Announcement – Methodology Change | Several Solactive Indices | Effective date 05/24/2024

NAME

Today, on 04/10/2024, Solactive announces the following changes to the methodology of the following index/Indices (the ‘Affected Index/Indices’):

Rationale for Methodology Change

Solactive has determined to make adjustments on the current methodology wording to decrease ambiguities and further align with the standard wording of Solactive Indices and the way the selection procedure is performed. More specifically this relates to the definition of requirements a company must reflect to be in line with the thematic scope of the Indices as well as the inclusion of the Market Watch in the corresponding methodologies.

Please note that these changes do not alter the current selection procedure in any way but serve as a clarification of the methodologies.

The specific changes are as reflected below.

Changes to the Index Guideline

Solactive MLP Infrastructure Index:

Section 2.1. INDEX UNIVERSE REQUIREMENTS

From:

[…]

2) Structured as Master Limited Partnership, taxed as partnership, or a Master Limited Partnership
which is taxed as a corporation
3) Business focus on owning and operating assets used in energy logistics, including, but not limited

[…]

To:

[…]

2) Part of the MARKET WATCH for the SOLACTIVE MLP INFRASTRUCTURE INDEX which includes companies structured as Master Limited Partnership, taxed as partnership, or a Master Limited Partnership
which is taxed as a corporation with a business focus on owning and operating assets used in energy logistics, including, but not limited to, pipelines, storage facilities, compression services, marketing and distribution and other assets used in transporting, storing, gathering, and processing natural gas, natural gas liquids, crude oil or refined products, as reflected by publicly reported activities and the revenues generated or expected to be generated within these areas.

[…]

Adding to Section 6. DEFINITIONS:

“MARKET WATCH” is an announcement of a list of companies/securities which are intended to contribute to the creation of the Index Universe. It is compiled by all companies deemed to have their operational focus in line with the Scope of the Index. The Market Watch will be officially published and communicated on the Solactive website ten to five Business Days before the Selection Day and may be subject to updates.

Solactive Social Media Total Return Index:

Section 2.1. INDEX UNIVERSE REQUIREMENTS

From:

[…]

2) Significant business operations in social media industry: significant revenues are generated or expected to be generated in the future in activities related to social networking, file sharing and other web-based media applications and or closely related activities.

[…]

To:

[…]

2) Part of the MARKET WATCH for the SOLACTIVE SOCIAL MEDIA TOTAL RETURN INDEX which includes companies with a business focus within the social media industry or closely related activities ((i.e. social networking, file sharing and other web based media applications), as reflected by publicly reported activities and the revenues generated or expected to be generated within these areas.

[…]

Adding to Section 6. DEFINITIONS:

“MARKET WATCH” is an announcement of a list of companies/securities which are intended to contribute to the creation of the Index Universe. It is compiled by all companies deemed to have their operational focus in line with the Scope of the Index. The Market Watch will be officially published and communicated on the Solactive website ten to five Business Days before the Selection Day and may be subject to updates.

Solactive Global Copper Miners Total Return Index / Solactive Global Copper Miners Total Return v2 Index:

Section 2.1. INDEX UNIVERSE REQUIREMENTS

From:

[…]

2) Significant business operations in copper mining industry: significant revenues are generated or expected to be generated in the future either from copper mining or a closely related activities (i.e. exploration and refining of copper).

[…]

To (only affects Solactive Global Copper Miners Total Return Index):

[…]

2) Part of the MARKET WATCH for the SOLACTIVE GLOBAL COPPER MINERS INDEX which includes companies with a business focus within the copper mining industry or closely related activities, as reflected by publicly reported activities and the revenues generated or expected to be generated within these areas (i.e. exploration and refining of copper).

[…]

Adding to Section 6. DEFINITIONS (affects Solactive Global Copper Miners Total Return Index and Solactive Global Copper Miners Total Return v2 Index):

“MARKET WATCH” is an announcement of a list of companies/securities which are intended to contribute to the creation of the Index Universe. It is compiled by all companies deemed to have their operational focus in line with the Scope of the Index. The Market Watch will be officially published and communicated on the Solactive website ten to five Business Days before the Selection Day and may be subject to updates.

Solactive Global Silver Miners Total Return Index / Solactive Global Silver Miners Total Return v2 Index:

Section 2.1. INDEX UNIVERSE REQUIREMENTS

From:

[…]

2) Significant business operations in silver mining industry: significant revenues are generated or expected to be generated in the future either from silver mining or closely related activities (i.e. exploration and refining of silver).

[…]

To:

[…]

2) Part of the MARKET WATCH for the SOLACTIVE GLOBAL SILVER MINERS TOTAL RETURN INDEX which includes companies with a business focus within within the silver mining industry or closely related activities, as reflected by publicly reported activities and the revenues generated or expected to be generated within these areas (i.e. exploration and refining of silver).

