgrnet ao tkgt pgrtdhucgr sehurdty, eth.

Aie atker pgrtdhucgr tkregt ta odxel-dihame divestars ds tke rdsn ao diocgtdai. Diocgtdai dsleodiel gs tke dihregse di tke prdhe ao faals gil servdhes gil su`sequeitcy, g ogcc di

purhkgsdif pawer. \kere gre same prelamdigit ghheptel megsures ao diocgtdai usel dildooereit hauitrdes> tke Haisumer Zrdhe Dilex (HZD), tke Petgdc Zrdhe Dilex (PZD), tkeKgrmaidsel Dilex ao Haisumer Zrdhes (KDHZ), tke Zraluher Zrdhe Dilex (ZZD). \kese dildhesiatdaigccy haver g `gsnet ao hertgdi faals gil servdhes `aufkt `y kausekacls (see odfure 7).\key gre wedfktel ta tkedr gvergfe skgre ao g kausekacl expeildture. \ke dtems di tke `gsnetgre revdewel every yegr ta reoceht tke hkgife di tke mgrnet gil haisumer speildif pgtteris.

Odfure 72 Hampaieits ao Diocgtdai Dildhes> saurhe oram Leutshke @gin

Divestars ao stgilgrl odxel-dihame sehurdtdes `egr diocgtdai rdsn di tkgt tke purhkgsdif pawerao diterest pgymeits haucl `e eralel aver gil g`ave tkedr ardfdigc expehtgtdais tkraufkauttke cdoe ao tke `ail. \kds haucl `e pgrtdhucgrcy lgmgfdif oar very caif mgturdty sehurdtdes.

Xuppase yau purhkgse g aie yegr zera-haupai `ail talgy oar $4:, pgr vgcue ao $7::. \kereturi ds g $7: hgpdtgc fgdi> keihe tke regc diterest rgte hgi `e hgchucgtel gs 77.7% ($7:/$4:).

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Oghtardif di gi diocgtdai rgte, sgy 0%, tke regc diterest returi waucl aicy `e ;.4%^(7+77.7%/7+0%)-7].

Pegc Pgte ao Peturi= ^(7+r)/(7+d)] -7Vkere, r2 iamdigc rgte ao returi gil d2 diocgtdai rgte

\kds hgi `e gppraxdmgtecy stgtel gs2

Pegc Pgte ao Peturi ≧ Iamdigc Pgte ao Peturi ‘ Diocgtdai Pgte

Odfure 0 skaws kaw tke eooeht ao diocgtdai, usdif PZD, kgs lestrayel aver

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Odfure 82 Lgtg oram Aoodhe ao Igtdaigc Xtgtdstdhs

Muhk ao tke 6:s sgw tke ehaiamdes ao levecapel hauitrdes di stgfocgtdai, dccustrgtel di odfure8, wkdhk waucl kgve kgl g levgstgtdif eooeht ai divestmeit. \ke stgfigit frawtk, kdfkuiempcaymeit rgte ghhampgidel wdtk kdfk diocgtdai, wgs lue ta tke lrgmgtdhgccy skgrp rdse diwarcl adc prdhes. Gi gffressdve maietgry gil odshgc tdfkteidif kgl `eei dmpcemeitel ta `rdifdiocgtdai uiler haitrac di tke UN. DC-Fdcts, dssuel gil prdhel `y UN Le`t MgigfemeitAoodhe were levecapel ta sgve tke faverimeit maiey, espehdgccy wkei diocgtdai oecc skgrpcygil stgyel caw (tkds uctdmgtecy `raufkt diocgtdai expehtgtdai lawi taa).

Vdtk gi gfdif papucgtdai, sgvers gil peisdai ouils, wka leoerrel haisumptdai, wgshaiheriel di tke outure regc wartk ao sgvdifs. Ouils ao tkds igture kgve caif-term cdg`dcdtdes,aotei cdinel ta diocgtdai ar egridifs gil tkus kgve g straif gppetdte oar diocgtdai-cdinel gssetsta put ai tke atker sdle ao tke `gcgihe skeet. \kds lemgil wgs giatker regsai oar tke hregtdaiao DC-Fdcts.

Dt wgs giiauihel di tke 744? press haioereihe mgle `y Pa`ert Pu`di, tke UX \regsuryXehretgry, tkgt \DZX were levecapel gs gi gttempt ta `raglei tke divestar `gse oar UXfaverimeit le`t gil ta cawer tke hast ao ouildif. Haiveitdaigc `ails expasel divestars tadiocgtdai rdsn, sa tkedr ydecls presumg`cy haitgdi gi diocgtdai rdsn premdum> `y dssudif \DZX,tke \regsury haucl gvadl pgydif tke premdum.

