Methodology Change | Knights of Columbus U.S. All Cap Index | Effective Date 10/04/2023
Today, on the 31/03/2023, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):
|
Index Rics |
INDEX NAME |
ISIN |
|
|
.KOFCUSAP |
Knights of Columbus U.S. All Cap Index PR |
DE000SLA99Y6 |
|
|
.KOFCUSAC |
Knights of Columbus U.S. All Cap Index |
DE000SL0C0J2 |
|
Rationale for Methodology Change
The Affected Indices aim to represent companies whose policies and practices are inconsistent with the United States Conference of Catholic Bishops’ (USCCB) Socially Responsible Investing Guidelines. Therefore, to reflect the changes in the USCCB Socially Responsible Investing Guidelines, Solactive has decided to modify the guideline of the Affected Indices.
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):
Section 2.2
| Current Guideline criteria | Future Guideline criteria | |
| Factor | Exclusion | Exclusion |
| Abortifacients | Any ties | Any ties |
| Abortion | Any ties | Any ties |
| Contraception | Any ties to production or percentage share of revenues from distribution is greater than 5% | Any ties to production or percentage share of revenues from distribution is greater than 10% |
| Stem Cell Research | Engagement in human embryonic stem cell (HESC), fetal tissue, cloning research or research organizations contracted to conduct human, embryonic, fetal or adult stem cell research, development or production of technology specially designed/applied for human stem cell research | Engagement in human embryonic stem cell (HESC), fetal tissue, cloning research or research organizations contracted to conduct human, embryonic, fetal stem cell research, development or production of technology specially designed/applied for human stem cell research |
| Gender Discrimination | Engagement in gender discrimination in the workplace | N/A |
| Racial Discrimination | Engagement in racial discrimination in the workplace | N/A |
| Pornography | Percentage share of revenues from involvement in pornography (distribution and production) greater than 5% |
Any ties to companies involved in the production of pornography |
| Community Reinvestment Act | CRA Ragin in “Needs to Improve” or “Substantial Noncompliance” | N/A |
| Military Equipment & Weapons | Receives a Red Flag or Amber Flag rating from the designated screening resource for involvement in anti‐personnel mines, biological weapons, chemical weapons, cluster munitions, or percentage share of revenues derived from nuclear weapons and nuclear weapons outside of the Non‐Proliferation Treaty (NPT) greater than 5% or involvement in military equipment or services greater than 50%. |
Companies who are negatively flagged by the designated screening resource for involvement in programs regarding the following weapons: anti‐personnel mines, biological weapons, chemical weapons, cluster munitions, and incendiary weapons or companies with greater than five percent of revenues derived from nuclear weapons |
| Civilian Firearms | N/A | Companies involved in the production of firearms of all types |
| Cannabis | N/A | Companies that derive 50% or more of their revenue from cannabis |
| Gambling | N/A | Companies that derive 50% or more of their revenue from; gambling services, the operation or management of any activity involving the wagering of money on a game or event, or from retailing low-risk gambling products such as lottery tickets |
| Tobacco | N/A | Companies that are involved in the production of tobacco |
| Body Modification Surgeries/ Hormonal Therapies | N/A | Companies located in the sub‐industry groups within the healthcare sector that have the potential to be engaged in body modification surgeries or hormonal therapies |
| In Vitro Fertilization (IVF) | N/A | Companies with involvement in IVH, including: (i) companies involved in operating hospitals or clinics engaged in the provision of IVF services and (ii) companies using IVF for research and development activities which include companies using embryos sourced from IVF clinics for biopharmaceutical research and development |
| Assisted Suicide/Euthanasia | N/A | Companies with involvement in Euthanasia, including (i) companies engaged in the production of pharmaceutical agents for drugs specifically designed for Euthanasia and (ii) companies involved in the operation of hospitals, clinics and/or retirement homes where drugs for active euthanasia or medically assisted suicides are potentially prescribed or administered by physicians. |
| Human Cloning | N/A | Companies that conduct human cloning research |
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.