Methodology change | Solactive Emerging Markets Local Currency Government Bond Select NTR Index | Effective date 22th July 2020
Today, on the 08th July 2020, Solactive announces the following changes to the methodology of the following Index (the ‘Affected Index’):
|
NAME |
RIC |
ISIN |
|
Solactive EM Local Currency Government Bond Select NTR Index |
.SOLEBLS |
DE000SLA8QH7 |
Rationale for methodology change
As a result of the improvement on the tradability and accessibility situation in the South Korean local currency market, Solactive considered a change in the selection criteria. This change aims to maintain the objective of the Affected Index which is the replication of the investible universe of emerging market bonds in local currency.
Changes to the Index Guideline
- The words “South Korea is excluded” will be deleted from the table in section 2.1 “Selection of the Index Components” of the guideline:
Old version:
2.1. SELECTION OF THE INDEX COMPONENTS
Local Currency Series
[…]
The Index Series is broken down into several sub-indices, which may have additional criteria listed below.
|
Name |
Currency Type |
Additional Requirements |
Capping |
|
Solactive USD EM Government & Govt Related TR Index |
Hard: USD |
N/A |
N/A |
|
Solactive EUR EM Government & Govt Related TR Index |
Hard: EUR |
N/A |
N/A |
|
Solactive LCY EM Government TR Index |
Local |
N/A |
N/A |
|
Solactive EM USD Govt & Govt Related Bond Select CAD NTR Index |
Hard: USD |
Russia and Ukraine non- sovereign issuers are excluded. Countries whose total weight is less than 0.3% of all eligible countries on each annual review in May will be excluded. |
Country Weight: Min: 1% Max:7,5% |
|
Solactive EM USD Govt & Govt Related Bond Select CAD Hedged NTR Index |
Hard: USD |
Russia and Ukraine non- sovereign issuers are excluded. Countries whose total weight is less than 0.3% of all eligible countries on each annual review in May will be excluded. |
Country Weight: Min: 1% Max:7,5% |
|
Solactive EM Local Currency Government Bond Select NTR Index |
Local |
South Korea is excluded. Countries whose total weight is less than 0.5% of all eligible countries on each annual review in May will be excluded. |
Country Weight: Min: 2% Max:10% |
New version:
2.1. SELECTION OF THE INDEX COMPONENTS
Local Currency Series
[…]
The Index Series is broken down into several sub-indices, which may have additional criteria listed below.
|
Name |
Currency Type |
Additional Requirements |
Capping |
|
Solactive USD EM Government & Govt Related TR Index |
Hard: USD |
N/A |
N/A |
|
Solactive EUR EM Government & Govt Related TR Index |
Hard: EUR |
N/A |
N/A |
|
Solactive LCY EM Government TR Index |
Local |
N/A |
N/A |
|
Solactive EM USD Govt & Govt Related Bond Select CAD NTR Index |
Hard: USD |
Russia and Ukraine non- sovereign issuers are excluded. Countries whose total weight is less than 0.3% of all eligible countries on each annual review in May will be excluded. |
Country Weight: Min: 1% Max:7,5% |
|
Solactive EM USD Govt & Govt Related Bond Select CAD Hedged NTR Index |
Hard: USD |
Russia and Ukraine non- sovereign issuers are excluded. Countries whose total weight is less than 0.3% of all eligible countries on each annual review in May will be excluded. |
Country Weight: Min: 1% Max:7,5% |
|
Solactive EM Local Currency Government Bond Select NTR Index |
Local |
Countries whose total weight is less than 0.5% of all eligible countries on each annual review in May will be excluded. |
Country Weight: Min: 2% Max:10% |