INDEX RULES ECPI GLOBAL RENEWABLE ENERGY EQUITY INDEX

Transcription

1 INDEX RULES ECPI GLOBAL RENEWABLE ENERGY EQUITY INDEX OCTOBER 2014

2 2 TABLE OF CONTENT INTRODUCTION GUIDING PRINCIPLES ELIGIBILITY CRITERIA REVIEW CALCULATION METHOD ADJUSTMENTS FOR CORPORATE ACTIONS APPENDIX A: GLOBAL DEVELOPED MARKETS APPENDIX B: DIVIDEND WITHHOLDING TAXES APPENDIX C: DEFINITIONS CONTACTS

3 3 INTRODUCTION The presen documen defines he rules for he calculaion and managemen of he ECPI Global Renewable Energy Equiy Index. The Index Rules are available on ECPI websie, and on ECPI Bloomberg page, ECPS <GO>. The ECPI Global Renewable Energy Equiy Index includes a se of 20 global companies ha aim a providing nearerm soluions o global warming while offseing he longer-erm impacs of climae change hrough renewable energy, alernaive fuels, clean echnology and efficiency. SECTOR VALIDATION Consiuen selecion is based on ECPI ESG Screening mehodology. Nuclear energy and oil companies are no aken ino consideraion, excep for he specific discreionary cases when a company can subsanially conribue o he susainable developmen and use of renewable energies. Inclusion of such companies will be explicily communicaed. SUSTAINABILITY ECPI evaluaes each company based on is specific environmenally susainable effors, environmenal managemen and capabiliy o offse negaive climae impacs. RENEWABLE ENERGY: THE BACKGROUND The ime of oil and gas shorages is near o come and, as a resul, obaining elecriciy from alernaive sources has become increasingly imporan. The global boom in renewable energy is underway and i is se o coninue. Overall, srong growh raes are forecased for clean energy sources. Markes are expeced o grow from USD 16 Bio in global revenues in 2004 o more han USD 100 Bio by 2014 according o a repor released by Clean Edge, an energy research and publishing firm. The share of renewable energy in oal worldwide elecriciy producion is 17.9%. Roughly 90% of ha share is waer power (16.2% of oal elecriciy producion), biomass 6% and he remaining renewable energy processes almos 4% 1 ]. TYPES OF REBEWABLE ENERGY Renewable energy is generally classified as commercial energy producion or energy sources which are inexhausible. Bioenergy: a low cos energy source ha can be obained from biomass, in paricular wood sraw maize, sugar bee, oil-seed rape, biogas and plan oils. Is main advanage is he reducion of carbon dioxide emission ino he amosphere. Solar Power: energy of he sun (nuclear fusion), which akes he form of elecromagneic radiaion. Waerpower: energy of waer currens which can be convered ino mechanical energy. Wind power: he kineic energy produced by masses of air moving in he amosphere. Geohermal: he hea sored in he upper layer of he earh s crus. I describes boh he energy produced by or sored in he earh. Fuel cells: a fuel cell is a volaic cell ha convers a coninuous supply of fuel and an oxidizing agen ino usable elecrical energy. 1 Federal Minisry for he Environmen, Naure Conservaion and Nuclear Safey, June 2005, Germany.

4 Alernaive Soluions: ECPI selecs global players acive in implemening innovaive soluions ha allow a more efficien and environmenal friendly use of power resources. 4

5 5 GUIDING PRINCIPLES ECPI Alpha Indices are consruced and mainained according o he following principles: ESG Raed Companies The index is represenaive of he posiively/highes ESG-raed companies according o he proprieary ECPI ESG Raing Mehodology. Invesible and Replicable The index should be capable of being replicaed by reference o securiies of reasonable size and liquidiy. Disciplined Approach The index is consruced and managed using a se of principles, rules and guidelines. This approach is followed o mainain he aribues of sabiliy, diversificaion across indusries and securiies accurae wih respec o he ESG Raing Mehodology. Transparency The index is buil and mainained using clear and pre-defined rules in he public domain. The index is published on a daily basis hrough a variey of well known financial services providers. Independence and Objeciviy The index is based on independen and objecive conen decisions. ECPI believes in an open dialogue wih is cliens, considering wih objeciviy heir suggesions o enhance he index provision. By analyzing all he feedback received from is cliens, ECPI akes he final decision independenly in order o preserve he qualiy of he index.

