Methodology Change | Several Solactive Indices | Effective Date 21/02/2023

Today, on 06/02/2023, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):

Rationale for Methodology Change

Solactive has determined that IRC Section 1446(f) that states “if the foreign partner has gain on the sale or exchange of a partnership interest, the purchaser/transferee of the partnership interest must withhold 10% of the amount realized on that sale or exchange” is an unfavorable tax advantage and will be removing partnership shares and units from the index. This will avoid tax disadvantages and increase the replicability of the index.

Changes to the Index Guideline

The following Methodology changes will be implemented in the following points of the Index Guideline:

4. DEFINITIONS

From (old version):

“Solactive US Preferred Share Select Index (NTR) Universe” in respect of a Selection Day are instruments that fulfill the following criteria:

1. a) Defined as Preferred Share
2. b) Listed on the NYSE (including NYSE Arca and NYSE Amex), the NASDAQ Global Select Market, the NASDAQ Select Market or the NASDAQ Capital Market.
3. c) Trading in USD
4. d) Convertible instruments are excluded

To (new version):

“Solactive US Preferred Share Select Index (NTR) Universe” in respect of a Selection Day are instruments that fulfill the following criteria:

1. a) Defined as Preferred Share
2. b) Listed on the NYSE (including NYSE Arca and NYSE Amex), the NASDAQ Global Select Market, the NASDAQ Select Market or the NASDAQ Capital Market.
3. c) Trading in USD
4. d) Convertible instruments are excluded
5. e) Partnership shares and units are excluded

2.1           INDEX UNIVERSE REQUIREMENTS

From (old version):

The INDEX UNIVERSE is comprised of all financial instruments which fulfill the below requirements

 (the “INDEX UNIVERSE REQUIREMENTS“):

1. Defined as Preferred Share
2. Listed on the NYSE (including NYSE Arca and NYSE Amex), the NASDAQ Global Select Market, the NASDAQ Select Market or the NASDAQ Capital Market.
3. Trading in USD.
4. Convertible instruments are excluded.

To (new version):

The INDEX UNIVERSE is comprised of all financial instruments which fulfill the below requirements

 (the “INDEX UNIVERSE REQUIREMENTS“):

1. Defined as Preferred Share
2. Listed on the NYSE (including NYSE Arca and NYSE Amex), the NASDAQ Global Select Market, the NASDAQ Select Market or the NASDAQ Capital Market.
3. Trading in USD.
4. Convertible instruments are excluded.
5. Partnership shares and units are excluded.

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.