Index name

MarketVector Global Uranium and Nuclear Energy Infrastructure Index

Overview

The index measures the performance of companies that are involved in the uranium and nuclear energy infrastructure sectors.

Methodology summary

• 1. Eligible universe

  The Index includes only the largest and most liquid listed companies that generate:

  • at least 50% (25% for current constituents) of their revenues or expected revenues from uranium mining or uranium mining projects under development, and/or
  • at least 50% (greater than 0% for current constituents) of their revenues from nuclear energy infrastructure. This may include companies whose business activity involves: projects related to the development and commercialisation of nuclear fusion technology; molten salt nuclear reactor research; construction, engineering, and maintenance of nuclear power facilities and nuclear reactors; equipment, technology, or services to the nuclear power industry.

  To be eligible for inclusion, companies must have:

  • Market cap exceeding US$150 million
  • 3-month average daily trading volume of at least US$1 million
  • At least 250,000 shares traded each month over the previous 6 months

  Existing constituents are subject to lower thresholds to maintain inclusion in the Index.

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• 2. Business involvement screening

  The Fund does not have an ESG investment objective, nor does the Fund promote ESG outcomes. The Index applies screens to exclude companies that violate certain criteria included in the following categories: Norm-Based Research, controversial weapons and business involvement.

  Norm-Based Research

  Identifies and evaluates allegations of companies failing to abide by established norms for responsible business conduct as set out in relevant international initiatives and guidelines covering human rights, labour rights, environmental and corruption standards which are aligned with the Principles of the U.N. Global Compact and the OECD Guidelines for the Multinational Enterprises. The results are assessed and categorised using ISS ESG’s traffic light system (Green, Amber, Red) and assigns a 1-10 score to a company based on their link with any violations of international standards. Companies that are assessed as having a score of 9 or 10 are consequently not eligible for inclusion in the Index. A score of 9 or 10 represents that a company has a verified and unaddressed severe or very severe failure to respect established norms. In addition, the severity of individual controversies faced by a company is assessed as a measure of the reported risk or impact on society or environment, considering the degree of corporate responsibility. Companies reportedly contributing to or causing a critical adverse impact on matters including union rights, work discrimination, bribery, child labour, environmental protection, human rights, forced labour, labour standards, money laundering, labour discrimination, (gender and racial) and boycotts are considered “very severe” and also not eligible for inclusion in the Index. These standards are reflected in the link between corporate involvement (nature of company’s involvement in the controversy) and corporate responsibility (degree of company’s participation in the controversy), both of which are taken into consideration in the analysis of Severity indicators.

  The controversial weapons

  Screen assigns an overall red, amber or green flag to companies based on their involvement in matters including anti-personnel mines, biological or chemical weapons, cluster munitions, depleted uranium, incendiary weapons, nuclear weapons outside the Non-Proliferation Treaty and white phosphorous. Companies that are assessed to have a verified involvement in the development, production, acquisition, stockpiling, retention, or transfer of these controversial weapons are assigned a red flag and consequently not eligible for inclusion in the Index. This assessment covers companies that are directly involved in controversial weapons and key components thereof through its own operations, through a joint venture, through a subsidiary from which there is a majority ownership (≥50%) or controlling shareholder stake or as a bond issuer issuing debt for a company this is verifiably involved in controversial weapons.

  The business involvement

  Screen aims to exclude companies whose gross revenues are derived from involvement in certain sectors or business activities. Issuers with any involvement in the production or distribution of civilian firearms or the provision of services to the civilian firearm industry are not eligible for inclusion in the Index. Additionally, companies with gross revenue exceeding 5% to the following activities are also not eligible for inclusion:

  • Production, distribution, or provision of services pertaining to tobacco
  • Development, operation, management, distribution, or provision of services pertaining to gambling
  • Extraction, processing, exploration, or provision of services to oil sands
  • Mining, exploration, or provision of services to thermal coal

  The assessment covers companies that are directly involved through its own operations as well as operations that are ≥20% owned by the company. The effectiveness of an exclusionary screen is limited by the accuracy, completeness and accessibility of information and disclosure the relevant entity makes available or is willing to make available. There may be instances where the above screens may not exclude a company if data about the company is incomplete, inaccurate or unavailable.

  You may have differing views, opinions and understanding of the meaning of the terminology used in this section and PDS, to VanEck or MarketVector or their third party providers (including ESG research providers), and therefore your expectations of permitted investments may be different to the actual investments of the Fund.

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• 3. Weighting

  The Index is a market capitalisation weighted index which applies a capping scheme to individual companies for diversification purposes. The largest constituent has a maximum weight of 15%.

  The Index includes a minimum of 25 companies.

  Index provider

  MarketVector Indexes (MarketVector) is a related body corporate of VanEck Investments Limited, the responsible entity and issuer of URAN.

  MarketVector Disclaimer

  The MarketVector Global Uranium and Nuclear Energy Infrastructure Index is created and maintained by MarketVector. MarketVector does not sponsor, endorse, issue, sell, or promote URAN and makes no representation or warranty, express or implied, to VanEck or any member of the public regarding the advisability of investing in securities generally or in URAN particularly and bears no liability with respect to URAN. Read the PDS for the full index disclaimer.