Methodology Change | Solactive Global Equity Index | Effective Date 29/06/2021

Today, on 16.06.2021, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for Methodology Change

Solactive has determined that the Affected Indices currently do not include a liquidity buffer which exists in other indices of the same broad family. As per this buffer rule, an existing security listing in the index, while still meeting the minimum liquidity threshold, will be retained in the index and will not be replaced by an alternative listing of the same company although the existing listing may not be the most liquid. This buffer rule helps avoid unnecessary turnover and transaction costs. Solactive deems this buffer rule necessary to be implemented for the Affected Indices.

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):

Section 2.1

From (old version):

[…]

• For each company keep only the most liquid share line and most liquid listing.

[…]

To (new version):

[…]

• For each company keep only the most liquid share line and most liquid listing.

Exception represents the case when there is an existing share already in the index with a listing which is not the most liquid, but still falls above the minimum liquidity threshold of EUR 25 million. In this case the existing listing remain in the index and not be replaced by the alternative listing, which might be more liquid on the given selection date, in order to avoid unnecessary turnover and transaction costs.

[…]

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. The amended version of the index guideline will be available on the effective date.