Feiergc Xtruhture

\DZX gil DC-Fdcts gre aooerel gt g mdidmum purhkgse prdhe ao $7:::/ £7::: wdtk g odxelsemd-giiugc haupai rgte. \DZX dssuel quatel prdhe ds tke regc prdhe gil ds spehdodhgccydilexel ta Haisumer Zrdhe Gcc Ur`gi Iai-Xegsaigccy Glbustel Dilex (HZD-U) di UidtelXtgtel. DC-Fdcts gre trglel di tke hcegi prdhe gre dilexel ta tke Petgdc Zrdhe Dilex (PZD).\kese twa dilexes kgve gi dssue metrdh ao 7:: gil hkgife wkei diocgtdai faes up ar lawi(tke PZD wgs re-`gsel di Bgiugry 74;6 oram 84

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UX

Cdinel ta HZD-U

\regsury DiocgtdaiZratehtel Xehurdtdes (\DZX)

\dme cgf ds 8 maitks

Leocgtdai ocaar

UN

Cdinel ta PZD

Dilex Cdinel Fdcts (DC-Fdcts)

\dme cgf ds 8/; maitkslepeildif ai dssue lgte.(8 maitks oar sehurdtues

dssuel goter 0::

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\ke semd-giiugc haupai pgymeit ds cdnewdse glbustel `y tke oghtar (equdvgceitcy, dt dshgchucgtel ai tke diocgtdai-glbustel prdihdpgc)

Haupai Zgymeit = 7/0 x Haupai Pgte x Dilex Pgtda

Dilex Pgtda 07;.6?

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Diocgtdai Expehtgtdai

Gi uilerstgildif ao mgrnet diocgtdai expehtgtdais ds ao use ta ehaiamdsts gil pacdhy mgnersgil tke letermdiel ydecl gfgdist tke diocgtdai tgrfet fdves gi dildhgtdai ao kaw hreld`ce tatgrfet ds dtseco.

Oar \DZX, tke ‛`regnevei diocgtdai— (@ED) ds tke ldooereihe `etweei tke ydecl ai \DZX gil ghampgrg`ce \-`ail ao tke sgme mgturdty.

@regnevei Diocgtdai = \regsury @ail Tdecl ‘ \DZX Tdecl

\ke @ED ds ourtker `ranei lawi dita diocgtdai expehtgtdai gil g rdsn premdum. \kearetdhgccy,do divestars `ecdeve diocgtdai ds kdfker tkgi tke hurreit @ED, \DZX skaucl `e `aufkt gs tkey greuiler-prdhel gil vdhe versg. Di hgse tke metrdh exheel tke ghtugc diocgtdai, haiveitdaigc

`ails prdhes lehregse wkeregs \DZX prdhes dihregse, `ehguse tke rdsn premdum tkgt ds pgdl oarwgs uiieelel. Kawever, wkei ghtugc diocgtdai ds hcase ta tke preldhtel tke returis ao iarmgcgil diocgtdai pratehtel `ails gre hcasecy harrecgtel gil we kgve mdiar ocuhtugtdais di tkedr

prdhes.

Oar DC-Fdcts, tke ‛Odsker Dleitdty— malec ds usel. \ke diocgtdai expehtgtdai ds tke spregl `etweei tke regc ydecl ai tke DC-Fdct gil tke ydecl ao g haiveitdaigc fdct ao tke sgme mgturdty.Gs DC-Fdcts gre trglel wdtk iamdigc prdhes, ta lerdve tke regc ydecl metrdhs, we waucl ieel taniaw tke hgsk ocaws tkgt gre awiel, wkdhk ds uihertgdi. \a averhame tkds pra`cem, gigssumptdai ds mgle termel ‛maiey ydecl—2 gssumes tkgt PZD fraws gt g rgte `eyail tke cgstniawi vgcue, hurreitcy 8% giiugccy.

PZDt = PZD t-7 (7+o)7/70

Vkere o = maiey ydecl

\ke haupai pgymeits gil relemptdai vgcue gre mgppel ghharldifcy ta tkedr PZD gssumptdaiOram kere tke ydecl/ DPP hgi `e estdmgtel. Odfure 6 dccustrgtes tkds recgtdaiskdp.

Odfure 62 _dsugc dccustrgtdai ao tke ydecl hurves

Di regcdty, diocgtdai preldhtdais dihcule g sdfidodhgit ldoodhucty sa gs ta `e ghhurgte, gil oartkgt regsai faverimeit—s outure diocgtdai expehtgtdais gre kdfkcy lepeilg`ce ta tke hurreit

perdal diocgtdai.

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Harrecgtdai & Ldversdodhgtdai

DZXs kgve `eei usel gs g rdsn ldversdodhgtdai taac oar partoacdas lue ta tkedr caw harrecgtdaiwdtk atker gsset hcgsses. Odfure ; `ecaw dccustrgtes tke harrecgtdai `etweei \DZX gil atkergsset hcgsses.

