UPDATE: Methodology Change | Solactive European High Yield Bond Funds III 4% RC Index | Effective Date 03/11/2025
UPDATE: Today, on the 31/10/2025, Solactive announces the following changes to the methodology of the following Index (the ‘Affected Index’):
|
Solactive European High Yield Bond Funds III 4% RC Index |
.SOLAHYE4 |
DE000SL0QDA4 |
Rationale for Methodology Change
Solactive has determined that the mutual funds that are currently in the composition of the indices, can no longer be held on trading books of various financial entities, as they do not satisfy the replicability and transparency criteria required for eligibility under the Fundamental Review of the Trading Book (FRTB) framework. Maintaining exposure to this fund would result in significantly higher capital requirements for the hedging entity replicating the product, thereby generating an adverse economic impact.
Changes to the Index Guideline
1. Index Selection
1.1. Selection of the Index Components
Change:
The Index is based on the following Mutual Fund basket since Basket Switch Date, (each referred as “Fund” or “Index Component”, together referred as the “Basket”):
|
Name |
Ticker |
ISIN |
Currency |
Start Date |
Weight |
|
Candriam Bonds Euro High Yield |
DEXHYLN LX Equity |
LU0144751095 |
EUR |
2015-11-26 |
½ |
|
BNP Paribas Funds – Euro High Yield Bond |
FOCHYEC LX Equity |
LU0823380802 |
EUR |
2015-11-26 |
0 |
|
Barings European High Yield Bond Fund |
BAEHEEA ID Equity |
IE00BC1J0L00 |
EUR |
2015-11-26 |
½ |
The Index was based on the following Mutual Fund basket between Start Date and Basket Switch Date:
|
Name |
Ticker |
ISIN |
Currency |
Start Date |
Weight |
|
Candriam Bonds Euro High Yield |
DEXHYLN LX Equity |
LU0144751095 |
EUR |
2015-11-26 |
1/3 |
|
BNP Paribas Funds – Euro High Yield Bond |
FOCHYEC LX Equity |
LU0823380802 |
EUR |
2015-11-26 |
1/3 |
|
Barings European High Yield Bond Fund |
BAEHEEA ID Equity |
IE00BC1J0L00 |
EUR |
2015-11-26 |
1/3 |
6. Definitions
Addition:
“Basket switch date” shall mean 3rd of November 2025
UPDATE (23/10/2025): Please note that the below mentioned change of index methodology has been put on hold due to concern from market participants. We will continue to calculate the index based on the currently available methodology.
Today, on the 21/10/2025, Solactive announces the following changes to the methodology of the following Index (the ‘Affected Index’):
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Rationale for Methodology Change
Solactive has determined that the mutual funds that are currently in the composition of the indices, can no longer be held on trading books of various financial entities, as they do not satisfy the replicability and transparency criteria required for eligibility under the Fundamental Review of the Trading Book (FRTB) framework. Maintaining exposure to this fund would result in significantly higher capital requirements for the hedging entity replicating the product, thereby generating an adverse economic impact.
Changes to the Index Guideline
For the details on the changes to the index guideline, please see attached document.