Methodology Change | SOLACTIVE ALL CHINA DIVIDEND ENHANCER | Effective Date 07th April 2020

Today, on the 07/04/2020, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for methodology change

The above indices represent Hong Kong and Shanghai/Shenzhen Connect listed stocks that have exhibited dividend growth in the past and are expected to do so. Solactive has determined that the current index methodology lacks fallback in case  fundamental data for last year’s dividends (FY0A) is not yet available for stocks in the universe. To take account of those stocks, a fallback is implemented. The following clarification is added with the immediate effect.

In case no fundamental data for Dividend (FY0A) is available, the estimated dividend (FY0E) will be used.

Changes to the Index Guideline

Section 2.2 SELECTION OF THE INDEX COMPONENTS

[…]

• Stocks must satisfy the following condition regarding expected, current and past dividends:
  • Dividend (FY2E) > Dividend (FY1E) > Dividend (FY0A) > Dividend (FY-1A) > Dividend (FY-2A)

• In case no fundamental data for Dividend (FY0A) is available, the estimate Dividend (FY0E) will be used.
• [..]

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.