Methodology Change | Several Solactive Indices | Effective Date 30/08/2022

Today, on the 24/08/2022, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices):

Rationale for Methodology Change

Solactive has determined that the introduction of a single-name weight cap of 15% for all index components which exceed a weight of 16% on any given review day within the aforementioned indices during the semi-annual review periods will ensure that these indices maintain continued compliance with all regulatory requirements outlined within UCITS. The introduction of this weight capping rule will ensure that the index better reflects compliance with UCITS regulations, thereby protecting our clients from regulatory and legal issues that may arise due to breaches that may occur beyond the 20% weight rule outlined by UCITS arising from market-related events such as the current volatility experienced within many of these industries that these indices track. The relative illiquidity of the companies that operate within these industries also contributes to potential breaches of UCITS regulations during periods of increased market volatility as they are more susceptible to extreme market movements than other securities within the same asset class (but different, more liquid/stable industries).

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):

Section 2.3.2 Reweighting of the Index Components

From (Old Version)

On each Review  Day the index is reweighted if at least one of the following two conditions is true:

(…)

To (New Version)

On each Review  Day the index is reweighted if at least one of the following three conditions is true:

(…)

• If the Index Administrator determines that any Index Component exceeds a weight of 16% on any Review Day, that component’s weight will be capped at 15%.

Here, the excess weight will be redistributed proportionately to the other components within 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. The amended version of the index guideline will be available on the effective date.