Methodology Change | Solactive Global Copper Miners Total Return v2 Index | Effective Date 1 April 2022

Today, on the 17th of March 2022, Solactive announces the following changes to the methodology of the following index (the ‘Affected Index’):

Rationale for Methodology Change

To reflect more compliance with European regulation in terms of the methodology Solactive AG determined to change the current Continuous Listings Standards Review to a Quarterly Diversification Review. Furthermore the weight thresholds from the current Continuous Listings Standards Review will be adjusted to ensure ongoing compliance with UCITS regulation. 

Changes to the Index Guideline

The following Methodology changes will be implemented in the following points of the Index Guideline (ordered in accordance with the numbering of the affected sections):

From (Old Wording):

2.3.       Weighting of the Index Components

[…]

On each Monitoring Selection Day the Index Components will be checked for a breach of the following criteria (the “Continuous Listing Standards”):

• The maximum weight of the top Index Component must not be larger than 25%. If this criterion is breached, the Index Component is capped at 22%.
• The maximum aggregate weight of top 5 Index Components must not exceed 60%. If this criterion is breached, the Index Components will be proportionally capped at 55%.
• The maximum weight of Index Components with an Average Monthly Trading Volume below 250,000 shares traded over 6 months prior to and including the Monitoring Selection Day and an Average Monthly Value Traded below USD 25 million over 6 months prior to and including the Monitoring Selection Day must not exceed 30%. If this criterion is breached, the Index Components with an Average Monthly Trading Volume below 250,000 shares traded over 6 months prior to and including the Monitoring Selection Day  and an Average Monthly Value Traded below USD 25 million over 6 months prior to and including the Monitoring Selection Day will be proportionally capped at 25%.
• The maximum weight of Index Components with a Share Class Market Capitalization below USD 100 million must not account for more than 10%. If this criterion is breached, Index Components with Share Class Market Capitalization below USD 100 million will be proportionally capped at 9%.

The excess weight that results from implementing these constraints is redistributed proportionally in an iterative manner, such that none of the above constraints are breached.

In the event that the Continuous Listing Standards criteria cannot be satisfied using the buffers described above, the weighting will be reviewed by the Oversight Committee. After the review a decision will be announced publicly.

To (New Wording):

2.4.       Quarterly Diversification Review

On each Monitoring Selection Day the Index Components will be checked for a breach of the following criteria:

• The maximum weight of the top Index Component must not be larger than 17.5%. If this criterion is breached, the Index Component is capped at 15%.
• The maximum aggregate weight of top 5 Index Components must not exceed 60%. If this criterion is breached, the Index Components will be proportionally capped at 55%.
• The maximum weight of Index Components with an Average Monthly Trading Volume below 250,000 shares traded over 6 months prior to and including the Monitoring Selection Day and an Average Monthly Value Traded below USD 25 million over 6 months prior to and including the Monitoring Selection Day must not exceed 30%. If this criterion is breached, the Index Components with an Average Monthly Trading Volume below 250,000 shares traded over 6 months prior to and including the Monitoring Selection Day  and an Average Monthly Value Traded below USD 25 million over 6 months prior to and including the Monitoring Selection Day will be proportionally capped at 25%.
• The maximum weight of Index Components with a Share Class Market Capitalization below USD 100 million must not account for more than 10%. If this criterion is breached, Index Components with Share Class Market Capitalization below USD 100 million will be proportionally capped at 9%.

The excess weight that results from implementing these constraints is redistributed proportionally in an iterative manner, such that none of the above constraints are breached.

This reweighting process will be repeated until none of the constraints are breached. In the event that the above criteria cannot be satisfied using the buffers described above, the weighting will be reviewed by the Oversight Committee. After the review a decision will be announced publicly.

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.