State Street Global Advisors Launches Its First ESG Money Market Fund
July 02 2019 - 8:15AM
Business Wire
The ESG Liquid Reserves Fund leverages the asset manager’s ESG
scoring system, R-Factor™
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced the launch of
the State Street ESG Liquid Reserves Fund (the “Fund”) which seeks
to apply financially material environmental, social, and governance
(ESG) scores to the management of the Fund. The Fund is the first
money market fund to offer a portfolio composed entirely of
investments that meet ESG criteria at the time of purchase.
“We’re proud to apply State Street Global Advisors’ longstanding
ESG commitment to the launch of this fund, which provides the first
fully ESG-focused money market fund option by incorporating
sustainable investing within a cash strategy,” said Pia McCusker,
global head of Cash Management at State Street Global Advisors.
The Fund uses R-FactorTM, State Street Global Advisors’ new ESG
scoring system that draws on multiple data sources and leverages
widely accepted and transparent materiality frameworks to generate
a unique ESG score for issuers. In particular, R- FactorTM
leverages the Sustainability Account Standards Board’s (SASB) and
country-specific corporate governance frameworks and provides
transparency into how and what State Street Global Advisors
considers to be financially material ESG factors.
The Fund invests in prime money market instruments that meet
State Street Global Advisors’ ESG criteria. The portfolio
construction process is a multi-step method involving fundamental
risk budget allocation, optimization, and ESG assessment. The Fund,
which is domiciled in the United States and registered under the
Investment Company Act of 1940 (the “Act”), will have a floating
net asset value and will be managed and operated to comply with
Rule 2a-7 of the Act.
“As appetites for ESG investment opportunities continue to grow,
institutional investors need options across all asset classes.
There’s currently an industry-wide lack of ESG data that is
financially material, consistently reported, and comparable across
firms; using the R-FactorTM scoring system allows us to address
this critical issue by incorporating State Street Global Advisors’
expertise,” said McCusker. “This is only the beginning for the
application of R-FactorTM as we explore further ESG-related
opportunities at the institutional level.”
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 $2.80 trillion*
under our care.
* This figure is presented as of March 31, 2019 and includes
approximately $33 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:
Investing involves risk, including the risk of loss of
principal.
Concentrated investments in a particular sector or industry 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.
The Fund is a money market fund, pursuant to Rule 2a-7 under the
Investment Company Act of 1940, as amended. The net asset value
("NAV") of the Fund's shares is expected to "float," fluctuating
with changes in the values of the Fund's portfolio securities. The
Fund typically accepts purchase and redemption orders multiple
times per day, and calculates its NAV at each such time. Please see
the Fund's Prospectus www.ssga.com/cash for additional
information.
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. The SSGA Funds pay
State Street Bank and Trust Company for its services as custodian,
transfer agent and shareholder servicing agent and pay SSGA Funds
Management, Inc. for investment advisory and administration
services.
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
1-877.521.4083 or download a prospectus now from www.ssga.com/cash,
talk to your financial advisor. Read it carefully before
investing.
2620245.1.1.AM.RTL
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 SSGA’s express written consent.
© 2019 State Street Corporation - All Rights Reserved
Expiration Date: 6/30/2020
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190702005126/en/
Olivia Offner +1 617 662 0198 ooffner@statestreet.com
State Street (NYSE:STT)
Historical Stock Chart
From Mar 2024 to Apr 2024
State Street (NYSE:STT)
Historical Stock Chart
From Apr 2023 to Apr 2024