New ETF Invests in High Yield Corporate Bonds, Senior Loans
and CLOs, Seeking to Provide Risk-Adjusted Total Return and High
Current Income
State Street Global Advisors, the asset management business of
State Street Corporation (NYSE: STT), today announced the launch of
the SPDR® Blackstone High Income ETF (HYBL). Sub-advised by
Blackstone Credit (“Blackstone”), HYBL is actively managed and
invests in US dollar-denominated high yield debt securities seeking
to provide investors with risk-adjusted returns and high current
income. Blackstone is also sub-adviser of the SPDR® Blackstone
Senior Loan ETF (SRLN).
“We’re excited to expand on our successful partnership with
Blackstone to provide investors with a new approach to income
investing,” said Sue Thompson, head of SPDR Americas Distribution
at State Street Global Advisors. “As investors search for higher
yields, demand for senior loans and high yield corporate bonds is
on the rise. HYBL is designed to meet this demand while providing
access to Blackstone’s deep expertise across these segments of the
credit market.”
As sub-adviser of HYBL, Blackstone will actively manage a
portfolio of high yield corporate bonds, senior loans, and debt
tranches of US CLOs using a top-down asset allocation approach
coupled with bottom-up security selection that seeks to outperform
a composite benchmark comprising 50% high yield bonds and 50%
senior loans with less volatility than the individual benchmark
components over a full market cycle.
The top-down asset allocation approach evaluates macroeconomic,
technical, fundamental, and relative value factors to determine the
allocation among the asset classes. The bottom-up security
selection process relies on fundamental credit research to
determine security selection within each asset class, while
utilizing a systematic process in high yield bonds to seek to
capture credit risk premium by identifying and exploiting potential
mispricing at the individual security level.
Dan McMullen, Head of North American Liquid Portfolio Management
for Blackstone said, “We see a compelling opportunity to generate
income in high yield corporate bonds, senior loans and CLO debt
securities through our active management approach. HYBL will build
on the proven track record we have established through SRLN with
State Street and benefit from our deep expertise in credit
investing.”
In April 2013, State Street Global Advisors and Blackstone
launched the SPDR Blackstone Senior Loan ETF (SRLN), the first
actively managed ETF to provide exposure to senior loans. With over
$6.7 billion of inflows last year, SRLN was the fastest growing
US-listed active ETF in all of 2021. Net assets under management in
SRLN totaled over $8.9 billion as of December 31, 2021.1
For more information on the SPDR Blackstone High Income ETF,
visit www.ssga.com/etfs.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of
international and domestic asset classes. SPDR ETFs are sponsored
by affiliates of State Street Global Advisors. The funds provide
investors with the flexibility to select investments that are
aligned to their investment strategy. For more information, visit
www.ssga.com/etfs
About Blackstone
Blackstone is the world’s largest alternative asset manager. We
seek to create positive economic impact and long-term value for our
investors, the companies we invest in, and the communities in which
we work. We do this by using extraordinary people and flexible
capital to help companies solve problems. Our $881 billion in
assets under management include investment vehicles focused on
private equity, real estate, public debt and equity, life sciences,
growth equity, opportunistic, non-investment grade credit, real
assets and secondary funds, all on a global basis.2 Further
information is available at www.blackstone.com.
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 fourth-largest asset manager* with US $4.14 trillion† under
our care.
*Pensions & Investments Research Center, as of 12/31/20.
†This figure is presented as of December 31, 2021 and includes
approximately $61.43 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.
1 Bloomberg Finance L.P. data as of December 31, 2021. 2
Blackstone as of December 31, 2021.
Important Risk Disclosures
Investing involves risk of including the risk of loss of
principal.
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.
Equity securities may fluctuate in value and can decline
significantly in response to the activities of individual companies
and general market and economic conditions.
The value of the debt securities may increase or decrease
as a result of the following: market fluctuations, increases in
interest rates, inability of issuers to repay principal and
interest or illiquidity in the debt securities markets; the risk of
low rates of return due to reinvestment of securities during
periods of falling interest rates or repayment by issuers with
higher coupon or interest rates; and/or the risk of low income due
to falling interest rates. To the extent that interest rates rise,
certain underlying obligations may be paid off substantially slower
than originally anticipated and the value of those securities may
fall sharply. This may result in a reduction in income from debt
securities income.
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. Securities with floating or variable interest
rates may decline in value if their coupon rates do not keep pace
with comparable market interest rates. Narrowly focused investments
typically exhibit higher volatility and are subject to greater
geographic or asset class risk. The fund is subject to credit risk,
which refers to the possibility that the debt issuers will not be
able to make principal.
The fund is actively managed. The sub-adviser’s judgments
about the attractiveness, relative value, or potential appreciation
of a particular sector, security, commodity or investment strategy
may prove to be incorrect, and may cause the fund to incur losses.
There can be no assurance that the sub-adviser’s investment
techniques and decisions will produce the desired results.
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.
While the shares of ETFs are tradable on secondary markets, they
may not readily trade in all market conditions and may trade at
significant discounts in periods of market stress.
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.
The trademarks and service marks referenced herein are the
property of their respective owners. Third party data providers
make no warranties or representations of any kind relating to the
accuracy, completeness or timeliness of the data and have no
liability for damages of any kind relating to the use of such
data.
The views expressed in this material are the views of SPDR
through the period ended February 17, 2022 and are subject to
change based on market and other conditions. This document contains
certain statements that may be deemed forward-looking statements.
Please note that any such statements are not guarantees of any
future performance and actual results or developments may differ
materially from those projected.
All information is from SSGA unless otherwise noted and has been
obtained from sources believed to be reliable, but its accuracy is
not guaranteed. There is no representation or warranty as to the
current accuracy, reliability or completeness of, nor liability
for, decisions based on such information and it should not be
relied on as such.
The information provided does not constitute investment advice
and it should not be relied on as such. It should not be considered
a solicitation to buy or an offer to sell a security. It does not
take into account any investor's particular investment objectives,
strategies, tax status or investment horizon. You should consult
your tax and financial advisor.
Intellectual Property Information: Standard &
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regarding the advisability of investing in such product(s) nor do
they have any liability in relation thereto, including for any
errors, omissions, or interruptions of any index.
State Street Global Advisors Funds Distributors, LLC is the
distributor for some registered products on behalf of the advisor.
SSGA Funds Management has retained Blackstone Liquid Credit
Strategies LLC as the sub-advisor. State Street Global Advisors
Funds Distributors, LLC is not affiliated with Blackstone Liquid
Credit Strategies LLC.
Before investing, consider the fund’s 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.ssga.com. Read it carefully.
Not FDIC Insured - No Bank Guarantee - May Lose Value
State Street Global Advisors Fund Distributors, LLC, member
FINRA, SIPC
© 2022 State Street Corporation. All Rights Reserved. State
Street Global Advisors Funds Distributors, LLC, One Iron Street,
Boston, MA 02210
4225557.1.1.AM.RTL Exp. Date: 02/28/2023
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Deborah Heindel +1 617 662 9927 DHEINDEL@StateStreet.com
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