corporate presentation - mvis indices...corporate presentation mvis 3 index concept 5 index...

MV Index Solutions (MVIS)

March 2020

Corporate Presentation

MVIS 3

Index Concept 5

Index Statistics 11

MVIS Indices Underlying ETPs 17

Contacts 18

Important Disclosures 19

Contents

2

MVIS has innovated the index market in many ways since its launch in 2011.

Moving beyond common index categories, we have introduced blue chip indices with benchmark

characteristics that are specifically designed to underlie exchange-traded products (ETPs).

The indices are built on three key factors: pure-play exposure, component liquidity, and index diversification.

In combination, those factors ensure an intelligent index design, tailor-made for ETPs.

MVIS only develops indices that capture potential investment themes. Our index selection provides

exposure to hard assets, international equity with a strong focus on emerging markets, digital assets, and

fixed income..

MVIS − Specialist for High Quality Indices

3

Data as of 31 March 2020.

AUM in % by Index Category AUM in USD by Index Category

54.44%22.79%

18.69%

4.08%0.00%

Hard Asset Indices Sector Indices

Country Indices Bond Indices

Digital Assets Indices

Index Category AUM (USD bn)

Hard Asset Indices 6.30

Sector Indices 2.64

Country Indices 2.16

Bond Indices 0.47

Digital Assets Indices 0.00

Close to 50% of MVIS Indices are licensed to underly exchange-traded products (ETFs) with currently USD

13.5 billion invested.

Many of the ETFs based on our indices are the largest in their competitive environment.

MVIS − Investable Index Design

4

Development of Indices, Exchange-Traded Products (ETPs) and AUM

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11/08 07/09 03/10 11/10 07/11 03/12 11/12 07/13 03/14 11/14 07/15 03/16 11/16 07/17 03/18 11/18 07/19 03/20

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Index Concept − Pure-Play

5

Following the Cash Flow

Globalisation has changed industries and economies and created more complex markets. The MVIS index

methodology approaches this complexity with a pure-play concept applied to countries and sectors.

MVIS indices provide a more accurate reflection of an economy than traditional indices and the pure-play

concept supports the opening of markets that have historically been difficult to access.

Country Level: Index exposure includes local companies as well as non-local companies incorporated

outside the target country that generate at least 50% of their revenues in the target country.

Sector Level: Index exposure includes companies that generate at least 50% of their revenues in the target

sector.

Pure-Play Selection Examples

Country Level - MVIS Mexico Index

Company Fresnillo plc

Incorporated United Kingdom

Total Revenues in 2019 $2,119,641,000

Revenues in Mexico $2,119,641,000

% of Total Revenues 100%

Sector Level - MVIS Global Coal Index

Company Aurizon Holdings Ltd.

Incorporated Australia

Total Revenues in 2019 $2,077,800,000

Revenues in global coal segment $1,233,600,000

% of Total Revenues 59%

Traditional index concepts that exclude non-local companies generating the majority of their revenues in

the target country of an index might miss key elements of the local economy.

The sector representation of an index can change significantly based on inclusion or exclusion of non-local

companies that meet the above mentioned revenue criteria.

Index Concept − Pure-Play

6

Data as of 31 March 2020. Discrepancies are caused by rounding.

MVIS Russia Index

With Non-Local Companies Without Non-Local Companies Difference

Sector Weight Count Weight Count Weight Count

Consumer Discretionary 0.00% 0 0.00% 0 0.00% 0

Consumer Staples 7.56% 2 4.66% 1 2.90% 1

Energy 40.06% 7 48.99% 7 -8.92% 0

Financials 10.25% 3 12.53% 3 -2.28% 0

Health Care 0.00% 0 0.00% 0 0.00% 0

Industrials 0.00% 0 0.00% 0 0.00% 0

Information Technology 0.00% 0 0.00% 0 0.00% 0

Materials 25.88% 8 23.83% 6 2.04% 2

Telecommunication Services 13.46% 5 6.58% 2 6.89% 3

Utilities 2.79% 1 3.41% 1 -0.62% 0

Real Estate 0.00% 0 0.00% 0 0.00% 0

Total 100% 26 100% 20 - 6

Index Concept − Liquidity

7

Review Q1 2020.

