Methodology Change | RAFI™ ESG Index Series | Effective Date 20 September 2019
Today, on the 18 September 2019, Solactive announces the following changes to the methodology of the following RAFI Indices (the ‘Affected Indices’):
|
NAME |
RIC Total Return |
RIC Price Return |
RIC Net Return |
ISIN Total Return |
ISIN Price Return |
ISIN Net Return |
|
RAFI ESG Developed Index |
RAESGDVT |
RAESGDVP |
RAESGDVN |
DE000SLA5NN8 |
DE000SLA5NL2 |
DE000SLA5NM0 |
|
RAFI ESG Developed Index (EUR) |
N/A |
N/A |
RAESGDNE |
N/A |
N/A |
DE000SLA8J06 |
|
RAFI ESG Developed EUR Hedged Index |
N/A |
N/A |
RAESGDVH |
N/A |
N/A |
N/A |
|
RAFI ESG Europe Index |
RAESGEUT |
RAESGEUP |
RAESGEUN |
DE000SLA5NV1 |
DE000SLA5NT5 |
DE000SLA5NU3 |
|
RAFI ESG US Index |
RAESGUST |
RAESGUSP |
RAESGUSN |
DE000SLA5NS7 |
DE000SLA5NP3 |
DE000SLA5NQ1 |
Rationale for methodology change
Currently, the methodology for the Affected Indices excludes fossil fuels companies by using Vigeo Eiris classification system which is based largely on revenues derived from fossil fuel activities. In order to better reflect the ESG focus of the Affected Indices the exclusion criteria are supplemented to exclude companies in the “Oil & Gas” and “Oil & Gas Services” industry group.
Changes to the methodology
The Fossil Fuels exclusion rule in Section 2.6.1 is supplemented to add an industry group classification for fossil fuels companies. The following text is added to Section 2.6.1:
“The Fossil Fuels exclusion is supplemented by an additional industry screen. Companies that fall within the “Oil and Gas”, or “Oil and Gas Services” industry group classifications are excluded from the index.“
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.