Methodology Change | Several Solactive Indices | Effective Date 05/11/2024
Today, on the 04/11/2024, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):
|
NAME |
RIC |
ISIN |
|
Solactive Global Hydrogen Index Solactive Global Hydrogen Index GTR Solactive Global Hydrogen Index PR Solactive Global Hydrogen v2 Index Solactive Global Hydrogen v2 Index GTR Solactive Global Hydrogen v2 Index PR Solactive Solar Index Solactive Solar Index GTR Solactive Solar Index PR Solactive Solar v2 Index Solactive Solar v2 Index GTR Solactive Solar v2 Index PR Solactive Wind Energy Index Solactive Wind Energy Index GTR Solactive Wind Energy Index PR Solactive Wind Energy v2 Index Solactive Wind Energy v2 Index GTR Solactive Wind Energy v2 Index PR Solactive AgTech and Food Innovation Index Solactive AgTech and Food Innovation Index GTR Solactive AgTech and Food Innovation Index PR Solactive AgTech and Food Innovation v2 Index Solactive AgTech and Food Innovation v2 Index GTR Solactive AgTech and Food Innovation v2 Index PR |
.SOLGHYD .SOLGYDT .SOLGHYDP .SOLGHYD2 .SOGHYD2T .SOGHYD2P .SOLRAYS .SOLRAYST .SOLRAYP .SOLRAYS2 .SORAYS2T .SORAYS2P .SOLWNDY .SOLWNDYT .SOLWNDYP .SOLWNDY2 .SOWNDY2T .SOWNDY2P .SOLKROP .SOLKROPT .SOLKROPP .SOLKROP2 .SOKROP2T .SOKROP2P |
DE000SL0DNU9 DE000SL0DNV7 DE000SL0DNT1 DE000SL0D1P6 DE000SL0D1Q4 DE000SL0D1N1 DE000SL0EBF3 DE000SL0EBG1 DE000SL0EBE6 DE000SL0D1S0 DE000SL0D1T8 DE000SL0D1R2 DE000SL0EBJ5 DE000SL0EBK3 DE000SL0EBH9 DE000SL0D1L5 DE000SL0D1M3 DE000SL0D1K7 DE000SL0DNX3 DE000SL0DNY1 DE000SL0DNW5 DE000SL0D1Y8 DE000SL0D1Z5 DE000SL0D1X0 |
Rationale for Methodology Change
Fund providers need to maintain specific RIC diversification requirements in the USA for their product offerings. Often, when rebalances are delayed, this puts many fund providers at risk for failing the RIC testing requirements outlined by the SEC. Holiday postponements can really place these providers at risk for failing these testing requirements. Moreover, holiday postponements also significantly affect the tradability of international securities as there is usually less liquidity in these securities markets. Therefore, preponing rebalances (as other index providers offer) will ensure that these issues are mitigated for the fund providers and other end users of the index products in question. The effects of trading day exemptions resulting in postponements in rebalancing is evident in the aforementioned indices during the November rebalancing period. Black Friday will delay the rebalance to December during this period and this is anticipated during the November 2025 rebalancing period as well.
Changes to the Index Guideline
The following Methodology changes will be implemented in the following points of the Index Guideline (ordered in accordance with the numbering of the affected sections):
- DEFINITIONS
From:
(…)
“Adjustment Day” is the last BUSINESS DAY in February and August. If that day is not a Calculation Day the Adjustment Day will be the second following Calculation Day.
(…)
“Rebalance Day” is the last BUSINESS DAY in May and November. If that day is not a Calculation Day the Rebalance Day will be moved to the second following Calculation Day.
(…)
To:
(…)
“ADJUSTMENT DAY” is the last BUSINESS DAY in February and August. If that day is not a CALCULATION DAY the ADJUSTMENT DAY will be the second previous CALCULATION DAY.
(…)
“REBALANCE DAY” is the last BUSINESS DAY in May and November. If that day is not a CALCULATION DAY the REBALANCE DAY will be moved to the second previous CALCULATION DAY.
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.