Methodology Change | Solactive Paris Aware Global Aggregate Index | Effective Date 01/03/2023


Today, on 25/11/2022, Solactive announces the following changes to the methodology of the following index (the ‘Affected Index’):




Solactive Paris Aware Global Aggregate Index



Rationale for Methodology Change

The Affected Index aims to track the performance of global investment grade corporate bonds denominated in Euro, British Pound Sterling and US Dollar and local currency, investment grade government bonds.

Solactive has determined that the following change will lead to an index composition that aligns better with a “Global Aggregate” scope that is used in the name of the Affected Index.

This change intends to enlarge the composition of the Affected Index such as to reflect a Paris Aware Global Aggregate Index more realistically, by including market segments that are growing and are likely to grow further in the near to medium future, such as bonds issued by the European Union and related institutions, international Development Banks and hard currency bonds issued by Emerging Market issuers.

The core concept will be unchanged, constructing an index that reduces carbon intensities and emissions with respect to the benchmark and over time, and observes certain sustainability criteria compliant with the Paris-aligned benchmark regulation.

Given feedback on the consultation in terms of lead time for the implementation of the changes for users of the indices, Solactive has decided to postpone the implementation to the rebalancing at end of February 2023. The proposed changes itself received overall positive feedback. Accordingly, the effective date of the proposed changes will be March 1st, 2023. The updated index guideline will be published on the Solactive website on the effective date.

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):
In section 2.1 “Selection of the Index Components”:
From (old version):
• INDEX COMPONENTS must be included either in the Solactive Paris Aligned Global Corporate Index (SOLGCPAB) or the Solactive Paris Aware Global Government Index (SOLGOVPAB)
To (new version):
• “INDEX COMPONENTS must be included in one of the following indices:
o Solactive Paris Aligned Global Corporate Extended Index (SOLGCEPAB), or
o Solactive Paris Aware Global Government Enlarged Index (SOLGOEPAB).
[…] “

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Index. The amended version of the index guideline will be available on the effective date.