Methodology Change | Solactive Australian Investment Grade Corporate Bond Select TR Index | Effective Date 13/04/2021

Today, on the 13/04/2021, Solactive announces the following changes to the methodology of the following index/Indices (the ‘Affected Index/Indices’):

Rationale for Methodology Change

Solactive has determined that a methodology change is warranted. The Index provides exposure to Australian dollar (AUD) denominated non-government investment-grade bonds with a term to maturity between 5.25 and 10.25 years. Currently, the Index includes up to 35 bonds selected based on option-adjusted spreads. Since the Index was launched in 2018, the size of the Australian Investment Grade Corporate Debt market has grown significantly and the Index is no longer fully representative of the market which it seeks to represent. Therefore, Solactive AG deems that the maximum number of securities for the Index is no longer appropriate and should be increased from 35 to 50.

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 1.1 Scope of the index

From (old version):

“[…]

The index includes up to 35 bonds selected based on option-adjusted spreads.

[…].”

To (new version)

“[…]

The index includes up to 50 bonds selected based on option-adjusted spreads.

[…].”

Section 2.1 Selection of the Index Components

From (old version):

“[…]

All bonds in the Preliminary Pool are then ranked by option adjusted spread, from highest to lowest. Securities are added to the Index, in rank order, up to a maximum of 35 securities (the Index Components).

[…].”

To (new version)

“[…]

All bonds in the Preliminary Pool are then ranked by option adjusted spread, from highest to lowest. Securities are added to the Index, in rank order, up to a maximum of 50 securities (the Index Components).

[…].”

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.