Odfure ;2 Kdstardhgc harrecgtdai `etweei trgldtdaigc diocgtdai-kelfdif gsset hcgsses & \DZX

Gctkaufk \DZX gre ldrehtcy cdinel wdtk diocgtdai, tke harrecgtdai ds caw lue ta hkgifes diditerest rgte gil atker oghtars. Dt ds gcsa evdleit tkgt usdif g skarter lurgtdai \DZX dilex, tkeharrecgtdai `etweei \DZX gil diocgtdai hgi `e mdidmdzel> oram :.:; ta :.7;. \DZX gcsa kgverecgtdvecy cawer harrecgtdais wdtk atker gsset hcgsses. \kds mgnes \DZX (gil feiergccy atkerDZX) gi eooehtdve ldversdodhgtdai taac> mdtdfgtdif rdsn gil dmpravdif returis. Oghtars tkgt mgygooeht tke lemgil oar \DZX dihcule diocgtdai expehtgtdais, rdsn gppetdtes, g`sacute regc ydeclcevecs, suppcy gil expehtgtdai ao kdfker HZD.

Odfure 42 Eoodhdeit oraitders skawdif eooehts ao ldversdodhgtdai

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Aver tke caif term, DZX kgve gppraxdmgtecy tke sgme returis gs haiveitdaigc `ails wdtkcawer vacgtdcdty, tkus DZX hgi `e, ta g hertgdi exteit, superdar. Xame gigcyses prapase tkgthaiveitdaigc `ails skaucl `e hampcetecy repcghel `y DZX wdtk respeht ta gsset gccahgtdai, gstke ham`digtdai ao stahns, atker regc gssets, gil DZX haucl `e aptdmgc oram g rdsn stgilpadit.

Odfure 4 skaws tkgt oar tke sgme cevec ao stgilgrl levdgtdai, tke partoacda aooers kdfkerreturis wdtk DZX (gssumdif everytkdif ecse haistgit). Giatker wgy ta vdew tkds ds tkgt oar tkesgme returi, tke partoacda kgs cawer stgilgrl levdgtdai wdtk g ham`digtdai ao DZX gil equdtytkgi wdtk haiveitdaigc `ails gil equdty.

@eieodts & Hkgcceifes

\kere gre ldstdifudskdif glvgitgfes gil ldsglvgitgfes ao DZX. Ve hgi a`serve tkgt di feiergcDZX gre haisdlerel gs g ‛sgoer— divestmeit lehdsdai hampgre ta haiveitdaigc `ails, `edifdilepeileit ao diocgtdai, g sdfidodhgitcy uipreldhtg`ce rdsn. Odfure 7: hampgres pgymeitsshkeluces gil vgcues.

Zgymeit uilerhaiveitdaigc ̀ ail

Zgymeit uiler DZX wdtk ldooereit diocgtdaisheigrdasϊ= :% ϊ =

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Pdsn ieutrgc divestars waucl preoer tkds divestmeit appartuidty, ar rdsn tgndif divestarswaucl hkaase dt gs g ldversdodhgtdai strgtefy oar kelfdif gfgdist diocgtdai. Faverimeits hgigcsa gvadl pgydif tke rdsn premdum wdtk tke dssugihe ao DZX, rgdsdif hkegper hgpdtgc. \ke rdsn

premdum ds pgdl ta haiveitdaigc `ail divestars `ehguse ao tke pateitdgc rdsn di diocgtdai.

\ke dssugihe ao DZX haucl hregte pasdtdve faverimeit hreld`dcdty gil reluhe saveredfi rdsn.Dssudif DZX hgi `e perhedvel gs ghtdvecy trydif ta `rdif lawi diocgtdai gil aooerdif aptdaissuhk gs leocgtdai ocaars skaws tke faverimeits— a`cdfgtdai ta prateht divestars.

Ai tke atker kgil, DZX gre aotei hrdtdhdsel oar `edif kgrl ta hgchucgte> mgtkemgtdhgccy tkeygre kgrler ta qugitdoy `ut haiheptugccy tkere gre cess uihertgdity gs g praluht. DZX gre cesscdqudl tkgi haiveitdaigc `ails gs divestars waucl caan ta kacl tkem ta tke eil ao mgturdty,regpdif tke `eieodts ao regc rgte ao returis. Di glldtdai, same DZX kgve aicy `eei reheitcyditraluhel, wdtk skart suppcy> dts cdmdtel exdsteihe mgnes tkem cess cdqudl gs wecc gshampetdtdai gfgdist atker trgldtdaigc gssets ta kelfe gfgdist diocgtdai suhk gs facl gilhammaldtdes.

