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Announcements

Methodology Change | Solactive – B-BRE Residential Real Estate Index | Effective Date 03/02/2021

Today, on the 03/02/2021, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

NAME RIC ISIN
Solactive – B-BRE Residential Real Estate Index .SOBBRERZ DE000SLA14D9
Solactive – B-BRE Residential Real Estate Index GTR .SOBBRERZG DE000SLA14E7

Rationale for Methodology Change

The Index Universe of the Affected Indices consists of European securities that are component of IFEU ETF in addition to the other ETF and requirements as mentioned under the definition of “Solactive – B-BRE Residential Real Estate Index Universe” in Section 4 (Definitions). Due to the liquidation of IFEU ETF , Solactive has decided to replace the IFEU ETF with the D5BK ETF, which is based on the same underlying index.

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):

2.1 Selection of the Index Components

OLD

[…]

Selection of European Companies:

  • Select the 10 companies with the largest Market Capitalization in the IFEU ETF that tracks in European commercial real estate as of 31/12 of the previous year. If there are less than 10, all residential companies are selected.

[…]

NEW

[…]

Selection of European Companies:

  • Select the 10 companies with the largest Market Capitalization in the D5BK ETF that tracks in European commercial real estate as of 31/12 of the previous year. If there are less than 10, all residential companies are selected.

[…]

4 Definitions

OLD

“Solactive – B-BRE Residential Real Estate Index Universe” in respect of a Selection Day are companies that fulfill the following criteria:

  1. Listing on a US or European stock exchange.
  2. Exchange Traded Products (ETP) will be used for security selection. European securities must be a component of IFEU ETF as of the last Business Day in December of the preceding year, US securities must be a component of VNQ ETF as of the last Business Day in December of the preceding year.
  3. Only residential companies are eligible for inclusion.
  4. A security must be listed as common stock or Real Investment Trust [REIT].
  5. Minimum Market Capitalization of USD 100 million.
  6. Minimum Average Daily Value Traded over the previous 3 months of at least USD 1 million.

[…]

NEW

“Solactive – B-BRE Residential Real Estate Index Universe” in respect of a Selection Day are companies that fulfill the following criteria:

  1. Listing on a US or European stock exchange.
  2. Exchange Traded Products (ETP) will be used for security selection. European securities must be a component of D5BK ETF as of the last Business Day in December of the preceding year, US securities must be a component of VNQ ETF as of the last Business Day in December of the preceding year.
  3. Only residential companies are eligible for inclusion.
  4. A security must be listed as common stock or Real Investment Trust [REIT].
  5. Minimum Market Capitalization of USD 100 million.
  6. Minimum Average Daily Value Traded over the previous 3 months of at least USD 1 million.

[…]

 

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.