Methodology Change | Solactive UBS Development Bank Bond Index Family | Effective Date 23th October 2018

Today, on 23th October 2018, Solactive announces the following changes to the methodology of Solactive UBS Development Bank Bond Index Family:

For transparency purposes the Index Committee of Solactive has taken the decision to specify the definitions of Development Bank and Multilateral Development Bank used by the index family.

Old definitions look the following way:

  • “Development Bank” is any regional, national or multilateral development bank with a loan book exposure to Emerging Market countries (Emerging Market countries as defined by Solactive AG).
  • “Multilateral Development Bank” is defined as an international financial institution created for purpose of economic development and whose shareholders list includes all G7 countries.

The following change to the definitions will be implemented:

  • “Development Bank” is any government related or government backed financial institution with a focus on official development assistance and a minimum loan book exposure published or reported by the issuer of 25% to a portfolio of diversified Emerging Market countries. Emerging Market country will be defined separately in the annex of the guideline as every country that is not defined as Developed Country by Solactive or not part of the Eurozone.
  • “Multilateral Development Bank” is a Development Bank whose shareholders list includes among other members all G7 countries.

The Index Committee as well revised the timing of annual issuers review. In order to minimize the lag between publications by the relevant institutions and issuer list adjustment. The Index Committee has agreed to shift the issuer analysis to the end of October (previously January). The new issuer list will be applied  in the November selection.

The changes of the index guideline become effective on 23 October 2018. The amended index guideline is available under: www.solactive.com.