Methodology Change | Solactive Global Silver Miners Total Return Index | Effective Date 14th October 2019
Today, on the 26th September 2019, Solactive announces the following changes to the methodology of the following index (the ‘Affected Index‘):
|Solactive Global Silver Miners Total Return Index||.SOLGLOSI||DE000A1DKEB9|
Rationale for methodology change
Solactive has determined that the current methodology of the Affected Index does not allow the stronger index components ranked according to market capitalization to be sufficiently taken into account in the weighting.
Taking this into account, the oversight committee has decided to amend chapter 1.5 “Weighting” of the methodology of the Affected Index as reflected in the following section “Changes to the Index Guideline”:
Changes to the Index Guideline
The complete section of section 1.5 is replaced with the following:
“On each Selection Day each Index Component of the Solactive Global Silver Miners is ranked according its Free Float Market Capitalization and weighted in four steps:
- Each Index Component is weighted proportionally according to its Free Float Market Capitalization.
- The Percentage Weight of a single Index Component is capped at 22.5%. The excess weight is allocated proportionally to all Index Components whose Percentage Weight is not capped.
- The weights of the top ranked Index Components with a weight above 5% will be aggregated. This aggregated weight has a max cap of 48%. The last Index Component that would add up to 48% or would exceed 48%, will receive an index weight of the maximum of
- 48% minus the sum of weights of the higher ranked Index Components or
- The Percentage Weight of all other Index Components is capped at 4.75%. The excess weight is allocated proportionally to all Index Components whose Percentage Weight is less than 4.75%.
The new index composition and weightings are implemented after the close of trading on the Adjustment Day. The capping methodology may be amended by the Committee from time to time to ensure appropriate index representation and index compliance with financial product regulations in the United States.
The cumulative Percentage Weight of the Index Components which do not fulfil the Liquidity Criterion is capped at 10% on the Selection Days. The excess weight is allocated proportionally to all Index Components whose Percentage Weight is not capped.
The calculated Number of Shares as of the Selection Day are used and will be implemented as of the close on the Adjustment Day. To match the correct index level on the Adjustment Day, the Number of Shares will be multiplied with a constant Correction Factor, i.e. the Number of Shares will be up scaled or down scaled.
The Number of Shares as of the Selection Date are adjusted for any relevant corporate actions between Selection Day and Adjustment Day. This only relates to corporate actions that have a direct impact on the price and shares (i.e. stock splits, stock dividends, rights issues).
For clarification: The calculation of the weighting is based on the close market data as of 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. The amended version of the index guideline will be available on the effective date.