Methodology Change | Solactive Global Copper Miners Total Return v2 Index | Effective Date 26 January 2022

Today, on the 12th of January 2022, Solactive announces the following changes to the methodology of the following index (the ‘Affected Index’):

Rationale for Methodology Change

The Affected Index provide exposure to companies that have business operations  in the field of copper mining. In order to respond swiftly to the changes in the mining sector, Solactive determined to include Initial Public Offerings (IPOs) on the next regular semi-annually rebalancing even if they have not traded for the full period. Therefore the trading period requirements will be adjusted for IPOs, taking into account the importance of the most relevant IPOs.

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):

1. Section 2.1. – INDEX UNIVERSE REQUIREMENTS

From (old version):

[…]

Average Daily Value Traded over 3 months prior to and including the Selection Day of at least USD 500,000 for companies which are not Index Components on the respective Selection Day, at least USD 250,000 for companies which are Index Components on the respective Selection Day.

Monthly Trading Volume of at least 75,000 shares in each of the six months prior to and including the Selection Day.

[…]

To (new version):

[…]

Average Daily Value Traded over the TRADING MEASUREMENT PERIOD of at least USD 500,000 for companies which are not Index Components on the respective Selection Day, at least USD 250,000 for companies which are Index Components on the respective Selection Day.

Monthly Trading Volume of at least 75,000 shares in each of the six months prior to and including the Selection Day or available history if shorter.

To be considered for inclusion, initial public offerings (“IPOs”) with less than three calendar months of trading history as of the SELECTION DAY must have been listed at least 10 calendar days prior to the SELECTION DAY, if considered as SIGNIFICANT IPO, and three calendar months prior to the SELECTION DAY, in the case of other IPOs.

[…]

2. Section 2.3. – WEIGHTING OF THE INDEX COMPONENTS

From (old version):

[…]

3) The maximum weight of Index Components with an Average Monthly Trading Volume below 250,000 shares traded over 6 months prior to and including the Monitoring Selection Day and an Average Monthly Value Traded below USD 25 million over 6 months prior to and including the Monitoring Selection Day must not exceed 30%. If this criterion is breached, the Index Components with an Average Monthly Trading Volume below 250,000 shares traded over 6 months prior to and including the Monitoring Selection Day  and an Average Monthly Value Traded below USD 25 million over 6 months prior to and including the Monitoring Selection Day will be proportionally capped at 25%.

[…]

To (new version):

[…]

3) The maximum weight of Index Components with an Average Monthly Trading Volume below 250,000 shares traded over 6 months prior to and including the Monitoring Selection Day or available history if shorter and an Average Monthly Value Traded below USD 25 million over 6 months prior to and including the Monitoring Selection Day or available history if shorter must not exceed 30%. If this criterion is breached, the Index Components with an Average Monthly Trading Volume below 250,000 shares traded over 6 months prior to and including the Monitoring Selection Day or available history if shorter and an Average Monthly Value Traded below USD 25 million over 6 months prior to and including the Monitoring Selection Day or available history if shorter will be proportionally capped at 25%.

[…]

4. Section 6 – DEFINITIONS

From (old version):

“Relevant Trading Value” is the Average Daily Value Traded (in USD) over 3 months prior to and including the Selection Day.

To (new version):

“Relevant Trading Value” is the Average Daily Value Traded (in USD) over the applicable Trading Measurement Period.

The following two definitions will be added:

“Significant IPO” is each IPO with a company level total market capitalization greater than the company level total market capitalization of at least 50% of the current Index Components as of the previous Selection Day.

The “Trading Measurement Period” in respect of a security as of the applicable SELECTION DAY is:

1. In the case of a company that has completed an initial public offering (“IPO”) less than three months prior to the SELECTION DAY that are SIGNIFICANT IPOs, the period from the security’s first trading day to the SELECTION DAY;
2. In the case of all other companies, the three months prior to the Selection Day.

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.