Alongside Structured Solutions AG, Commodity Capital AG manages the Solactive Lithium Performance Index. The index concept is described below.
The Solactive Lithium Performance Index is based on the performance of listed companies focused on the Exploration, Extraction or Investment in the base metal Lithium. It is an indicator for this market. The index is based at 100 points at the close of trading on 30.09.2009, which is the start date. Calculation and allocation of Solactive Lithium is calculated every day on which the Stuttgart stock exchange trading is open between 09: 00 and 22: 00 CET, and published every 60 seconds. The latest traded value of all constituent companies of the index is used for the calculation. The value of constituent companies which are not traded in the index currency, Euros, are converted at real-time rates. If no current price for a constituent company is available, calculations are made with the last available price or the closing price of the last trading day. The price of the index is published through the Stuttgart Stock Exchange (Boerse Stuttgart AG). The Solcative Lithium index is calculated as a performance index, i.e. including all dividend payments of constituent companies, minus relevant taxes and fees. Dividends received are reinvested into the issuing company.
Solactive Lithium consists of a maximum of 25 index members; Commodity Capital AG as the index Advisor is responsible for the creation of the selection pool of eligible companies. Companies are included in the selection pool if they meet all the following criteria:
(a) Headquartered in one of the following countries: Australia, Austria, Belgium, Canada, China, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Indonesia, Italy, Japan, South Korea, Malaysia, Netherlands, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, Taiwan, Czech Republic, United Kingdom, United States of America
(b) Listed on a recognised and regulated exchange in one of the countries referred to in (a)
(c) Market capitalisation of at least 2.5 million USD
(d) Sufficient tradability for foreign investors
(e) Commercial activity in the exploration, refinement and/or investment in the base metal Lithium
In addition, a maximum of one company can be added to the selection pool which does not satisfy condition (b) above, yet still fulfils all other criteria. The index is then assembled by taking the 25 companies with the largest market capitalisation from the selection pool. This process is done at the start of the index, and during all selection dates. If the selection pool contains less than 25 companies, the index consists of correspondingly fewer companies. Selection days are on the second Friday of the months of June and December, or if this is not a trading day on the trading day immediately preceding the second Friday of the months of June and December. The adjustment day follows five trading days after each selection day. After the close of trading on the adjustment day, the selection for the index on the last selection day is implemented, and is valid as of the next trading day.
The weight of the companies in Solactive Lithium is proportional to their market capitalisation, with the percentage weight of the four largest companies by market capitalization limited to nine percent, and the percentage weight of all other constituents limited to a maximum of four percent. The weighting percentages of are readjusted at every adjustment day. No adjustments are made to the weightings between adjustment days.
Decisions on the composition of Solactive Lithium as well as possible adjustments to the framework of Solactive Lithium are made by a committee, consisting of Structured Solutions AG and Commodity Capital AG. This committee decides on the selection day the components of Solactive Lithium. The committee is also responsible for decisions during extraordinary periods (mergers, take-overs, insolvencies, etc.) for the composition of Solactive Lithium and the implementation of necessary adjustments.
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