Methodology Change | UBS LGBT Employment Equality Index, UBS LGBT Employment Equality Index TR

Today, on 4th of June, 2019, following a market consultation, Solactive announces the following changes to the methodology of the   following indices. These changes will become effective on 1st of July, 2019:

Changes to the Index Guideline

1. The definitions of “Selection Day” and “Ordinary Review Implementation Day” will be removed. Any reference to the “Selection Day” in the index guidelines shall be replaced by reference to the “Ordinary Review Day”. Any reference to the “Ordinary Review Implementation Day” in the index guidelines shall be replaced by reference to the “Adjustment Day”.
2. The definitions of “Ordinary Review Day” and “Adjustment Day” shall be altered from:

 “Ordinary Review Day” is the 2nd Friday April, July, and October.

“Adjustment Day” is the 3rd Friday in January.

to:

“Ordinary Review Day” is the 2nd Friday January, April, July, and October.

“Adjustment Day” is the 3rd Friday in January, April, July, and October

3. Section 2.1 shall be altered from

The initial composition of the Index as well as any ongoing adjustment is based on the following rules: On the Selection Days, Solactive AG defines the Index Universe as described in section 4 of this document.

All companies in the Index Universe which have scored 85 or higher on the Human Rights Campaign Foundation Corporate Equality Index as of the Selection Day are selected as final Index Components.

If the selection results in a final number of Index Components below 40, additional companies will be selected based on the rules outlined below until a total number of 40 Index Components has been reached:

1. Companies that have been part of the index as of the last rebalancing and are not part of the current selection will be selected based on highest Market Capitalization
2. If the rule above does not result in the required 40 Index Components, additional constituents will be selected from the Index Universe based on highest Market Capitalization

to:

The initial composition of the Index as well as any ongoing adjustment is based on the following rules: On each Ordinary Review Day Solactive determines whether a new annual HRC CEI has been published by the Human Rights Campaign Foundation within 30 business days before the Ordinary Review Day.

(A) If this is the case, Solactive AG defines the Index Universe as described in section 4 of this document

All companies in the Index Universe which have scored 85 or higher on the Human Rights Campaign Foundation Corporate Equality Index as of the Selection Day are selected as final Index Components.

If the selection results in a final number of Index Components below 40, additional companies will be selected based on the rules outlined below until a total number of 40 Index Components has been reached:

1. Companies that have been part of the index as of the last rebalancing and are not part of the current selection will be selected based on highest Market Capitalization
2. If the rule above does not result in the required 40 Index Components, additional constituents will be selected from the Index Universe based on highest Market Capitalization

(B) If this is not the case, Solactive reviews current components only based on the latest available HRC CEI (which might contain revisions, but is not published as a new annual HRC CEI). Any index component scoring lower than 85 on the HRC CEI will be deleted from the index and its weight will be redistributed proportionally across remaining Index Components. Any such change will become effective on the Adjustment Day.

4. Section 2.2 shall be adjusted from:

The composition of the Index is adjusted annually in January. The composition of the Index is reviewed on the Selection Day and necessary changes are announced.

The first adjustment will be made in January 2018 based on the Trading Prices of the Index Components on the Adjustment Day.

 In addition, the composition of the Index will be reviewed on each Ordinary Review Day. Any Index Component scoring lower than 85 on the Human Rights Campaign Foundation Corporate Equality Index as of the Ordinary Review Day will be deleted from the index and its weight will be redistributed proportionally across remaining Index Components. Any such change will become effective on the Ordinary Review Implementation Day.

to:

The composition of the Index is adjusted on the Adjustment Day. The composition of the Index is reviewed on the Ordinary Review Day and necessary changes are announced.

The first adjustment will be made in January 2018 based on the Trading Prices of the Index Components on the Adjustment 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.