Methodology Change | Solactive Clean Water Index | Effective Date 05/03/2021

Today, on the 05/03/2021, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for Methodology Change

The market for companies offering water technology and/or digital solutions is evolving fast (since creation of the Indices the Index Universe provided by Global Water Intelligence (GWI) has tripled) and companies in the Index Universe have seen their water related revenue shares increasing over time. Hence, companies engaged in this specific segment are becoming purer. An increase in the relevant water revenue share threshold will thus addresses this development accurately.

The change to the Index Methodology is in line with the objective of the Indices as it would make the selected basket purer to the overall index theme.

Change to the Index Methodology

The following Methodology changes will be implemented in the following points of the Index Guideline:

Section 2.1.4 b:

From (old version):

 “[…]

ii the company is determined not to have Expertise in “Engineering”, and 1. has Expertise in “Technology” or “Digital”; and a minimum Water Revenue Share of 5%; unless such Eligible Security is an existing Index Component in which case it shall have a minimum Water Revenue Share of 3%;

[…].”

To (new version):

 “[…]

ii the company is determined not to have Expertise in “Engineering”, and 1. has Expertise in “Technology” or “Digital”; and a minimum Water Revenue Share of 10%; unless such Eligible Security is an existing Index Component which previously had a Water Revenue Share of greater than or equal to 10%, in which case it shall only be excluded when its Water Revenue Share falls below 8%;

[…].”

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Indices. The amended version of the index guideline will be available on the effective date.