State Street Global Advisors Launches MLP Strategy for Institutional Investors
September 13 2012 - 12:00PM
Business Wire
State Street Global Advisors (SSgA), the asset management
business of State Street Corporation (NYSE: STT), today announced
the launch of the SSgA S&P MLP Index Strategy. This passive
strategy offers institutional investors the opportunity to gain
exposure to master limited partnerships (MLPs) and other related
securities of companies in the energy infrastructure sector,
including those typically engaged in the transportation, storage,
refining, marketing, exploration, production, and processing of
minerals and natural resources.
SSgA’s S&P MLP Index strategy is managed using a replication
methodology to proportionally invest in the securities comprising
the S&P MLP Index, and is currently implemented as separately
managed accounts. These securities include both MLPs and publicly
traded limited liability companies (LLCs), characterized by
favorable tax structures and steady distribution payments. The
total annualized returns and distribution rate of the S&P MLP
Index as of June 30, 2012 are 7.72 percent (1-year), 26.88 percent
(3-year) and 9.62 percent (5-year) with a distribution rate of 5.99
percent.
“The current growth in the energy infrastructure industry offers
opportunities to investors seeking to diversify their portfolio
while generating stable revenue streams,” said Lynn Blake, senior
managing director of SSgA and CIO of Global Equity Beta Solutions.
“With SSgA’s S&P MLP Index strategy, clients have access to an
alternative asset class with high historical returns and
distribution rates.”
About State Street Global Advisors
State Street Global Advisors (SSgA) is a global leader in asset
management. The firm is relied on by sophisticated investors
worldwide for its disciplined investment process, powerful global
investment platform and access to every major asset class,
capitalization range and style. SSgA is the asset management
business of State Street Corporation, one of the world’s leading
providers of financial services to institutional investors.
Although investments in MLPs and related securities may provide
tax advantages (including potentially the absence of entity-level
taxation), interests in MLPs and related securities are complex and
involve risks that differ from investments in common stocks and may
have unique or adverse tax or other consequences on investors in
the SSgA S&P MLP Index Strategy (the “Strategy”); potential
investors should consult their tax, legal, financial or other
advisor before investing in the Strategy. The Strategy will likely
generate unrelated business taxable income, and may be
inappropriate for some investors.
This document provides summary information regarding the
Strategy. This document should be read in conjunction with the
Strategy's Disclosure Document, which is available from SSgA. The
Strategy Disclosure Document contains important information about
the Strategy, including a description of a number of risks.
Risk associated with equity investing include stock values which
may fluctuate in response to the activities of individual companies
and general market and economic conditions.
Derivative investments may involve risks such as potential
illiquidity of the markets and additional risk of loss of
principal.
There are a number of risks associated with futures investing
including but not limited to counterparty credit risk, currency
risk, derivatives risk, foreign issuer exposure risk, sector
concentration risk, leveraging and liquidity risks.
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