Methodology Change | Solactive Global Lithium 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 lithium mining, exploration or a closely related activity and/or production of lithium batteries. In order to respond swiftly to the changes in the lithium 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):

[…]

4. Average Daily Traded Volume over all national exchanges within the listed country of at least 200,000 USD in the last three months for companies that are not in the INDEX as of the SELECTION DAY, and 100,000 USD for companies that are in the INDEX as of the SELECTION DAY.

[…]

To (new version):

[…]

4. Average Daily Traded Volume over all national exchanges within the listed country of at least 200,000 USD over the applicable TRADING MEASUREMENT PERIOD for companies that are not in the INDEX as of the SELECTION DAY, and 100,000 USD for companies that are in the INDEX as of the SELECTION DAY.

5. 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 2.4 – CONTINUOUS LISTING STANDARS

From (old version):

[…]

3) The maximum weight of Index Components with a market liquidity below 250,000 shares traded (monthly average of the previous 6 months) and USD 25m monthly average daily traded value (monthly average of the previous 6 months) must not exceed 30%. If this criterion is breached, the stocks with a market liquidity below 250,000 shares traded (monthly average of the previous 6 months) and USD 25m monthly average daily traded value (monthly average of the previous 6 months) will be proportionally capped at 25% and the excess weight is redistributed to other non-capped stocks.

[…]

To (new version):

3) The maximum weight of Index Components with a market liquidity below 250,000 shares traded (monthly average of the previous 6 months or available history if shorter) and USD 25m monthly average daily traded value (monthly average of the previous 6 months or available history if shorter) must not exceed 30%. If this criterion is breached, the stocks with a market liquidity below 250,000 shares traded (monthly average of the previous 6 months or available history if shorter) and USD 25m monthly average daily traded value (monthly average of the previous 6 months or available history if shorter) will be proportionally capped at 25% and the excess weight is redistributed to other non-capped stocks.

[…]

2. Section 6 – DEFINITIONS

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.