Annual Reconstitution

Annual reconstitution defines the full review process for index eligibility, structure, and methodology.

Purpose

While quarterly rebalancing adjusts asset weights based on short-term market movements, annual reconstitution involves a comprehensive review of:

• The constituent universe (eligibility, sector classification, free float, etc.)

• The weighting approach and caps

• Inclusion/exclusion criteria

• Any methodology enhancements

It ensures that each OLTA index continues to reflect its intended strategy in a dynamic market environment.

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Reconstitution Process

• Timing: Conducted every December and implemented on the first Monday of January

• Scope: Applies to all OLTA indices (Core and Sector-based)

• Review Components:

  • Reevaluation of eligible assets against updated filters

  • Updates to sector tagging or index thematics

  • Adjustment of methodology parameters if approved by governance

• Governance: Any changes beyond constituent updates such as methodology logic or weighting models must be approved through formal OLTA governance procedures.

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Transparency & Publication

• A pre-reconstitution Notice of Change will be published at least 7 days prior to implementation

• Final Reconstitution Summary Reports will be published and archived on-chain for auditability

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This ensures that OLTA indices remain consistent with their mandate while adapting to structural evolutions in the crypto market.