Setting the Stage for Investability

MVIS applies strict and demanding liquidity screenings to companies:

— Free float of at least 10%

— Full market capitalisation of at least USD 150 million

— Three months average daily trading volumes of at least USD 1 million at review date and at the time of

the previous two reviews

— At least 250,000 shares traded per month over the last six months at a review date and at the previous

two reviews

MVIS selection criteria and capping method typically result in a more liquid index.

Component Selection Criteria for MVIS Russia Index

Criteria Required GAZPROM SBERBANK

Full Market Capitalisation $150,000,000 $71,375,642,624 $75,905,105,920

Average daily trading volume (1) $1,000,000 $66,587,280 $51,103,356



Traded shares / per month (1) 250,000 171,892,214 59,539,841



Free-Float 10% 50% 48%

Mitigating Concentration Issues

MVIS elaborated capping scheme:

— Country and regional indices: Maximum of 8% cap for local and 4.5% for non-local companies

— Commodity and sector indices: Maximum of 8% cap (or 20% for selected indices)

— Special capping schemes for MVIS Australia Banks and MVIS Australia A-REITs

Index Concept − Diversification

8

Review Q1 2020. * in USD

Component Weightings MVIS Russia Index

Company Country Free Float Map Weight Capped Float Map Capped Weight Capping Factor

GAZPROM Russia 28,360,867,299 16.40% 6,786,947,391 8.00% 0.239306764

LUKOIL Russia 27,961,291,902 16.17% 6,786,947,391 8.00% 0.242726531

SBERBANK Russia 27,847,163,044 16.10% 5,938,578,967 7.00% 0.213256157

MMC Russia 17,137,985,311 9.91% 5,514,394,755 6.50% 0.32176447

NOVATEK Russia 10,669,579,003 6.17% 5,090,210,543 6.00% 0.477076981

… ... ... ... ... ... ...

ROSTTELECOM Russia 1,046,917,475 0.61% 1,046,917,475 1.23% 1

Cap factors guarantee well-balanced, diversified index eposure especially in markets dominated by few

large companies, thus large companies will not dominate an index.

Example MVIS Russia Index: Top 6 companies are capped, all other company weights increase; the

excess weight generated by capping is distributed across smaller companies, leading to „underweighted“

large- and „overweighted“ mid- and small cap companies.

Index Concept − Diversification

9

Review Q1 2020.

Weightings of MVIS Russia Index – Top 25 Components

0%

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Uncapped Weightings Capped Weightings

Real-time Transparency

Real-time index data and more at www.mvis-indices.com

— Index compositions and weightings

— Performance and charting tools

— Index history and statistics

— Factsheets

— Video research

— MVIS OneHundred expert commentaries

— News email service to receive index information,

review results, and the latest research

— Corporate action service/RSS Feed

— Licensing information

Index Concept − Transparency

10

http://www.mvis-indices.com/

MVIS Global Junior Gold Miners Index (MVGDXJ)

Most liquid junior companies in the global gold and silver mining industry.

Contains 75 components.

Full Market Cap: USD 89.16 billion.

Index history back to 31.12.2003.

Licensed to underlie ETFs. AUM: USD 4.367 billion.

Index Statistics

11

Data as of 31.03.2020.

Liquidity

Fundamental Data

Country and Size Breakdown

Top 5 Countries Count Weight

Canada 39 52.57%

Australia 11 23.11%

South Africa 3 10.03%

Peru 1 4.45%

United States 4 2.94%

Top 5 Size Count Weight

Large-Cap - -

Mid-Cap 23 69.29%

Small-Cap 42 30.57%

Micro-Cap 1 0.14%

Total 66 100.00%

Ratios (June 2019) Value

Price/Earnings (incl. Negative) Trailing -68.97

Price/Earnings (incl. Negative) Projected 31.16

Price/Book 1.12

Dividend Yield 0.82

Price/Sales 1.84


Canada 45 50.91%

Australia 13 22.63%

South Africa 3 9.97%

United Kingdom 2 3.14%

Jersey 2 2.84%

Top 5 Size Count Weight

Large-Cap 1 2.58%

Mid-Cap 16 54.02%

Small-Cap 44 40.39%

Micro-Cap 14 3.01%

Total 75 100.00%

Average Daily Trading Volume Period Volume (USD)

