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A Authorised Participants An Authorised Participant is usually an institutional investor, specialist or market maker who has signed a participant agreement with a particular ETF sponsor or distributor. Becoming an Authorized Participant allows an investor to transact directly with the fund or trust on an "in kind" basis in a process known as Creations/Redemptions. Average Daily Traded Value Average daily value of shares traded over a specified period of time.
B Base Date 30 September 2003
C Capital Adjustment Adjustment to an Index Constituent’s share capital resulting from bonus issues, rights issues, subdivisions, consolidations, capital repayments, mergers, demergers, stock additions, stock deletions and other events of a related nature. Climate Change Activities The provision of technology, products or services focused on the preservation of natural resources and the mitigation of climate change through reducing or eliminating the production of greenhouse gases and pollutants. Creations/Redemptions The process by which Authorized Participants transact directly with the fund on an “in kind” basis. Creations/Redemptions occur in Creation Unit aggregations or multiples thereof and involve delivering a specified basket of securities to the fund in exchange for ETF shares and vice versa. Creations/Redemptions occur at the end-of-day Net Asset Value (NAV) of the fund to avoid dilution of existing fund shares. Creations/Redemptions involve an “in kind” transfer of securities, a transaction that is not a taxable event for the fund. This allows imbalances between supply and demand for ETF shares to be satisfied without having an adverse taxable effect upon existing ETF shareholders. Creation Date 30 November 2009 Creation Unit The unit size aggregation in which an Authorized Participant can create or redeem ETF shares with the fund or trust. The creation unit size can vary by fund and ranges from 25,000 to 600,000 shares. ETFs typically issue shares in creation unit size in exchange for a predefined basket of the underlying index securities. Authorized Participants engaging in the creation and redemption process will typically be charged a creation or redemption fee that varies from fund to fund. The fees for creations and redemptions can be found in the prospectus of each ETF. Currency Adjusted Market Capitalisation Market Capitalisation translated into USD
D Data Disruption Event involving unavailability of data.
E Equal Dollar Weighted Index In an equal dollar weighted index, share quantities for each of the component stocks in the index are determined as if one were buying an equal dollar amount of each stock in the index. Equal dollar weighted indexes are usually rebalanced to equal weightings either quarterly, semi-annually, or annually. ETF(s) Exchange Traded Fund(s) Effective Date Date on which Index Constituent changes from a Semi-annual Review take effect in the calculation of the Index which is the first Business Day on or following 15th June and 15th December. Exchange Traded Fund(s) Exchange Traded Fund(s) are open-ended registered investment companies under the Investment Company Act of 1940, which have received certain exemptive relief from the SEC to allow secondary market trading in the ETF shares. ETFs are index-based products, in that each ETF holds a portfolio of securities that is intended to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the underlying benchmark index.*
F Free-float Percentage of shares of an Index Constituent not held by holders owning 5% or more of the share capital. It is calculated as: 100% x (number of shares available to the public)/(number of Outstanding Shares)
I Index Osmosis Climate Solutions Index Index Calculation Agent The Index is calculated by Quantitative Techniques (“QT”), a department within HSBC Global Research, which is a business unit of HSBC Bank plc. QT provides an independent service offering indices and data products to customers including users of the HSBC Indices. QT operates independently from the Osmosis Investment Management LLP from which it is both structurally and physically separated. Index Constituent Company whose shares are used to calculate the Index Value. Index Provider The sponsor of the Reference Index. Currently HSBC Global Research, a business unit of HSBC Bank plc. Index Rules The rules defining calculation, maintenance, governance and publication of the Index Series. Index Shares The number of shares of an Index Constituent used to calculate the Index Value. Index Sponsor Osmosis Investment Management LLP. The Index Sponsor was solely responsible for developing the Index and has influence over future changes in the Index Rules. Index Universe The list of all listed companies which qualify for entry into the Index before any quantitative criteria are applied. Index Value Calculated value of the Index. Applies to both capital (price) return and total return calculations. Intraday Indicative Value (IIV) An Intraday Indicative Value is published by NYSE Alternext US for each ETF as a reference value to be used in conjunction with other ETF market information. The Intraday Indicative Value for an ETF is typically published under a separate symbol every 15 seconds over the Consolidated Tape and calculated throughout the trading day based on the last sale prices of the securities specified for creation and redemption plus any estimated cash amounts associated with the creation unit, all on a per-ETF share basis. This value is also referred to as an “Underlying Trading Value”, “Indicative Optimized Portfolio Value (IOPV)”, and “Intraday Value”, in various places such as the prospectus and marketing materials for different ETFs. The Intraday Indicative Value is designed to give investors a sense of the relationship between a basket of securities that are representative of those owned in the ETF and the share price of the ETF on an intraday basis.
