Methodology change | Solactive China Cloud Computing Indices | Effective Date 7 May 2019
Today, on the 2nd of May, 2019, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):
Solactive China Cloud Computing Index PR (ISIN: DE000SLA7232)
Solactive China Cloud Computing Index NTR (ISIN: DE000SLA7240)
Solactive China Cloud Computing Index TR (ISIN: DE000SLA7257)
Rationale for methodology change
Solactive has determined that the current weighting mechanism of the Affected Indices may lead to an imbalanced representation of the market the Affected Indices are intended to reflect. Hence, the modified market capitalization mechanism will be removed in order to provide for a weighting mechanism based on simple market capitalization. This change means that the market composition expressed in the market capitalization of the individual index components and their interrelationships will be reflected more precisely in the Affected Indices. The change is reflected in the description of the weighting mechanism in section 1.5 of the index Guideline of the Affected Indices.
Changes to the Index Guideline
The wording in Section 1.5 of the index guideline will be replaced by the following wording:
“On each Selection Day, the components of the Index are weighted according to Free Float Market Capitalization such that the weight of the company does not exceed 6%. The excess weight that results from capping is redistributed in proportion to the Free Float Market Capitalization of the unaffected components of 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.