Methodology Change | Several IQ Candriam Indices | Effective Date 18/08/2023

Today, on 04/08/2023, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):

Rationale for Methodology Changes

Solactive has determined that due to the US market is heavily weighted towards mega caps which are concentrated in technology, and the index is weighted according to free float market cap, a new rule is to be added to reduce concentration in individual sectors. This is extended to all IQ indices to maintain consistency across the group. The Affected Indices will have a new rule added that the sum of the components with weights above 5% cannot exceed 25% and the excess weight will be redistributed proportionally among all index components with a weight of less than 5%.

Additionally, affecting the indices that rebalance according to the Solactive Global Benchmark Series (‘GBS Indices”) as the starting universe, Solactive has determined that the eligibility criteria of GBS Indices will be applied to the affected indices. This is due to the Affected Indices being rebalanced on a schedule of March, June, September, and December while the GBS Indices rebalance on a schedule of February, May, August, and November. The one-month gap between rebalancing of the Affected Indices and underlying GBS Indices can have corporate actions that cause unintended securities to enter the selection universe. This change will allow the eligibility criteria to remain constant between rebalances.

Changes to the Index Guideline

Change 1
Affected Indices: ALL INDICES
The following Methodology changes will be implemented in the following points of the Index Guideline:

2.3          WEIGHTING OF THE INDEX COMPONENTS

ADDITION

–               Cumulative Weights of the INDEX COMPONENTS in excess of 5% are capped at 25% and the excess weight will be redistributed proportionally among all INDEX COMPONENTS with a weight of less than 5%.

Change 2
Affected Indices:

The following Methodology changes will be implemented in the following points of the Index Guideline:

2.2          SELECTION OF THE INDEX COMPONENTS

ADDITION

• Only securities listed on an eligible exchange in the United States are eligible for inclusion (New York Stock Exchange, NYSE MKT LLC., NYSE Arca, NASDAQ, Investors Exchange, BATS Exchange).
• Only securities trading in USD are eligible for inclusion.
• Only common stocks and REITs are eligible for inclusion.

Change 3

Affected Indices:

The following Methodology changes will be implemented in the following points of the Index Guideline:

2.2          SELECTION OF THE INDEX COMPONENTS

ADDITION

• Only securities listed in one of the Eligible Exchanges are eligible for inclusion.
• Only common stocks and REITs are eligible for inclusion.

7              LIST OF ELIGIBLE EXCHANGES