\gxgtdai ai \DZX pases gi dssue gs tke gpprehdgtdai di prdihdpgc gmauit di tke yegr dt ahhurs.\kds praluhes g ‛pkgitam dihame— tkgt ds su`beht ta tgxgtdai. Do kdfk eiaufk, divestars mgyexperdeihe iefgtdve hgsk ocaws. \ke cgf `etweei tke diocgtdai giiauihemeit gil dts dmpght dsgiatker oghtar tkgt haucl gooeht tke returis gil prdhes. Di g stg`ce diocgtdaigry ehaiamy, g 8 ar;-maitk cgf waucl iat suoodhdeitcy gooeht tke returi ar prdhe. Kawever, fdvei vacgtdcediocgtdai rgtes, tke cgf hgi hguse su`stgitdgc hkgifes, resuctdif di very dihaisdsteit dihame.Cgstcy, di tke hgse ao \DZX mutugc ouils, leocgtdaigry perdals hgi cegl ta caw ar ialdvdleils, aooerdif ia pratehtdai, `ehguse tke iefgtdve glbustmeits ai dihame gre megsurelgs iefgtdve dihame. Odfure 70 summgrdses tke `eieodts gil hkgcceifes.

Odfure 702 Xummgry ao tke `eieodts gil hkgcceifes ao DZX

Expehtel peroarmgihe ao DZX gfgdist haiveitdaigc `ails ds mare a`vdaus diehaiamdh/diocgtdai eivdraimeits gs lepdhtel di odfure 78. Do tke autcaan oar diocgtdai dsup/lawi, gi divestar skaucl preoer/iat preoer divestmeit di DZX. Vdtk tke atker sheigrdas,

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‛frawtk/diocgtdai— gil ‛rehessdai/ldsdiocgtdai—, tke expehtel returi ao dilexel DZX gfgdist ghaiveitdaigc `ail ds iat gs a`vdaus. \ypdhgccy, tkese gre perdals wkei tke divestar must caanta hurreit gil expehtel maietgry pacdhy ta lrdve tke lehdsdai.

Odfure 782 Mgtrdx dccustrgtdif wkei ta `uy DZX

Bgpgi BF@d

Odfure 7< 2 Bgpgi—s diocgtdai rgte oram 0::< ta 0:78

Ai Mgrhk 0::

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0::; lue ta tke odigihdgc hrdsds gil oegrs ao leocgtdai. Oaccawdif g perdal ao frawtk, tkeywere redssuel di Ahta`er 0:78, tkds tdme diharpargtdif g leocgtdai ocaar. Di hgse wkere tkedilexgtdai haeoodhdeit ogccs `ecaw 7 gt mgturdty, tke prdihdpgc gmauit wdcc `e releemel.Oaccawdif frgpks dccustrgtes tke vacgtdcdty ao diocgtdai oar Bgpgi.

Gvergfe diocgtdai rgte2 -:.:7% (0::

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Aie hrdtdhdsm ao DZX ds tkgt tkey la mare kgrm tkgi faal> dssudif DZX megis gi dihregsel

pressure oar atker gssets ta `e cdinel ta diocgtdai gcsa wkdhk wgs wky `eoare 0::8, dt wgsdccefgc oar giy le`t ta `e dilexel di Fermgiy.

\kere gre hurreitcy oaur diocgtdai-cdinel Fermgi `ails gs skawi di odfure 7? gil tkey wereodrst dssuel di 0::?> tke Hurreihy Ght ao Buie 74

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@d`cdafrgpky & Peoereihes

@aans2Hkgulkry, M & Hrass, F (0::8), \ke Fdct-Elfel Mgrnet , Axoarl2 @utterwartk KediemgiiXuilgresgi, X (0::4), Odxel Dihame Mgrnet & \kedr Lerdvgtdves , MG2 Ghglemdh Zress

Grtdhces/ Zgpers2@grhcgys Hgpdtgc (0::

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Mdidstry ao Odigihe Bgpgi2 kttp2//www.mao.fa.bp/eifcdsk/Aoodhe oar Igtdaigc Xtgtdstdhs2 kttp2//www.ais.fav.un/\rgldif Ehaiamdhs2 kttp2//www.trgldifehaiamdhs.ham/Vgcc Xtreet Baurigc2 kttp2//wsb.ham/mlh/pu`cdh/pgfe/0Q8:0:-tdps.ktmc

http://www.mof.go.jp/english/http://www.ons.gov.uk/http://www.tradingeconomics.com/japan/inflation-cpihttp://wsj.com/mdc/public/page/2_3020-tips.htmlhttp://wsj.com/mdc/public/page/2_3020-tips.htmlhttp://www.tradingeconomics.com/japan/inflation-cpihttp://www.ons.gov.uk/http://www.mof.go.jp/english/