Methodology Change | Solactive U.S. Founder-Run Companies Index | Effective Date 16/06/2023
Today, on the 05/06/2023, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):
|
NAME |
RIC |
ISIN |
|
Solactive U.S. Founder-Run Companies Index |
.SOLUSFRC |
DE000SLA21M5 |
Rationale for Methodology Change
Solactive AG decided to streamline the implementation procedure for the quarterly review of the Solactive U.S. Founder Run Companies Index with the procedure for the ordinary Index Rebalance, i.e. by implementing the shares as determined on the Selection Day and Review Day based on the weights calculated on the Selection Day and Review Day. This change will simplify the rebalance procedure and decrease the risk of potential incorrect adjustments.
Changes to the Index Guideline
Section 2.3 Weighting of the Index Components
“[….]
From:
On each Selection Day each Index Component of the Solactive U.S. Founder-Run Companies Index is weighted equally as of the close of the Selection Day.
In case a company is removed at the quarterly Review Day (Section 3.2), the replacement company will be added with the same weight as of the close of the Review Adjustment Day. In case there is more than one change at the Review Adjustment Day, the aggregate weight of the stocks to be excluded will be allocated equally to the replacement companies.
If the sum of company weights belonging to one Sector in the Solactive U.S. Founder-Run Companies Index exceeds the respective Sector weight in the Solactive U.S. Broad Market Index by more than 10 percentage points as of the Index Selection Day, the smallest Market Capitalization company in this Sector is replaced by the next largest stock of another Sector from the Selection Pool whose Sector weight does not exceed its weight in the Solactive U.S. Broad Market Index by more than 10 percentage points.
[…]”
To:
“[….]
On each Selection Day each Index Component of the Solactive U.S. Founder-Run Companies Index is weighted equally as of the close of the Selection Day.
In case a company is removed at the quarterly Review Day (Section 3.2), the replacement company will be added on the close of the Review Adjustment Day by implementing the shares as determined on the Review Day based on the weights calculated on the Review Day. In case there is more than one change at the Review Day, the aggregate weight of the stocks to be excluded will be allocated equally to the replacement companies.
If the sum of company weights belonging to one Sector in the Solactive U.S. Founder-Run Companies Index exceeds the respective Sector weight in the Solactive U.S. Broad Market Index by more than 10 percentage points as of the Index Selection Day, the smallest Market Capitalization company in this Sector is replaced by the next largest stock of another Sector from the Selection Pool whose Sector weight does not exceed its weight in the Solactive U.S. Broad Market Index by more than 10 percentage points.
[…]”
Section 3.1 Ordinary Rebalance
“[….]
From:
In order to reflect the new selection of the Index Components determined on the Selection Day (in accordance with Section 2.1 and 2.2) the Index is adjusted on the Adjustment Day and Review Adjustment Day after the Close of Business.
Solactive AG shall publish any changes made to the Index composition with sufficient notice before the Review Adjustment Day.
This is carried out by implementing the shares as determined on the Selection Day based on the weights calculated on the Selection Day.
For more information on the rebalance procedure please refer to the Equity Index Methodology, which is incorporated by reference and available on the Solactive website: https://www.solactive.com/documents/equity-index-methodology/.
Solactive will publish any changes made to the Index Components with sufficient notice before the Rebalance Day on the Solactive website under the section “Announcements”, which is available at https://www.solactive.com/news/announcements/.
To:
“[….]
In order to reflect the new selection of the Index Components determined on the Selection Day (in accordance with Section 2.1 and 2.2) the Index is adjusted on the Adjustment Day and Review Adjustment Day after the Close of Business.
Solactive AG shall publish any changes made to the Index composition with sufficient notice before the Adjustment Day and Review Adjustment Day.
This is carried out by implementing the shares as determined on the Selection Day and Review Day.
based on the weights calculated on the Selection Day and Review Day.
For more information on the rebalance procedure please refer to the Equity Index Methodology, which is incorporated by reference and available on the Solactive website: https://www.solactive.com/documents/equity-index-methodology/.
Solactive will publish any changes made to the Index Components with sufficient notice before the Rebalance Day on the Solactive website under the section “Announcements”, which is available at https://www.solactive.com/news/announcements/.
[…]”
Defined terms used in this Announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Index.