6 6 ELIGIBILITY CRITERIA The ECPI Global Renewable Energy Equiy Index is designed o provide exposure o a baske of he highes ESG raed, mos capialized and mos liquid companies acive in he renewable energy, alernaive fuels, clean echnology and efficiency markes. The index is equally weighed and rebalanced annually on he hird Friday of Ocober. To be eligible for inclusion in he ECPI Global Renewable Energy Equiy Index, a sock mus saisfy he following crieria (in which case, i will be an eligible sock ): 1. i is acive in he renewable energy, alernaive fuels, clean echnology and efficiency markes 2. i belongs o he Global Developed Markes as defined in Appendix A. If a company is based in he Emerging Markes, only ADR o GDR of his company, ha is lised in a Global Developed Marke, will be considered for inclusion 3. i has a posiive ECPI ESG Raing (from EEE o E-) 4. he issuer of he sock mus have a minimum marke capializaion of 1 billion 5. he average daily raded value of he sock over he las 6 monhs shall be equivalen o a minimum of 10 million Addiionally, he ECPI Global Renewable Energy Equiy Index has o mee he following crieria (selecion order): 6. Sock Diversificaion Crieria he ECPI Global Renewable Energy Equiy Index will be composed of 20 socks seleced in descending order of marke capializaion 7. Secor Diversificaion Crieria consiuens shall be classified by secor in accordance wih he Bloomberg Indusry Classificaion Sysem (BICS). Maximum secor concenraion is 30%.

7 7 REVIEW Semi-annually, on he Reference Dae 2 immediaely preceding he relevan Rebalance Dae 3, socks will be seleced in accordance wih he crieria described above (paragraph 3) as new consiuens of he index. As a consequence, if a consiuen company is downgraded beween wo consecuive review daes so ha i doesn saisfy he eligibiliy crieria any more, i will be replaced on he immediaely following rebalance dae. BUFFER RULE All curren consiuens ranked 30 or above in he selecion order will remain in he index. For all curren consiuens, a olerance of 20% is applied o he marke capializaion and 6-monhs daily average value raded limis. Therefore, a consiuen will be allowed o remain in he index if i has a minimum marke cap of 800 million and a minimum liquidiy of 8 million. STOCK REPLACEMENT If index consiuens are displaced, replacemen socks are seleced saring from he highes ranked nonconsiuen in he reference universe according o crieria defined in paragraph 3. 2 Reference Dae means he firs Wednesday of March and Sepember. 3 Rebalance Dae means he firs Thursday of April and Ocober provided ha if such day is no a Scheduled Trading Day he Rebalance Dae shall be he nex Scheduled Trading Day. In he even ha he scheduled Rebalance Dae is a Disruped Day, he Rebalance Dae for such rebalancing will be he nex Scheduled Trading Day which is no a Disruped Day.

8 8 CALCULATION METHOD On he Reference Dae, he number of shares of each sock will be deermined so ha every sock is equally weighed. This number of shares will be effecive from he immediaely following Rebalance Dae. From ha momen ill he following Rebalance Dae, he number of shares will be fixed and consiuen weighs will vary according o price changes (see Paragraph 6, Adjusmens for Corporae Acions, for deails on possible share changes). CALCULATION FREQUENCY The Index is calculaed and published daily, on a nex day basis. Calendar for he Index calculaion is he TARGET calendar. PRICES The Index end-of-day calculaions use official closing prices from he relevan exchanges of he consiuen socks. Such prices shall be convered ino euro using he relevan GMT WM Reuers Currency cross raes. INDEX CALCULATION ALGORITHM The closing price of securiies is convered ino Euro and he index is hen calculaed using he algorihm described below. The price index is calculaed as follows: I ( P ) I ( P ) Where I(P) = price index on day P = official closing price in Euro for sock i on day N = number of shares for sock i on day n = number of index consiuens The ne oal reurn index is calculaed as follows: * 1 n 1 n 1 P P N 1, N I( TR) I( TR) 1 * i 1 P n N 1 P 1 n 1 D * N N Where I(TR) = oal reurn index on day P = official closing price in Euro for sock i on day D i, = gross (ne) dividend in Euro for sock i on he ex-dividend dae N = number of shares for sock i on day n = number of index consiuens Noe: The Official Closing Price shall be inended as he official closing price for he sock on he relevan Exchange. The price shall be in Euro or convered ino Euro using he foreign exchange spo rae, as defined above.in case, he price of a sock is no available due o exchange holiday, previous day s price is used for index calculaions. See Appendix B for Dividend Wihholding Tax Raes used for he calculaion of Ne Dividends.

