Methodology Change | Cannabis Index | Effective Date 26/09/2019

Today, on the 12/09/2019, Solactive announces the following changes to the methodology of the following index (the ‘Affected Index’):

Rationale for methodology change

Solactive has determined that the current Guideline lacks clarity in the treatment of Index Components which are no longer in compliance with the legal considerations described in the Index Methodology. Therefore, more detailed wording is added to clarify ‘Extraordinary Adjustment’.  

Changes to the Index Guideline

The following change is made in the Index Methodology with respect to second paragraph of Section 2.3 ‘Extraordinary Adjustment’:

From:

“If Solactive determines that a company that is a current index constituent is no longer in compliance with the legal considerations described in this document, the Index Committee may treat this as an Extraordinary Corporate Action and has the ability to remove the index constituent outside of the regular rebalance schedule for the index.”

To:

“If Solactive determines that a company that is a current Index Component is no longer in compliance with the legal considerations described in this document, i.e. Section 2.1 and the description of the “Index Universe” in Section 4., Solactive will remove the Index Component outside of the regular rebalance schedule from the Index. The Index Component will be removed from the Index on the effective date as announced by Solactive. The weight of the removed Index Component based on its Trading Price on the last Trading Day before the effective date will be distributed pro rata across the remaining Index Components.”

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.