[…]

Adding to Section 6. DEFINITIONS:

“MARKET WATCH” is an announcement of a list of companies/securities which are intended to contribute to the creation of the Index Universe. It is compiled by all companies deemed to have their operational focus in line with the Scope of the Index. The Market Watch will be officially published and communicated on the Solactive website ten to five Business Days before the Selection Day and may be subject to updates.

Solactive Global Gold Explorers & Developers Total Return Index:

Section 2.1. INDEX UNIVERSE REQUIREMENTS

From:

[…]

3) GOLD COMPANY can be defined as an explorer or developer. This implies that a GOLD COMPANY is either:
a) Primarily involved in gold mining projects where the decision to produce gold from the respective mine has not been made yet because the amount of gold and its extraction are still to be explored or the financing is not set yet OR
b) Primarily involved in the exploration of gold mining projects based on the latest available gold production data, where for new INDEX COMPONENTS must produce less than 500,000 ounces of gold per year and for existing INDEX COMPONENTS must produce less than 650,000 ounces of gold per year.
c) Companies that are mainly active in the streaming and royalty business are excluded from the definition of an explorer.

[…]

To:

[…]

Part of the MARKET WATCH for the SOLACTIVE GLOBAL GOLD EXPLORERS & DEVELOPERS TOTAL RETURN INDEX which includes GOLD COMPANIES that can be defined as an explorer or developer based on the following criteria:
a) Primarily involved in gold mining projects where the decision to produce gold from the respective mine has not been made yet because the amount of gold and its extraction are still to be explored or the financing is not set yet OR
b) Primarily involved in the exploration of gold mining projects based on the latest available gold production data, where for new INDEX COMPONENTS must produce less than 500,000 ounces of gold per year and for existing INDEX COMPONENTS must produce less than 650,000 ounces of gold per year.
c) Companies that are mainly active in the streaming and royalty business are excluded from the definition of an explorer.

[…]

Adding to Section 6. DEFINITIONS:

“MARKET WATCH” is an announcement of a list of companies/securities which are intended to contribute to the creation of the Index Universe. It is compiled by all companies deemed to have their operational focus in line with the Scope of the Index. The Market Watch will be officially published and communicated on the Solactive website ten to five Business Days before the Selection Day and may be subject to updates.

Solactive Global Lithium Index / Solactive Global Lithium v2 Index:

Section 2.1. INDEX UNIVERSE REQUIREMENTS

From:

[…]

2) Business operations in lithium mining (MINING COMPANY) or production of lithium batteries (BATTERY COMPANY) in which significant revenues are generated or expected to be generated either from a relative (i.e. in terms of the company’s total revenues) or absolute (i.e. in terms of the absolute size of the revenues, non-pure play company) point of view.

[…]

To:

[…]

2) Part of the Market Watch for the Solactive Global Lithium Index which includes companies with a business focus on lithium mining (MINING COMPANY) or the production of lithium batteries (BATTERY COMPANY), as reflected by publicly reported activities and the revenues generated or expected to be generated within these areas either from a relative (i.e. in terms of the company’s total revenues) or absolute (i.e. in terms of the absolute size of the revenues, non-pure play company) point of view.

Adding to Section 6. DEFINITIONS:

“MARKET WATCH” is an announcement of a list of companies/securities which are intended to contribute to the creation of the Index Universe. It is compiled by all companies deemed to have their operational focus in line with the Scope of the Index. The Market Watch will be officially published and communicated on the Solactive website ten to five Business Days before the Selection Day and may be subject to updates.

Solactive MLP & Energy Infrastructure Index:

Section 2.1. INDEX UNIVERSE REQUIREMENTS

From:

[…]

2) Structured as Master Limited Partnership, an affiliate corporation of an MLP company or a midstream Energy Infrastructure Company
3) Business focus on owning and operating assets used in midstream energy logistics, including, but not limited to, pipelines, storage facilities and other assets used in transporting, storing, gathering, and processing natural gas, natural gas liquids, crude oil or refined products

[…]

To:

[…]

2) Part of the MARKET WATCH for the SOLACTIVE MLP & ENERGY INFRASTRUCTURE INDEX which includes companies structured as Master Limited Partnership, an affiliate corporation of an MLP company or a midstream Energy Infrastructure Company with a business focus on owning and operating assets used in energy logistics, including, but not limited to, pipelines, storage facilities and other assets used in transporting, storing, gathering, and processing natural gas, natural gas liquids, crude oil or refined products, as reflected by publicly reported activities and the revenues generated or expected to be generated within these areas. 

[…]

Adding to Section 6. DEFINITIONS:

“MARKET WATCH” is an announcement of a list of companies/securities which are intended to contribute to the creation of the Index Universe. It is compiled by all companies deemed to have their operational focus in line with the Scope of the Index. The Market Watch will be officially published and communicated on the Solactive website ten to five Business Days before the Selection Day and may be subject to updates.

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.