Methodology Change | Several Solactive Indices | Effective Date 20/01/2023

Today, on the 05/01/2023, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):

Rationale for Methodology Change

Solactive has determined that the switch in data provider from Thomson Reuters Business Classifications to FactSet RBICS Classifications has a minimal impact on the index selection process and final composition. The FactSet RBICS Classification System provides 6 different levels of precision classifications alongside more granularity compared to the Thomson Reuters Business Classification System. This ultimately translates into higher precision when selecting and rebalancing the aforementioned indices.

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):

SOLUSBB:

Section 2.1 Selection of the Index Components

From:

(…)

The selection of the Index Components proceeds as follows based on the Reuters Business Classification:

1. Select all stocks with business sector: Banking and Investment Services.
2. Select all stocks with industry group: Banking Services or Investment Banking Services
3. Select all stocks with industry classification: Banks or Investment Banking & Brokerage Services.

(…)

To:

(…)

The selection of the Index Components proceeds as follows based on the FactSet RBICS Classification:

1. Select all stocks with business sectors: Banking or Investment Services.
2. Select all stocks with industry groups: United States Commercial Banks, Diversified Investment, Securities Sales and Trading Services, or Investment Banking and Corporate Finance.
3. Select all stocks with industry classifications: Brokerage Services, Diversified Investment, Other Securities Sales and Trading Services, United States East and South Commercial Banks, United States Midwest and West Commercial Banks, Other United States Commercial Banks, or Other Investment Banking and Corporate Finance.

(…)

SOLUSBO:

Section 2.1 Selection of the Index Components

From:

(…)

The selection of the Index Components proceeds as follows based on the Reuters Business Classification:

1. Select all stocks with economic sector: Energy.
2. Select all stocks with business sector: Energy-Fossil Fuels.
3. Select all stocks with industry group: Oil & Gas.

(…)

To:

(…)

The selection of the Index Components proceeds as follows based on the FactSet RBICS Classification:

1. Select all stocks with business sectors: Upstream Energy, Integrated Oil and Gas Exploration and Production, or Downstream and Midstream Energy.
2. Select all stocks with industry groups: Americas Fossil Fuel Exploration and Production, Integrated Oil and Gas Exploration and Production, or Petroleum Refineries.
3. Select all stocks with industry classifications: Pan-US Fossil Fuel Exploration/Production, Integrated Oil and Gas Exploration and Production, US Southern Fossil Fuel Exploration/Production, or Americas Petroleum Refineries.

(…)

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.