Average 01.01.2020-31.03.2020 11,051,363

Average 01.10.2019-31.12.2019 7,540,631

Average 01.07.2019-30.09.2019 9,710,489

Weighted Average 01.01.2020-31.03.2020 23,583,208



Ratios (March 2020) Value

Price/Earnings (incl. Negative) Trailing 93.98


Price/Book 1.44

Dividend Yield 0.71

Price/Sales 2.11

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MVGDXJ Total Return NYSE Araca Gold Miners Gross Total Return

MVIS Russia Index (MVRSX)

Largest and most liquid companies in Russia.


Full Market Cap: USD 411.09 billion.

History back to 28.09.2007.


Index Statistics

12

Data as of 31.03.2020.

Liquidity

Fundamental Data



Russia 19 80.46%

Netherlands 2 8.10%


Jersey 1 3.20%

British Virgin Islands 1 2.65%

Size Count Weight

Large-Cap 18 84.08%

Mid-Cap 7 15.92%

Small-Cap - -

Micro-Cap - -

Total 25 100.00%




Price/Book 0.93

Dividend Yield 5.61

Price/Sales 0.83


Russia 20 81.79%

Netherlands 2 8.27%

Jersey 1 4.51%

British Virgin Islands 1 2.11%


Size Count Weight

Large-Cap 17 80.63%

Mid-Cap 9 19.37%

Small-Cap - -

Micro-Cap - -

Total 26 100.00%


Average 01.01.2020-31.03.2020 26,423,417

Average 01.10.2019-31.12.2019 19,931,864

Average 01.07.2019-30.09.2019 17,484,719







Price/Book 1.05

Dividend Yield 6.69

Price/Sales 0.82

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MVRSX Total Return MSCI Russia Net Return USD

MVIS Global Agribusiness Index (MVMOO)

Largest and most liquid companies in the global agribusiness segment.


Full Market Cap: USD 478.48billion.



Index Statistics

13

Data as of 31.03.2020.

Liquidity

Fundamental Data




Germany 2 9.85%

Canada 1 6.32%

Norway 4 6.12%

Japan 4 5.99%

Size Count Weight

Large-Cap 29 86.64%

Mid-Cap 22 12.54%

Small-Cap 4 0.82%

Micro-Cap - -

Total 55 100.00%




Price/Book 2.00

Dividend Yield 1.73

Price/Sales 0.93



Germany 2 8.13%

Canada 1 7.04%

Japan 4 6.07%

Norway 4 5.25%

Size Count Weight

Large-Cap 20 76.29%

Mid-Cap 27 22.14%

Small-Cap 5 1.57%

Micro-Cap - -

Total 52 100.00%


Average 01.01.2020-31.03.2020 30,257,588

Average 01.10.2019-31.12.2019 23,129,014

Average 01.07.2019-30.09.2019 23,017,727







Price/Book 1.86

Dividend Yield 2.26

Price/Sales 0.98

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MVMOO Total Return MSCI ACWI Select Agriculture Producers IMI Net Return

MVIS US Listed Oil Services 25 Index (MVOIH)

Largest and most liquid US-listed companies in the oil services sector.


Full Market Cap: USD 53.56billion.



Index Statistics

14

Data as of 31.03.2020.

