Overview
Announcements

Methodology Change | Solactive 5G ESG Index | Effective Date 22/03/2022

Today, on the 08/03/2022, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

NAME

RIC

ISIN

Solactive 5G ESG EUR Index PR

Solactive 5G ESG EUR Index NTR

Solactive 5G ESG EUR Index GTR

Solactive 5G ESG EUR Index AR

Solactive 5G ESG EUR Index 5% AR

Solactive 5G ESG USD Index PR

Solactive 5G ESG USD Index NTR

Solactive 5G ESG USD Index GTR

Solactive 5G ESG USD Index AR

Solactive 5G ESG USD Index 5% AR

.S5GESGEP

.S5GESGEN

.S5GESGET

.S5GESGE3

.S5GESGE5

.S5GESGUP

.S5GESGUN

.S5GESGUT

.S5GESGU3

.S5GESGU5

DE000SL0DEJ1

DE000SL0DEK9

DE000SL0DEL7

DE000SL0DEM5

DE000SL0DF38

DE000SL0DEN3

DE000SL0DEP8

DE000SL0DEQ6

DE000SL0DER4

DE000SL0DF20

 

Rationale for Methodology Change

The Indices provide an ESG screened version of their parent index, the “Solactive 5G Index” (Parent Index). The Parent Index is used as a starting universe and companies that are not compliant with the UN Global Compact Principles are excluded. The Rebalance Day of the Parent Index is the second Friday in January and July, the Selection Day is the first Friday in January and July. The Rebalance Day of the Indices is the third Friday in April and October with Selection Day 10 Business Days prior to the Rebalance Day. One of the eligibility criteria for the securities to be included in the Parent Index is the requirement to have an Average Daily Value Traded in the last six months of at least USD 5,000,000. This criterion is not applied in the selection of securities of the Indices. In the three months between the selection of the Parent Index and the Indices, the liquidity of a security in the Parent Index might change (e.g. due to market movements) which might lead to an inclusion of an illiquid security into the Indices. To avoid issues in tracking the index due to insufficient liquidity of index constituents for the underlying products, a liquidity criterion of USD 5 million should be added to the selection process of the Indices.

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):

  • Section: 2.1. INDEX UNIVERSE REQUIREMENTS

From (old version):

The Index Universe is comprised of all financial instruments which fulfill the below requirements

 (the “Index Universe Requirements“):

  • Part/ Component of the Solactive 5G Index PR (ISIN: DE000SLA9824) on a Selection Day.

The determination of the Index Universe is fully rule-based and the Index Administrator cannot make any discretionary decisions.

To (new version):

The Index Universe is comprised of all financial instruments which fulfill the below requirements

 (the “Index Universe Requirements“):

  • Part/ Component of the Solactive 5G Index PR (ISIN: DE000SLA9824) on a Selection Day.
  • Average Daily Value Traded of at least USD 5,000,000 in the six months prior to and including the Selection Day.

The determination of the Index Universe is fully rule-based and the Index Administrator cannot make any discretionary decisions.

  • Section: 6 DEFINITIONS

The following definitions will be included.

“Average Daily Value Traded” means, in respect of an Index Component, the sum of Daily Value Traded over the specified period divided by the number of Trading Days that fall in the specified period.

“Daily Value Traded” means, in respect of an Index Component and a Trading Day, the product of (i) the Closing Price of such Index Component and (ii) the volume traded (measured as a number of shares) of such Index Component on the Exchange during such Trading 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 : 22/03/2022.