State Street Global Advisors (SSGA), the asset management
business of State Street Corporation (NYSE: STT), announced recent
updates to the composition of its SSGA Gender Diversity Index
(Index).
The Index, first launched in March 2016, is a quantitative index
driven by the highest percentages of women on boards and in senior
leadership positions at a given company within their sectors, and
tracks US exchange-listed large capitalization companies that meet
those criteria.
After the annual rebalance on July 15, 2017, the Index now
consists of a total of 171 constituents. The top ten companies held
in the market capitalization weighted Index are Pfizer Inc.,
Coca-Cola Company, PepsiCo, Inc., International Business Machines
Corporation, Mastercard Incorporated Class A, Amgen Inc.,
McDonald's Corporation, U.S. Bancorp, CVS Health Corporation and
Lockheed Martin Corporation.
“We applaud the new additions to the SSGA Gender Diversity Index
for their efforts in confronting the gender diversity challenge by
hiring and retaining women in senior leadership,” said Ronald
O’Hanley, president and chief executive officer of State Street
Global Advisors. “As one of the world’s largest asset managers, we
use our voice, our vote and our solutions to promote change, such
as better gender diversity, that leads to better performance.”
The SSGA Gender Diversity Index is rebalanced on an annual basis
to ensure that the selection of the constituents continues to
reflect the underlying Index objective: tracking the performance of
US large-capitalization companies that are leaders within their
sectors in advancing women through gender diversity on their boards
of directors and in senior leadership positions. Pursuant to the
rules-based Index methodology, SSGA conducted a comprehensive
review of the companies listed in the Index and added 61 new
companies that have made their mark in achieving the highest levels
of senior leadership gender diversity within their sectors.
“Companies in the Index have demonstrated a track record of
employing women in their senior management ranks,” said Lynn Blake,
chief investment officer for SSGA’s Global Equity Beta Solutions.
“By focusing on US companies that have the highest percentages of
women in senior leadership positions relative to their sector
peers, we designed this Index to reflect companies that are
committed to gender diversity.”
According to a 2015 MSCI1 study that explored global trends in
gender diversity on corporate boards between December 2009 and
August 2015, companies with at least three female board members, or
companies with a higher percentage of women on the board than its
country’s average, performed better as measured by return on equity
(10.1 percent per year versus 7.4 percent for all other
companies).2 Despite these findings, American women account for an
average of just 16 percent of the members of executive teams.3
In March 2016, SSGA introduced the SPDR® SSGA Gender Diversity
Index ETF (the “Fund”) (Ticker: SHE), which is designed to track
the performance of the SSGA Gender Diversity Index. The Fund is
distributed by State Street Global Advisors Funds Distributors,
LLC.
About State Street Global Advisors
For nearly four decades, State Street Global Advisors has been
committed to helping financial professionals and those who rely on
them achieve their investment objectives. We partner with
institutions and financial professionals to help them reach their
goals through a rigorous, research-driven process spanning both
active and index disciplines. We take pride in working closely with
our clients to develop precise investment strategies, including our
pioneering family of SPDR ETFs. With trillions* in assets under
management, our scale and global footprint provide access to
markets and asset classes, and allow us to deliver expert insights
and investment solutions.
State Street Global Advisors is the investment management arm of
State Street Corporation.
* Assets under management were $2.60 trillion as of June 30,
2017. AUM reflects approx. $34 billion (as of June 30, 2017) with
respect to which State Street Global Advisors Funds Distributors,
LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street
Global Advisors are affiliated.
Important Risk Information:
Investing involves risk including the risk of loss of
principal.
Gender diversity risk The returns on a portfolio of
securities that excludes companies that are not gender diverse may
trail the returns on a portfolio of securities that includes
companies that are not gender diverse.
Concentrated investments in a particular sector or
industry (technology sector and electronic media companies) tend to
be more volatile than the overall market and increases risk that
events negatively affecting such sectors or industries could reduce
returns, potentially causing the value of the Fund’s shares to
decrease.
Equity securities may fluctuate in value in response to
the activities of individual companies and general market and
economic conditions.
Non-diversified funds that focus on a relatively small
number of securities tend to be more volatile than diversified
funds and the market as a whole.
Passively managed funds hold a range of securities that,
in the aggregate, approximates the full Index in terms of key risk
factors and other characteristics. This may cause the fund to
experience tracking errors relative to performance of the
index.
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.
Distributor: State Street Global Advisors Funds
Distributors, LLC, member FINRA, SIPC, an indirect 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.
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.
Not FDIC Insured • No Bank Guarantee • May Lose Value
The whole or any part of this work may not be reproduced, copied
or transmitted or any of its contents disclosed to third parties
without State Street’s express written consent.
State Street Corporation, One Lincoln Street, Boston, MA
02111-2900.
© 2017 State Street Corporation - All Rights Reserved
CORP-3203
1 The methodology used in MSCI’s study is different than that of
the Index, and as such, the results of the study should not be
viewed as indicative of the future performance of the Index.
2 Past performance is not a reliable indicator of future
performance. It is not possible to invest directly in an index.
3 Lee, Linda-Eling , et al. Women on Boards: Global Trends in
Gender Diversity on Corporate Boards, MSCI, November 2015. Accessed
on February 17th, 2016 at:
https://www.msci.com/documents/10199/04b6f646-d638-4878-9c61-4eb91748a82b
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version on businesswire.com: http://www.businesswire.com/news/home/20170817005551/en/
State Street CorporationAndrew Hopkins, +1
617-664-2422Ahopkins2@StateStreet.com
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