Liquidity

Fundamental Data




Curacao 1 19.75%


Luxembourg 1 4.82%

Switzerland 1 4.64%

Size Count Weight

Large-Cap 6 48.97%

Mid-Cap 10 40.82%

Small-Cap 7 10.21%

Micro-Cap - -

Total 23 100.00%



Price/Earnings (incl. Negative) Projected -70.94

Price/Book 0.73

Dividend Yield 2.86

Price/Sales 0.84



Curacao 1 18.11%


Luxembourg 1 5.77%

Netherlands 1 4.54%

Size Count Weight

Large-Cap 4 38.82%

Mid-Cap 3 14.47%

Small-Cap 13 42.52%

Micro-Cap 5 4.20%

Total 25 100.00%


Average 01.01.2020-31.03.2020 14,634,848

Average 01.10.2019-31.12.2019 14,216,201

Average 01.07.2019-30.09.2019 15,604,207







Price/Book 0.64

Dividend Yield 3.72

Price/Sales 0.69

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MVOIH Total Return Dow Jones U.S. Selection Oil Equipment & Services TR

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MVDA

A market cap-weighted index

Tracks the performance of the 100 largest digital assets

Benchmark/universe for the MVIS CryptoCompare Digital Assets Indices

Contains three sub-indices (large, mid and small capitalization)

Total market capitalization - USD 176.12 billion

Index history back to 31 December 2014

No liquidity screen

MVIS CryptoCompare Digital Assets 100 Index (MVDA)

Data as of 31.03.2020. *Performance since inception is annualized

Liquidity

Fundamental Data




Curacao 1 19.75%


Luxembourg 1 4.82%

Switzerland 1 4.64%




Price/Book 0.73

Dividend Yield 2.86

Price/Sales 0.84

Top 5 Components

Bitcoin 66.68%

Ethereum 8.25%

XRP 4.36%

Tether 2.64%

Bitcoin Cash 2.28%

Other 15.78%

Top 5 Components Period Volume (USD)

Average 1 Month March Review 222,603,394

Weighted Average 1 Month March Review 5,390,756,787

Index Performance Value Index Records Value

Year-to-Date Performance -7.79% All Time High/Low 8,877 / 50

1-Year Performance 15.99% 52-Weeks High/Low 3,768 / 1,339

Since Inception 71.27% Quarter High/Low 2,892 / 1,339

Month High/Low 2,459 / 1,339

Liquidity

15 No part of this material may be reproduced or referred to in any other publication without express

written permission of MV Index Solutions. All rights are reserved.

Index Statistics

16

Performance of Selected MVIS Indices versus Peer Indices

Risk Statistics of Selected MVIS Indices versus Peer Indices

Data as of 31 March 2020. Risk data based on 250 days.

MVIS Russia Peer IndexMVIS Global Junior

Gold MinersPeer Index

MVIS Global

AgribusinessPeer Index

MVIS US Listed Oil

Services 25Peer Index

YTD -32% -36% -32% -20% -25% -24% -70% -70%

2019 41% 51% 42% 41% 22% 13% -3% 2%

2018 -6% 0% -11% -8% -6% -9% -45% -42%

2017 5% 5% 6% 12% 22% 20% -20% -18%

2016 47% 55% 75% 55% 13% 15% 28% 29%

2015 1% 4% -19% -25% -9% -14% -25% -27%

2014 -44%% -46% -21% -12% 0% -1% -24% -22%

Since 2014 41% 62% 29% 36% 7% -8% -88% -86%

MVIS Russia Peer IndexMVIS Global Junior

Gold MinersPeer Index

MVIS Global

AgribusinessPeer Index

MVIS US Listed Oil

Services 25Peer Index

Volatility 33% 32% 45% 38% 25% 25% 62% 61%

Correaltion 91% 98% 98% 100%

Alpha 2% -12% 4% -3%

Beta 0.76 1.14 0.96 1.01

Alpha ‐ here defined as the excess rate of return of MVIS Indices relative to peer indices.

Beta ‐ here defined as the measure of the volatility, or systematic risk of MVIS Indices in comparison to peer indices.