9 9 ADJUSTMENTS FOR CORPORATE ACTIONS CORPORATE ACTION ADJUSTMENT MADE TO INDEX DIVISOR ADJUSTMENT DIVIDENDS Dividends are reinvesed in he Index Unchanged SPECIAL DIVIDENDS / RETURN OF CAPITAL Price of he sock making he special dividend paymen is reduced by he per share special dividend amoun afer he close of rading on he day before he dividend ex-dae. Cash from he special dividend is reinvesed in he index Yes STOCK DIVIDENDS / BONUS ISSUES No weigh change. This even is characerized by a free disribuion of new shares o exising shareholders on a pro raa basis. Marke Prices and number of shares of securiies are adjused accordingly. Unchanged SHARE ISSUANCE OR REPURCHASE None Unchanged SPIN-OFF The price is adjused o Price of he paren company minus price of he spun-off company/share exchange raio. Index shares change so ha he company s weigh remains he same. Unchanged STOCK SPLIT / REVERSE SPLIT / CONSOLIDATIONS RIGHTS OFFERING Company shares are muliplied by and he price is divided by he spli facor. Price is adjused o he price of paren company minus price of he righs offering/righs raio. Index shares change so ha he company s weigh remains he same. Unchanged Unchanged DELISTING, ACQUISITION OR ANY CORPORATE ACTION RESULTING IN THE DISPLACEMENT OF A STOCK When a consiuen company is acquired or merged or displaced for any oher reason, is shares are removed from he index. The company will be replaced a he nex rebalancing. Yes

10 10 APPENDIX A: GLOBAL DEVELOPED MARKETS GLOBAL DEVELOPED MARKETS Ausralia Ausria Belgium Canada Denmark Finland France Germany Greece Hong Kong Ireland Israel Ialy Japan Neherlands New Zealand Norway Porugal Singapore Spain Sweden Swizerland Unied Kingdom USA

11 11 APPENDIX B: DIVIDEND WITHHOLDING TAXES COUNTRY NAME COUNTRY ISO TAXATION Ausria AT 0,25 Ausralia AU 0,3 Belgium BE 0,25 Bermuda BM 0 Brazil BR 0 Canada CA 0,25 Swizerland CH 0,35 Chile CL 0,35 China CN 0,1 Czech CZ 0,35 Germany DE 0,26375 Denmark DK 0,27 Spain ES 0,21 Finland FI 0,3 France FR 0,3 Grea Briain GB 0 Greece GR 0,1 Hong Kong HK 0 Hungary HU 0 Indonesia ID 0,2 Ireland IE 0,2 India IN 0 Iceland IS 0,15 Ialy IT 0,2 Japan JP 0,15315 Souh Korea KR 0,22 Luxembourg LU 0,15 Mexico MX 0,1 Neherlands NL 0,15 Norway NO 0,25 New Zealand NZ 0,15 Philippines PH 0,3 Poland PL 0,19 Porugal PT 0,25 Russia RU 0,15 Sweden SE 0,3 Singapore SG 0 Thailand TH 0,1 Taiwan TW 0,2 Usa US 0,3 Souh Africa ZA 0,15

12 12 APPENDIX C: DEFINITIONS Index Consiuen or Consiuen Any securiy comprised in he index, provided ha on any Reference Dae and in he relevan Rebalance Period, Consiuen shall include any sock which will be included in he index as of he nex Rebalance Dae a he end of such Rebalance Period. Rebalance Period I is he imeframe beween Reference Dae and Rebalance Dae. Exchange and Relaed Exchange Each exchange on which any Index Consiuen is, in he deerminaion of ECPI, principally raded. Scheduled Trading Day Any day on which each Exchange and each Relaed Exchange are scheduled o be open for rading for heir respecive regular rading session. Disruped Day Any Scheduled Trading Day on which: (i) a relevan Exchange or any Relaed Exchange fails o open for rading during is regular rading session; or (ii) a Marke Disrupion Even has occurred. Marke Disrupion Even The occurrence, in respec of he Index Consiuen of: a Trading Disrupion an Exchange Disrupion an Early Closure where he aggregae of all Index Consiuens in respec of which a Trading Disrupion, an Exchange Disrupion or an Early Closure occurs, comprises 20 per cen or more of he aggregae number of all Index Consiuens for which he Exchange and Relaed Exchange were scheduled o be open for rading for is regular rading session on such day. Trading Disrupion Any suspension of or limiaion imposed on rading by he Relevan Exchange or Relaed Exchange or oherwise and wheher by reason of movemens in price exceeding limis permied by he Relevan Exchange and Relaed Exchange or oherwise. Exchange Disrupion Any even ha disrups or impairs (as deermined by he ECPI) he abiliy of marke paricipans in general (i) o effec ransacion in, or obain marke values for he Index Consiuens. Early Closure The closure on any Exchange Business Day of he Relevan Exchange or any Relaed Exchange prior o is Scheduled Closing Time.

