IBAT

IBAT is passively managed to hold a portfolio of US and non-US companies related to energy storage solutions. The index selects companies relevant to the theme, such as those involved in hydrogen, fuel cells, and batteries, by assessing revenue and patent exposure. For revenue exposure, the index uses granular data to break down revenue sources of eligible companies and identify those most exposed to the theme. For patent-based exposure, specialized metrics is used to screen for companies with high-quality patents and patent specialization linked to the theme. The selection process divides companies into tiers, depending on their revenue and/ or patent exposure. The index applies exclusionary ESG screens to filter out companies that are non-compliant with global standards, involved with controversial business activities, and have severe controversy ratings. The resulting portfolio is price-weighted with weighting factors based on market capitalization, subject to tier group, company, and concentration capping. The index reconstitutes annually and rebalances quarterly.