Methodology Change | Solactive Global Uranium & Nuclear Components Total Return Index | Effective Date 05/01/2023

Today, on the 22/12/2022, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):

Rationale for Methodology Change

To enhance the Definition of Pure Play Companies within the Index Universe, Solactive decided to expand the Definition of Pure Play Companies to include companies which primary business is the production/development of nuclear reactors/nuclear reactors technology, especially in the background of the technological progress within the nuclear reactor industry (e.g. small nuclear reactors, fast breeder) and relevance for future energy supply.  

Additionally, companies where information on business exposure cannot be verified by publicly disclosed  information (like company filings/presentations, company website, data provider), shall be excluded from the index universe to add further transparency on the selection procedure. 

Lastly, changing the naming of Section 2.4 from “Continuous Listings Standards Review” to “Quarterly Diversification Review”.

Changes to the Index Guideline

Section 2.1 Index Universe Requirements

From:

[…]

2) The INDEX UNIVERSE will be constructed and defined by Solactive and supported with the “Uranium Suppliers Annual” as provided on a yearly basis by the Ux Consulting Company (UxC). The report will also be considered to classify companies as PURE PLAY COMPANIES or NON-PURE PLAY COMPANIES. PURE PLAY COMPANIES in the “Uranium Suppliers Annual” are generally those with significant business operations in the uranium industry (particularly in uranium mining and exploration for uranium). NON-PURE PLAY COMPANIES are generally those that conduct business operations that are related to the uranium industry (in particular uranium mining, exploration for uranium, physical uranium investments and technologies related to the uranium industry), and in which they generate large absolute revenues. Additionally, a list of “Nuclear Component Producers” will be added to the INDEX UNIVERSE.

[…]

To:

[…]

2) The INDEX UNIVERSE will be constructed and defined by Solactive and supported with the “Uranium Suppliers Annual” as provided on a yearly basis by the Ux Consulting Company (UxC). The report will also be considered to classify companies as PURE PLAY COMPANIES or NON-PURE PLAY COMPANIES. PURE PLAY COMPANIES in the “Uranium Suppliers Annual” are generally those with significant business operations in the uranium industry (particularly in uranium mining and exploration for uranium) as reflected by publicly disclosed information. NON-PURE PLAY COMPANIES are generally those that conduct business operations that are related to the uranium industry (in particular uranium mining, exploration for uranium, physical uranium investments and technologies related to the uranium industry), and in which they generate large absolute revenues as reflected by publicly disclosed information. Additionally, a list of “Nuclear Component Producers” will be added to the INDEX UNIVERSE.

[…]

Section 2.4. Continuous Listing Standard Review

From:

2.4. CONTINUOUS LISTING STANDARD REVIEW

To:

2.4. QUARTERLY DIVERSIFICATION REVIEW

Section 6 Definitions

From

[…]

“PURE PLAY COMPANY” refers to (1) a company for which a significant part of the business operations is or is expected to be related to the uranium industry (in particular uranium mining, exploration for uranium, and technologies related to the uranium industry) or (2) an investment trust whose primary purpose is to provide exposure to physical uranium. For companies that are defined as PRIMARY PRODUCERS, they must additionally earn more than 50% of the previous year’s revenue with the sale of uranium.

[…]

To:

[…]

“PURE PLAY COMPANY” refers to (1) a company for which a significant part of the business operations is or is expected to be related to the uranium industry (in particular uranium mining, exploration for uranium, and technologies related to the uranium industry) or (2) an investment trust whose primary purpose is to provide exposure to physical uranium or (3) companies which primary business is the production/development of nuclear reactors/ nuclear reactor technology. For companies that are defined as PRIMARY PRODUCERS, they must additionally earn more than 50% of the previous year’s revenue with the sale of uranium.

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