Overview
Announcements

Methodology Change | Solactive ISS ESG Screened DM Technology 5% Cap Index | Effective Date 15/02/2023

Today, on the 13/02/2023, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

NAME

RIC

ISIN

Solactive ISS ESG Screened DM Technology 5% Cap Index PR

.SESGTECP

DE000SL0GYA1

Solactive ISS ESG Screened DM Technology 5% Cap Index NTR

.SESGTECN

DE000SL0GYB9

Solactive ISS ESG Screened DM Technology 5% Cap Index TR

.SESGTECT

DE000SL0GYC7

 

Rationale for Methodology Change

The current weighting scheme of the Affected Indices caps the weights of individual securities at 5% according to Free Float Market Capitalization. To limit the concentration of weight around one company with multiple share classes, Solactive has determined to amend the weighting scheme of the Affected Indices to apply the capping not only to the individual securities (INDEX COMPONENT) but to the companies (cumulative weight of all share classes related to a company). Thus, the weight of all share classes linked to a company will be capped at the designated threshold (5%).

In order to implement the amended weighting scheme, an extraordinary reweighting will be implemented on the close of business of the 15th February 2023, open effective 16th February 2023. The index composition will not be altered.

Changes to the Index Guideline

The following Methodology change will be implemented in the following point of the Index Guideline:

Old version

Section 2.3

On each SELECTION DAY, each INDEX COMPONENT is assigned a weight according to FREE FLOAT MARKET CAPITALIZATION.

Individual INDEX COMPONENT weights of indices in the table below are capped at the thresholds described below on each SELECTION DAY. The excess weight is distributed pro rata across the whole index in an iterative manner.

Index                                                                                                                                                                                                                                                                                                                Weight Cap   

Solactive ISS ESG Screened DM Technology 5% Cap Index                                                                                                   5%

 

To

New version

Section 2.3

On each SELECTION DAY, each INDEX COMPONENT is assigned a weight according to FREE FLOAT MARKET CAPITALIZATION.

For indices in the table below, individual company weights are capped at the thresholds described below on each SELECTION DAY. The excess weight is distributed pro rata across the whole index in an iterative manner. For clarification: If multiple INDEX COMPONENTS relate to one company, the cumulative weight of all these INDEX COMPONENTS is capped at the threshold described below proportionate to the INDEX COMPONENTS’ original weights.

Index                                                                                                                                                                                                                                                                                                                Weight Cap

Solactive ISS ESG Screened DM Technology 5% Cap Index                                                                                                5%     

 

 

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.