Methodology change | Solactive Bond Guideline | Effective Date 19th November 2019

Today, on the 13^th November 2019, Solactive announces the following changes to the Bond Guideline for the indices listed below.

Rationale for the Bond Guideline change

The indices above are rules-based indices engineered to mirror the performance of the respective sovereign, local debt markets. The bonds issued under Medium-Term Note (MTN) or Euro Medium Term Note (EMTN) series don’t reflect the performance of the local markets and therefore must be excluded from the indices. The change would improve the quality of the indices and would allow to reflect the market more precisely. This change would have minor effect on the indices due to high number of index members.

Changes to the Bond Guideline

The following point will be added to the wording of “Selection Pool” in section 4.1 ‘index-specific definitions’ to the index guideline.

• The bonds issued under MTN or EMTN series are not eligible for the index.

New version:

The “Selection Pool” comprises bonds that fulfill the following conditions:

[…]

• The bonds issued under MTN or EMTN series are not eligible for the index.

[…]

The following point will be added to the wording of “Selection Pool” in section 4.1 ‘index-specific definitions’ to the index guideline for the above mentioned Indices.

• The bonds issued under MTN or EMTN series are not eligible for the index.

New version:

The “Selection Pool” comprises bonds that fulfill the following conditions:

[…]

• The bonds issued under MTN or EMTN series are not eligible for the index.

[…]

The following point will be added to the wording of “Selection Pool” in section 4.1 ‘index-specific definitions’ to the index guideline for the below mentioned Indices:

• Solactive Broad Global Developed Government Bond TR EUR Index
• Solactive Broad Global Developed Government Bond TR IG EUR Index
• Solactive Developed Europe Government Bond TR EUR Index
• The bonds issued under MTN or EMTN series are not eligible for the index.

New version:

[…]

• The bonds issued under MTN or EMTN series are not eligible for the index.

[…]

• Solactive Global Developed Government Bond TR EUR Index

This is sub-index of the Solactive Broad Global Developed Government Bond TR EUR Index and there will be no change in the definition of ‘Selection Pool’.

The following point will be added to the Selection Pool rules of the index in the section ‘2.1. SELECTION OF THE INDEX COMPONENTS’ of the guideline:

1. The bonds issued under MTN or EMTN series are not eligible for the index.

New version:

 […]

1. The bonds issued under MTN or EMTN series are not eligible for the index.

The following additional point will be added to the Selection Pool rules of the index in the section ‘2.1. SELECTION OF THE INDEX COMPONENTS’ of the guideline:

• The bonds issued under MTN or EMTN series are not eligible for the index.

New version:

[…]

• The bonds issued under MTN or EMTN series are not eligible for 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.