Methodology Change | Solactive Australian Government 7-12 Year AUD TR Index | Effective Date 1 December 2023

Today, on the 23^rd of November 2023, Solactive announces the following changes to the methodology of the following index (the ‘Affected Index‘):

Rationale for Methodology Change

Solactive has determined that an update to the Index Selection criteria for Band 2 is warranted in order to serve the objectives and scope of the Index, with respect to maintaining the investibility and appropriate diversification of the Index. Specifically, an adjustment to the minimum amount outstanding criteria will be made, whereby there will be for Band 2 a reduction from 500 million AUD to 250 million AUD.

Changes to the Index Guideline

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

From (old version):

“[…]
2.1. SELECTION OF THE INDEX COMPONENTS

The initial composition of each index, as well as any selection for a rebalance (as specified in Section 3) is determined using the following rules (the “Index Component Requirements“):

• AUD-denominated bonds only.
• Minimum amount outstanding of 500 million AUD is required.
• Remaining time to maturity from 7 to 12 years inclusive.
• Bonds should be issued under the Australian law.
• Inflation-linked Bonds, Zero Coupon Bonds, Floating Rate Notes are excluded.
• Eligible issuers for Band 1: Australian federal governments and Australian state governments.
• Eligible issuers for Band 2: supranational organizations; Australian and foreign government agencies and government-related development banks (issuers of Developed Countries only); non-Australian governments or non-Australian regional authorities (issuers of Developed Countries only).

[…].”

To (new version):

“[…]
2.1. SELECTION OF THE INDEX COMPONENTS

The initial composition of each index, as well as any selection for a rebalance (as specified in Section 3) is determined using the following rules (the “Index Component Requirements“):

• AUD-denominated bonds only.
• Minimum amount outstanding of 500 million AUD is required for Band 1.
• Minimum amount outstanding of 250 million AUD is required for Band 2.
• Remaining time to maturity from 7 to 12 years inclusive.
• Bonds should be issued under the Australian law.
• Inflation-linked Bonds, Zero Coupon Bonds, Floating Rate Notes are excluded.
• Eligible issuers for Band 1:
  • Australian federal governments and Australian state governments.
• Eligible issuers for Band 2:
  • Supranational organizations; Australian and foreign government agencies and government-related development banks (issuers of Developed Countries only); non-Australian governments or non-Australian regional authorities (issuers of Developed Countries only).

[…].”

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.