UPDATE: Solactive Post Ex-Date Dividend Adjustment Methodology for Divisor Indices

In December 2018, Solactive AG published a “Market Consultation on the Solactive Post Ex-Date Dividend Adjustment Methodology in Divisor Indices” (https://www.solactive.com/market-consultation-on-the-solactive-post-ex-date-dividend-adjustment-methodology-in-divisor-indices/). The consultation paper aimed to collect comments on proposed changes related to the treatment for dividend payments of Japanese and South Korean companies in Divisor Indices.

The consultation period ended on January 16, 2019. Solactive AG received a large number of valuable responses. Following this, Solactive AG conducted a high-level review of each respondent’s feedback to finalize the methodology which would then reflect the market circumstances in terms of dividend distributions in Japan and South Korea.

Since there was a clear acceptance of the proposed changes from all respondents, Solactive AG concluded to implement all the proposals addressed in the consultation paper without any changes.

On December 3, 2019, Solactive AG introduced the Post Ex-Date Dividend Adjustment Methodology. This methodology has been used for dividend payments for Japanese companies in Divisor Indices since January 1, 2020.

Please be informed that Solactive AG will use the same treatment for all dividend payments in South Korea with an Ex-Date as of November 1, 2020. The Post Ex-Date Dividend Adjustment Methodology for South Korean dividend payments will be applied for all existing and new Divisor Indices which are administered by Solactive AG.

For other Divisor Indices where Solactive AG is only the calculation agent, the index owner is kindly asked to contact Solactive AG  to use the Post Ex-Date Dividend Adjustment Methodology in respective indices.