M Market Capitalization The Outstanding Shares for each listed Index Constituent multiplied by the share price. Market Disruption Event where trading or index calculation does not take place. Mining Company Classified as Mining within the HSBC Index Universe. Modified Market Capitalization Index This index is set up much like a Market Capitalization Weighted Index, however, there has been an adjustment to the weights of one or more of the components. This is typically done to avoid having an index that has one or a few stocks representing a disproportionate amount of the index value.
N Net Asset Value (NAV) The NAV of an ETF is determined in a manner consistent with other mutual funds. The NAV is calculated by taking the total assets of the ETF, less liabilities, divided by the number of ETF shares outstanding. Nuclear Power Company Constituents of the Reference Index classified as Nuclear and classified as Utilities in the GICS classification structure.
O Oversight Committee A committee convened by the Index Sponsor and charged with issues of index governance. Outstanding Shares The number of a company’s shares held by public investors or by the company’s officers. Shares that a company repurchases itself (treasury stock) and shares that the company has authorised but not issued are not considered to be outstanding.
P Portfolio Composition File This is a file created by the ETF fund manager or trustee each day after the market close. Its purpose is to tell Authorized Participants the securities and share quantities that would be required to effect a Creation or Redemption on the next trading day. NYSE Alternext US also uses the Portfolio Composition File to calculate the Intraday Indicative Value for the majority of ETFs listed on NYSE Alternext US. Premium/Discount The amount (stated in dollars or percent) by which the selling or purchase price of an ETF is greater than (Premium) or less than (Discount) its face amount/value or net asset value (NAV). See also Net Asset Value (NAV). Price Weighted Average A price weighted average is computed by taking the average of the market prices of the stocks that make up a particular index. Since the value of the index is based on averaging the prices of the components of the index, the index must have equal share quantities of each of the stocks. Price Return Index The calculated returns using only the price development of the Index Constituents. Publication Time 08:00 a.m. (UK time)
R Reference Index The HSBC Climate Change Universe. Required Number The required number of Index Constituents at any time, currently 100.
S Semi-annual Review Procedure for reviewing the list of Index Constituents which make up the Index Semi-annual Review Date Date from which data for the Semi-annual Review is taken which is the last business day in the months of [May and November] Symbology Several data elements related to ETFs are published daily using a combination of the IIV and the two character extensions defined below. (Note: Data elements related to iShares MSCI index funds are not yet published under this method).
  • IIV.DV: The accumulated dividend per ETF share, net of expenses, through and including the previous day’s close.
  • IIV.EU: The estimated cash amount per Creation Unit, for Creations/Redemptions executed. The estimated cash amount per Creation Unit is designed to give Authorized Participants an idea of approximately how much cash per creation unit will be needed to create or redeem ETF shares on a given day. The methodology used to determine this amount varies among the different fund managers and trustees according to their investment policies.
  • IIV.NV: The prior day’s per share Net Asset Value (NAV). The NAV of an ETF is determined in a manner consistent with other mutual funds. The NAV is calculated by taking the total assets of the ETF, less liabilities, divided by the number of ETF shares outstanding.
  • IIV.TC: The total cash required per Creation Unit for Creations/Redemptions executed the prior day to ensure that the Creations and Redemptions occur at NAV. This ensures that existing ETF shares do not experience any dilution in value as a result of Creation and Redemption activity.
  • IIV.SO: The shares outstanding as of the prior day (in thousands). Since ETFs are open-ended, the number of shares outstanding for an ETF may change on any day that the market is open.
T Total Return Index The calculated returns with price development and re-investments of net dividend income of the Index Constituents.
W Weighting Factor Multiplier applied to Index Shares in order to modify weighting at Semi-annual Review.