Core Products and Services

Solactive?s business model is centered on the development and administration of financial indices across various asset classes, including Equity, Fixed Income, and Multi-Asset strategies.

1. Index Development and Administration

The company?s flagship service is the end-to-end creation of indices. This involves: * Custom Indexing: Solactive works directly with clients to design indices based on specific investment strategies or proprietary quantitative models. This "White Label" service allows asset managers to launch unique products without building their own indexing infrastructure. * Benchmark Administration: As a registered Benchmark Administrator under the European Benchmarks Regulation (BMR), Solactive ensures that its indices adhere to strict regulatory standards regarding data integrity and governance. * Global Benchmark Series (GBS): A comprehensive family of indices covering thousands of stocks across developed and emerging markets, designed to serve as a cost-effective alternative to standard market cap-weighted benchmarks provided by larger competitors.

2. Thematic Indexing and ARTIS Technology

Solactive is a market leader in "Thematic Investing," which involves creating indices that track long-term structural trends rather than simple geographic or sector lines. To achieve this, the company utilizes its proprietary ARTIS? (Algorithmic Theme Identification System).

• How ARTIS? Works: This software engine uses Natural Language Processing (NLP) to parse vast amounts of unstructured data?such as company annual reports, financial news, and regulatory filings. It identifies companies that have significant exposure to a specific theme (e.g., "Humanoid Robotics" or "Remote Work") based on the frequency and context of relevant keywords, rather than relying solely on traditional revenue sector classifications.

3. ETF Services and Calculation

Beyond index creation, Solactive provides critical operational services for the ETF ecosystem: * iNAV and IOPV Calculation: The company calculates the Indicative Net Asset Value (iNAV) and Indicative Optimized Portfolio Value (IOPV) in real-time. This data is essential for market makers and exchanges to price ETFs accurately throughout the trading day. * Portfolio Composition Files (PCF): Solactive generates and distributes daily files that detail the exact holdings of an ETF, facilitating the creation and redemption process for authorized participants.

4. ESG and Climate Solutions

Recognizing the shift toward sustainable investing, Solactive offers a suite of ESG (Environmental, Social, and Governance) indices. These include: * Paris-Aligned Benchmarks (PAB): Indices designed to align with the 1.5?C global warming target. * ESG Screened Indices: Benchmarks that exclude companies involved in controversial weapons, tobacco, or thermal coal.

Focus: Solactive China Humanoid Robotics Index

Index ISIN: DE000SL0PWT6
Index Ticker: SOLCHRBT (depending on version)

One of the entity's specialized thematic products is the Solactive China Humanoid Robotics Index. This index is designed to track the performance of Chinese companies that are at the forefront of the humanoid robotics revolution.

Index Objective and Methodology

The index serves as a representation of securities for companies engaged in the development, manufacturing, and supply of technologies essential for humanoid robotics. The selection universe typically focuses on the Chinese market, identifying firms involved in: * AI-Driven Robotics: Companies developing the "brains" and artificial intelligence algorithms that allow robots to perceive and navigate their environment. * Motion Control Systems: Manufacturers of the complex control units that manage robotic movement and balance. * Precision Actuators: Suppliers of the joints and motors (servos, harmonic drives) that enable fluid, human-like motion. * Sensing and Perception: Companies producing vision sensors, LiDAR, and tactile sensors required for robotic interaction.

Calculation and Rebalancing

• Total Return: The index is often calculated as a Total Return (TR) or Net Total Return (NTR) index, meaning that dividends paid by the constituent companies are reinvested into the index performance.
• Currency: The index is calculated in Offshore Renminbi (CNH) or Onshore Renminbi (CNY), reflecting the domicile of the underlying assets.
• Rebalancing: Like most Solactive thematic indices, it undergoes regular rebalancing (e.g., semi-annually or quarterly) to ensure that the basket of stocks remains representative of the fast-evolving robotics sector and that no single stock dominates the weighting.

Technological Infrastructure

Solactive distinguishes itself through its IT infrastructure, which is built on modern cloud-based technologies rather than the mainframe legacy systems used by older index providers. This infrastructure allows for: * Speed to Market: Solactive can often bring a new index concept to launch in a matter of weeks. * Automated Corporate Actions: The company uses automated systems to handle stock splits, mergers, and spin-offs, ensuring the indices remain accurate without manual intervention.