MVIS Indices Underlying Exchange Traded Products

Data as of 31 March 2020. * in mln USD

Type Underlying Index Index Ticker AUM*

Har

d A

sset

s / S

ecto

r

MVIS Global Junior Gold Miners MVGDXJTR 4,075.94

MVIS US Listed Semiconductor 25 MVSMHTR 1,899.43

MVIS Global Agribusiness MVMOOTR 492.80

MVIS US Listed Biotech 25 MVBBHTR 319.29

MVIS US Listed Oil Services 25 MVOIHTR 253.81

MVIS eSports & Video Gaming MVESPOTR 183.41

MVIS US Listed Pharmaceutical 25 MVPPHTR 179.04

MVIS US Business Development Comp. MVBIZDTG 148.13

MVIS Global Rare Earth/Strategic Metals MVREMXTR 113.10

MVIS Global Mortgage REITs MVMORTTR,

MVMORT93.45

MVIS US Listed Retail 25 MVRTHTR 81.38

MVIS Global Gaming MVBJKTR 21.98

MVIS North America Energy Infrastructure Index MVEINCTG 18.05

MVIS Global Coal MVKOLTR 17.23

MVIS Global Uranium & Nuclear Energy MVNLRTR 16.46

MVIS Global Oil Refiners MVCRAKTR 10.41

MVIS Global Unconventional Oil & Gas MVFRAKTR 5.95

Type Underlying Index Index Ticker AUM*

Co

un

try

MVIS Russia MVRSXTR,

MVRSX864.87

MVIS Vietnam MVVNMTR 265.71

MVIS India Small-Cap MVSCIFTR 70.02

MVIS Brazil Small-Cap MVBRFTR 43.44

MVIS GDP Africa MVAFKTR 31.47

MVIS Russia Small-Cap MVRSXJTR 23.71

MVIS Egypt MVEGPTTR 21.98

MVIS Indonesia MVIDXTR 21.84

Bo

nd

s MVIS US Investment Grade Floating Rate MVFLTR 470.87

MVIS EM Aggregate Bond MVEMAG 13.34

Au

stra

lia (

AU

D)

MVIS Australia Equal Weight MVMVWTRG 524.30

MVIS Australia A-REITs MVMVATRG 103.37

MVIS Australia Small-Cap Dividend Payers MVMVSTRG 30.02

MVIS Australia Energy & Mining MVMVRTRG 26.75

MVIS Australia Banks MVMVBTRG 21.60D

A MVIS Bitcoin US OTC Spot Index MVBTCO 0.40

17

Contacts

Management/Business Development

Thomas Kettner, Managing Director

Phone:+49 69 4056 695 31

Email: [email protected]

Website

www.mvis-indices.com

Media Relations and Marketing

Séverine Thäsler-Jäger, Marketing Manager

Phone: +49 69 4056 695 53

E-mail: [email protected]

18

mailto:[email protected]

http://www.mvis-indices.com/?utm_source=mvis&utm_medium=presentationl&utm_campaign=corporate

mailto:[email protected]

Important Disclosure

19

Copyright © 2019 by MV Index Solutions GmbH (“MVIS”). All rights reserved. MVIS is a registered trademark of Van Eck Associates Corporation that has been licensed to MV Index Solutions GmbH.

Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission. All information provided by MVIS is impersonal and not tailored to the needs of any person, entity or

group of persons. MVIS receives compensation in connection with licensing its indices to third parties. You require a license from MVIS to launch any product that is linked to an MVIS index to use the index data

for any business purpose and for all use of the MVIS name or name of the MVIS index. Past performance of an index is not a guarantee of future results.

It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. MVIS does not sponsor, endorse, sell, promote or

manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. MVIS makes no assurance that

investment products based on the index will accurately track index performance or provide positive investment returns. MVIS is not an investment advisor, and it makes no representation regarding the advisability

of investing in any such investment fund or other investment vehicle. A decision to invest in any such investment fund or other investment vehicle should not be made in reliance on any of the statements set forth

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Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum

or similar document that is prepared by or on behalf of the issuer of the investment fund or other vehicle. Inclusion of a security within an index is not a recommendation by MVIS to buy, sell, or hold such security,

nor is it considered to be investment advice.

These materials have been prepared solely for informational purposes based upon information generally available to the public from sources believed to be reliable. No content contained in these materials

(including index data, ratings, credit-related analyses and data, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse-engineered, reproduced or

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