Methodology Change | Solactive Global SuperDividend REIT Index | Effective Date 22/07/2024

Today, on the 08/07/2024, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices):

Rationale for Methodology Change

The Indices are currently rebalanced over a five-day rebalance period using Target Weights and the final Number of Total Shares after the last day of the rebalance period is achieved by implementing the Target Weights of each constituent successively in the same portion per day.

To improve replicability of the index during the rebalance period, Solactive has decided to implement Target Number of Total Shares of each constituent successively in the same portion per day instead of Target Weights. Weights which are defined on the Selection Day and Dividend Cut Review Day will be used to determine the Number of Total Shares of each Index Component as of Selection Day and Dividend Cut Review Day.

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):

Section 2.4. Weighting of the Index Components

From:

On each Adjustment Day each Index Component of the Solactive Global SuperDividend™ REIT Index is weighted equally after a five-day Rebalance Period as described in section 3.1.

On each Dividend Cut Adjustment Day, the company that is added to the Index at the quarterly reviews will be given the same target weight as the member that will be deleted, calculated based on the Dividend Cut Review Day. In case more than one company is deleted, the cumulative weight of these companies is calculated and equally distributed among the replacements. Companies that remain in the Index will receive a target weight based on the weight as of the Dividend Cut Review Day.

In addition, on each DIVIDEND CUT ADJUSTMENT DAY, the maximum aggregate weight of constituents with individual weight equal or greater than 4.8% must not exceed 20%. If this criterion is breached, all constituents with weights above 4.5% will be capped at 4.5% and the excess weight is redistributed equally to other non-capped stocks. The excess weight will not be redistributed to member which will be deleted on the quarterly review.”

The target weights will be implemented after a five-day Rebalance Period as described in section 3.1.

To:

On each SELECTION DAY  each INDEX COMPONENT of the Solactive Global SuperDividend™ REIT Index is weighted equally. The target Number of Total Shares will be implemented after a five-day REBALANCE PERIOD as described in section 3.1.

On each DIVIDEND CUT REVIEW DAY, the company that is added to the INDEX at the quarterly reviews will be given the same weight as the member that will be deleted, calculated based on the DIVIDEND CUT REVIEW DAY. In case more than one company is deleted, the cumulative weight of these companies is calculated and equally distributed among the replacements. Companies that remain in the INDEX will receive a weight based on the weight as of the DIVIDEND CUT REVIEW DAY.

In addition, on each DIVIDEND CUT REVIEW DAY, the maximum aggregate weight of constituents with individual weight equal or greater than 4.8% must not exceed 20%. If this criterion is breached, all constituents with weights above 4.5% will be capped at 4.5% and the excess weight is redistributed equally to other non-capped stocks. The excess weight will not be redistributed to member which will be deleted on the quarterly review.”

The target Number of Total Shares will be implemented after a five-day REBALANCE PERIOD as described in section 3.1.

Section 3.1. Ordinary Rebalance

From:

In order to reflect the new selection of the Index Components determined on the Selection Day and Dividend Cut Review Day (in accordance with Section 2) the Index is adjusted during the Rebalance Period.

The Target Weights which are defined on the Selection Day and Dividend Cut Review Day are used to determine the Number of Total Shares of each Index Component. The final Number of Total Shares after the last day of the Rebalance Period is achieved by implementing the Target Weights of each constituent successively in the same portion per day. […]

To:

In order to reflect the new selection of the INDEX COMPONENTS determined on the SELECTION DAY and DIVIDEND CUT REVIEW DAY (in accordance with Section 2) the INDEX is adjusted during the REBALANCE PERIOD.

The Weights which are defined on the SELECTION DAY and DIVIDEND CUT REVIEW DAY are used to determine the Number of Total Shares of each INDEX Component as of SELECTION DAY/DIVIDEND CUT REVIEW DAY. The final Number of Total Shares after the last day of the REBALANCE PERIOD is achieved by implementing the Target Number of Total Shares of each constituent successively in the same portion per day.

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.