13 13 CONTACTS Index Dep. T [email protected] Filippo Bucci T [email protected] Bloomberg: ECPS Reuers: ECAPITAL Disclaimer This documen has been prepared by ECP Inernaional S.A., Luxembourgish PSF (Financial Services Provider / Professionnel du Seceur Financier ) regulaed by he CSSF (Luxembourg financial regulaory auhoriies) holding an invesmen advisory license, and/or ECPI S.r.l., and/or any of heir subsidiaries and affiliaes, being noed ha ECP Inernaional S.A., ECPI S.r.l., are enirely owned by ECPI Group S.r.l., a company organized and exising under he laws of Ialy, wih regisered office a Via G. Carducc Milan, Ialy (he ECPI Group Companies ) as par of heir inernal research aciviy. The informaion provided herein and, in paricular, he daa conained in his documen are aken from informaion available o he public. All informaion conained herein is obained from sources believed by i o be accurae and reliable. While he opinions and informaion conained in his documen are based on public sources believed o be reliable and in good faih, ECPI Group Companies have no independenly verified he accuracy of such public sources. Because of he possibiliy of human, echnical or whasoever kind of similar error, however, such informaion is provided as is wihou warrany of any kind and ECPI Group Companies, in paricular, make no represenaion or warrany, wheher express or implici, as o he fairness, accuracy, imeliness, compleeness, merchanabiliy and/or finess of any such informaion and opinions conained in his documen. Accordingly, neiher ECPI Group Companies nor any of heir respecive direcors, managers, officers or employees shall be held liable for whaever reason (including, wihou limiaion, liabiliy in negligence) for any loss (including consequenial loss), expense, consequenial, special, incidenal, direc or indirec or similar damage, wheher or no advised of he possibiliy of such damage, in connecion wih he fairness, accuracy, imeliness, compleeness, merchanabiliy and/or finess of he informaion and opinions conained in his documen and/or arising from any use or performance of his documen or is conens or oherwise arising in connecion wih his documen. Any opinions, forecass or esimaes conained herein consiue a high-level informaion saemen only valid as a he dae of is release. There can be no assurance ha he evoluion of he informaion conained herein and/or any fuure evens will be consisen wih such opinions, forecass or esimaes. Any informaion herein is a any ime subjec o change, updae or amendmen subsequenly o he dae of his documen, wih no underaking by ECPI Group Companies o noify such change, updae or amendmen. This documen is no, nor may i be consrued as o consiue a recommendaion o make any kind of invesmen decision or an offer for sale or subscripion of or a soliciaion of any offer o buy or subscribe for any financial insrumen. Accordingly, his documen may no be used as a soliciaion or an offer for sale or subscripion, and any soliciaion or offer shall be made only in accordance wih all applicable laws and regulaion, including, whenever applicable, he filing of a prospecus wih he relevan auhoriies. ECPI Group Companies recommend o poenial invesors wishing o be provided wih formal financial advice in he area of invesmen o conac a financial advisor duly auhorized by he compeen regulaory auhoriy of is counry. ECPI Group Companies publish researches on a regular basis. This publicaion has been prepared on behalf of ECPI Group Companies solely for informaion purposes. All he informaion conained herein is copyrighed in he name of ECPI Group Companies, and none of such informaion may be copied or oherwise reproduced, excep for personal use only, furher ransmied, ransferred, published, disseminaed, redisribued or resold, in whole or in par, in any form or manner or by any means whasoever, by any person wihou ECPI Group Companies prior wrien consen.