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Methodology Change | Solactive Global Benchmark Series | Effective Date 06/01/2020

Today, on the 16/12/2019, Solactive announces the following changes to the methodology of the Global Benchmark Series. The change will become effective on 6th January 2020.

Rationale for methodology change

The Global Benchmark Series is designed to cover all companies in the developed and emerging market countries that fulfil the liquidity criteria outlined in the guideline document and to provide a broad representation of the global equity market. One of the liquidity criteria outlined in the guideline document is the free float percentage requirement of at least 10% (7.5%) for new (current) Index Components.

Solactive has determined to change the float percentage requirement in order to avoid a company being excluded from the index that has a low free float percentage but still belongs to the largest companies in terms of absolute float market capitalization.

Changes to the Index Guideline

The Methodology changes are implemented in the following points of the Index Guideline (ordered in accordance with the numbering of the affected sections):

  • The free float percentage requirement stated under Section 4 “Index Universe” (Tradability Requirements) of the index guideline will be changed from:
  1. Tradability Requirements:

[…]

  • New (Current) Index Components require a free float percentage of at least 10% (7.5%).

[…]

  • New Index Components require a free float percentage of at least 10%.

[…]

to

  1. Tradability Requirements:

[…]

  • New (Current) Index Components require a free float percentage of at least 10% (7.5%). In case the Free Float Market Capitalization of a security is at least USD 1,000,000,000 (750,000,000) for new (current) Index Components, the float percentage requirement is not considered.

[…]

 

  • New Index Components require a free float percentage of at least 10%. In case the Free Float Market Capitalization of a security is at least USD 1,000,000,000 for new Index Components, the float percentage requirement is not considered.

[…]

 

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.