State Street Global Advisors (SSgA)*, the asset management arm
of State Street Corporation (NYSE:STT), today announced that the
SPDR Blackstone / GSO Senior Loan exchange traded fund (ETF)
(Symbol:SRLN) began trading on the NYSE Arca on April 4, 2013.
Developed by SSgA and GSO Capital Partners LP, the global credit
business of The Blackstone Group L.P. (NYSE:BX), one of the world’s
largest alternative asset managers, the SPDR Blackstone / GSO
Senior Loan ETF is the first actively managed ETF to provide
exposure to senior loans.
“Given the high turnover of senior loans and the critical
importance of credit selection, we believe an active strategy
provides a key advantage to investors who want access to this
corner of the market. Blackstone / GSO’s rigorous approach and
disciplined credit analysis made them an obvious choice to help us
bring this product to clients and we are excited about the
partnership,” said James Ross, senior managing director and global
head of SPDR Exchange Traded Funds at SSgA. “The SPDR Blackstone /
GSO Senior Loan ETF is the latest example of our commitment to
developing ETFs that democratize access to institutional asset
classes, strategies and expertise.”
The ETF is designed to seek high current income, preserve
capital, and outperform the Markit iBoxx USD Liquid Leveraged Loan
Index and the S&P/LSTA U.S. Leveraged Loan 100 Index. Usually
rated below investment grade, it is typical in the loan market to
expect that 30 to 35 percent of loans will fall out of the index in
any given year, so the ability to anticipate and react quickly to
changes in the market through an active strategy is potentially
advantageous.
“SSgA is a pioneer in the ETF market and we are pleased to join
them in bringing the first actively managed senior loan ETF to
investors,” said Lee Shaiman, managing director, The Blackstone
Group. “Together we bring significant expertise to the asset class
in a transparent and accessible product for all investors.”
Potential Benefits of SRLN
- SRLN’s expense ratio is .90 percent –
significantly lower than the average expense ratio of senior loan
mutual funds (A Shares: 1.11 percent, C Shares: 1.78 percent)
- Access to GSO / Blackstone’s senior
loan portfolio management, a comprehensive investment process based
on thorough due diligence and judgment and a seasoned team with a
combined 20+ years of experience in leveraged finance
- An investment strategy designed to
generate higher risk adjusted returns while seeking to maintain
capital preservation
- The core advantages of the ETF
structure, including transparency, intraday trading liquidity and
no investment minimums
For more information about the SPDR Blackstone / GSO Senior Loan
ETF, visit www.spdrs.com.
SSgA manages more than $340 billion** in SPDR ETF assets
worldwide (as of December 31, 2012) and is one of the largest ETF
providers globally.
About Blackstone
Blackstone is one of the world’s leading investment and advisory
firms. We seek to create positive economic impact and long-term
value for our investors, the companies we invest in, the companies
we advise and the broader global economy. We do this through the
commitment of our extraordinary people and flexible capital. Our
alternative asset management businesses include the management of
private equity funds, real estate funds, hedge fund solutions,
credit-oriented funds and closed-end funds. Blackstone also
provides various financial advisory services, including financial
and strategic advisory, restructuring and reorganization advisory
and fund placement services. Further information is available at
www.blackstone.com. Follow us on Twitter @Blackstone.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of
international and domestic asset classes. SPDR ETFs are managed by
SSgA Funds Management, Inc., a registered investment adviser and
wholly owned subsidiary of State Street Bank and Trust Company. The
funds provide professional investors with the flexibility to select
investments that are precisely aligned to their investment
strategy. Recognized as industry pioneer, State Street created the
first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY). Since
then, we’ve sustained our place as an industry innovator through
the introduction of many ground-breaking products, including
first-to-market launches with gold, international real estate,
international fixed income and sector ETFs. For more information,
visit www.spdrs.com.
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.
*SPDR ETFs are managed by SSgA Funds Management, Inc., a
registered investment adviser and wholly owned subsidiary of State
Street Bank & Trust Company.
**This AUM includes the assets of the SPDR Gold Trust (approx.
$72.2 billion as of December 31, 2012), for which State Street
Global Markets, LLC, an affiliate of State Street Global Advisors,
serves as the marketing agent.
ETFs trade like stocks, are subject to investment risk,
fluctuate in market value and may trade at prices above or below
the ETFs net asset value. Brokerage commissions and ETF expenses
will reduce returns.
Investments in Senior Loans are subject to credit risk and
general investment risk. Credit risk refers to the possibility that
the borrower of a Senior Loan will be unable and/or unwilling to
make timely interest payments and/or repay the principal on its
obligation. Default in the payment of interest or principal on a
Senior Loan will result in a reduction in the value of the Senior
Loan and consequently a reduction in the value of the Portfolio's
investments and a potential decrease in the net asset value ("NAV")
of the Portfolio.
Investing in high yield fixed income securities, otherwise known
as "junk bonds", is considered speculative and involves greater
risk of loss of principal and interest than investing in investment
grade fixed income securities. These Lower-quality debt securities
involve greater risk of default or price changes due to potential
changes in the credit quality of the issuer.
Actively managed ETFs do not seek to replicate the performance
of a specified index.
These investments may have difficulty in liquidating an
investment position without taking a significant discount from
current market value, which can be a significant problem with
certain lightly traded securities.
The Fund is actively managed and may underperform its
benchmarks. An investment in the fund is not appropriate for all
investors and is not intended to be a complete investment program.
Investing in the fund involves risks, including the risk that
investors may receive little or no return on the investment or that
investors may lose part or even all of the investment.
Distributor: State Street Global Markets, LLC, member FINRA,
SIPC, a wholly owned subsidiary of State Street Corporation.
References to State Street may include State Street Corporation and
its affiliates. Certain State Street affiliates provide services
and receive fees from the SPDR ETFs. ALPS Distributors, Inc., a
registered broker-dealer, is distributor for SPDR shares, MidCap
SPDRs and Dow Jones Industrial Average, all unit investment trusts
and Select Sector SPDRs.
Before investing, consider the funds' investment objectives,
risks, charges and expenses. To obtain a prospectus or summary
prospectus which contains this and other information, call
1-866-787-2257 or visit www.spdrs.com. Read it
carefully.
CORP-0707
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