65 New Companies Added Based on Percentage of Women in Senior
Leadership Positions
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced recent
updates to the composition of its SSGA Gender Diversity Index (The
Index), which is designed to measure the performance of U.S. large
capitalization companies that demonstrate greater gender diversity
within senior leadership than other firms in their sector.
Following the annual rebalance on July 15, 2018, the Index now
comprises a total of 171 constituents. The top ten companies held
in the market capitalization weighted Index are Johnson &
Johnson, Wells Fargo & Company, Home Depot, Inc.,
ConocoPhillips, Caterpillar Inc., Starbucks Corporation, Biogen
Inc., S&P Global, Inc., MetLife, Inc. and Electronic Arts
Inc.
The Index is rebalanced on an annual basis to ensure
constituents continue 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, State
Street Global Advisors conducted a comprehensive review of the
companies listed in the Index and added 65 new companies that have
made their mark in achieving the highest levels of senior
leadership gender diversity within their sectors.
“The importance of gender diversity has received an increasing
amount of investors’ attention in the years that have followed the
2016 launch of the SSGA Gender Diversity Index,” said Lynn Blake,
chief investment officer of Global Equity Beta Solutions at State
Street Global Advisors. “However, despite evidence showing that
better gender diversity leads to better performance, there remains
a tremendous amount of work to do to continue moving the needle on
this important issue.”
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, State Street Global Advisors 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.
To help address the gender gap head-on, SHE incorporates an
innovative charitable component that focuses on strengthening the
next generation of women leaders - particularly in industries where
women have low representation today such as STEM (Science,
Technology, Engineering and Math). State Street Global Advisors is
directing a portion of their revenues and a match from the firm to
a Donor Advised Fund, which has awarded $25,000 grants to Black
Girls Code and Iridescent’s Technovation Challenge.
“Addressing the lack of female leaders, not only in the
boardroom but the pipeline as well, is an important step in
bringing gender parity to corporate leadership,” said Rakhi Kumar,
head of Asset Stewardship and ESG investing at State Street Global
Advisors. “In supporting organizations like Black Girls Code and
Iridescent’s Technovation Challenge., we hope that young women have
the opportunity to succeed and continue to push the boundaries to
break into traditionally male dominated fields like technology and
finance.”
About State Street Global Advisors
For four decades, State Street Global Advisors has served the
world’s governments, institutions and financial advisors. With a
rigorous, risk-aware approach built on research, analysis and
market-tested experience, we build from a breadth of active and
index strategies to create cost-effective solutions. As stewards,
we help portfolio companies see that what is fair for people and
sustainable for the planet can deliver long-term performance. And,
as pioneers in index, ETF, and ESG investing, we are always
inventing new ways to invest. As a result, we have become the
world’s third largest asset manager with nearly US $2.72 trillion*
under our care.
*This figure is presented as of June 30, 2018 and includes
approximately $53 billion of assets with respect to SPDR products
for which State Street Global Advisors Funds Distributors, LLC
(SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated.
Important Risk Information:
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
2186957.1.1.NA.RTL
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. * This
information should not be considered a recommendation to buy or
sell any security shown. It is not known whether the securities
shown will be profitable in the future.
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: https://www.businesswire.com/news/home/20180726005913/en/
State Street Global AdvisorsAndrew Hopkins, +1
617-664-2422Ahopkins2@StateStreet.com
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