Announcement Methodology Change | Solactive Innovative Technologies Index | Effective Date 28/08/2020

Today, on the 21/08/2020, Solactive announces the following changes to the methodology of the following Indices (the ‘Indices’):

Rationale for Methodology Change

Solactive AG deems the current Index Methodology lacking regarding the appropriate reflection of the index objective. The Index Objective is set to represent an investable universe of publicly-traded companies that are involved in innovative and disruptive technological trends across a broad range of industries. The Indices classify the trends in several themes and a company is eligible for inclusion in the Indices if it derives its assets or revenue from the themes. The themes need to be reviewed on an ongoing basis as new technological trends could arise or the currently defined themes need to be adjusted or removed. In order to align better with the objective of the affected Indices, the following changes are proposed.

Proposed Changes to the Index Guideline

The following Methodology changes are proposed in the following points of the Index Guideline ordered in accordance with the numbering of the affected sections):

1. Section: Introduction

From (old version):

“(…) The Index is governed by a published, rules-based methodology and is designed to measure the performance of an investable universe of publicly-traded companies that are involved in innovative and disruptive technological trends across a broad range of industries. The term “disruptive technologies” is generally understood to refer to advances in the technological sector that displaces an established technology or creates a completely new industry (e.g. email displacing letters, mobile phones displacing the telecom industry).

Companies eligible for inclusion in the Index:

(i) will derive assets or revenues from any of the following themes:

(each an Index Category and together the Index Categories). (…)”

To (new version):

“(…) The Index is governed by a published, rules-based methodology and is designed to measure the performance of an investable universe of publicly-traded companies that are involved in innovative and disruptive technological trends across a broad range of industries. The term “disruptive technologies” is generally understood to refer to advances in the technological sector that displaces an established technology or creates a completely new industry (e.g. email displacing letters, mobile phones displacing the telecom industry).

Companies eligible for inclusion in the Index:

(i) will derive assets or revenues from any of the following themes:

(each an Index Category and together the Index Categories). (…)”

2. Section: 2.1 Selection of the Index Components

 From (old version):

“The initial composition of the Index as well as any ongoing adjustment are based on the following non-discretionary rules:

On the Selection Days, Solactive AG defines the Index Universe as outlined in Section 4. All companies in the Index Universe are sorted into one of the following eight Index Categories based on their Industry/membership in an Index as outlined in the following table:

(…)”

To (new version):

“The initial composition of the Index as well as any ongoing adjustment are based on the following non-discretionary rules:

On the Selection Days, Solactive AG defines the Index Universe as outlined in Section 4. All companies in the Index Universe are sorted into one of the following eight Index Categories based on their Industry/membership in an Index as outlined in the following table:

(…)”

3. Section: 4 Definitions

 From (old version):

“The “Index Universe” in respect of a Selection Day are companies that fulfill the following criteria: (…)

Communication and Collaboration Content Sites, Web Search Sites and Software, Blockchain Technology, Cryptocurrency Mining, Cryptocurrency Trading / Exchanges, Hematological Oncology Biopharmaceuticals, Other Oncology Biopharmaceuticals, Biotechnology and Genomics (GMO/Hybrids) Products, Factory Automation Equipment, General Semiconductors, Industrial Machine Parts and Support Equipment, Processor Semiconductors, Specialized Semiconductors, Programmable Logic and ASIC Semiconductors, Household Robot Makers, Surgical Robotic Systems, Alternative Energy Car Manufacturers, Multi-Type Car Manufacturers, Auto Interior Comfort/Safety/Electronics Products, Fuel Cell Equipment and Technology Providers, Heavy-Duty and High-End Batteries Manufacturing, Video Multimedia Semiconductors, General Analog and Mixed Signal Semiconductors, Carrier Edge Network Management Equipment, Customer Premises Network Security Equipment, Colocation and Data Center Services, Government IT Services, Network Security Access Policy Software, Network Security Software, Virtual Reality Design and Engineering Software, Home and Office Virtual Reality Software, Virtual Reality Equipment.”

To (new version):

“The “Index Universe” in respect of a Selection Day are companies that fulfill the following criteria: (…)

Communication and Collaboration Content Sites, Web Search Sites and Software, Blockchain Technology, Cryptocurrency Mining, Cryptocurrency Trading / Exchanges, Hematological Oncology Biopharmaceuticals, Other Oncology Biopharmaceuticals, Biotechnology and Genomics (GMO/Hybrids) Products, Diversified Bioanalytical Instruments, Analytical and Bioanalytical Services, Bioanalytical Consumables, Genetic Molecular Diagnostic Test Kits, Factory Automation Equipment, General Semiconductors, Industrial Machine Parts and Support Equipment, Processor Semiconductors, Specialized Semiconductors, Programmable Logic and ASIC Semiconductors, Household Robot Makers, Surgical Robotic Systems, Alternative Energy Car Manufacturers, Multi-Type Car Manufacturers, Auto Interior Comfort/Safety/Electronics Products, Fuel Cell Equipment and Technology Providers, Heavy-Duty and High-End Batteries Manufacturing, Video Multimedia Semiconductors, General Analog and Mixed Signal Semiconductors, Carrier Edge Network Management Equipment, Customer Premises Network Security Equipment, Colocation and Data Center Services, Government IT Services, Network Security Access Policy Software, Network Security Software, Virtual Reality Design and Engineering Software, Home and Office Virtual Reality Software, Virtual Reality Equipment, Media Download and Streaming Digital Content Sites, Media and Entertainment Industry Software, Electronic Gaming Equipment, Electronic Gaming/Entertainment Electronics Makers, General Gaming Industries, General Gaming Products and Services, Online Gaming Systems, Other Games Software, Online Game Websites and Software, Handheld and Smart Phone Games Software.”

After an internal review of the initially proposed changes, Solactive AG decided not to add the subindustries “Cobalt Ore Mining” and Lithium Ore Mining” to the category “Future Cars”. The reason is that these subindustries are not consistent with the other innovative technologies and do not fit to the overall index strategy.

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