Mutual Fund Summary Prospectus (497k)
October 31 2013 - 5:03PM
Edgar (US Regulatory)
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SPDR
®
Nuveen Barclays California
Municipal Bond ETF
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CXA
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(NYSE Ticker)
SUMMARY PROSPECTUS - OCTOBER 31, 2013
Before you invest in the SPDR Nuveen Barclays
California Municipal Bond ETF (the Fund), you may want to review the Funds prospectus and statement of additional information, which contain more information about the Fund and the risks of investing in the Fund. The Funds
prospectus and statement of additional information dated October 31, 2013, are incorporated by reference into this summary prospectus. You can find the Funds prospectus and statement of additional information, as well as other information
about the Fund, online at https://www.spdrs.com/product/fund.seam?ticker=CXA. You may also obtain this information at no charge by calling (866) 787-2257 or by sending an e-mail request to Fund_inquiry@ssga.com.
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INVESTMENT OBJECTIVE
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The SPDR Nuveen Barclays California Municipal Bond ETF (the Fund) seeks to provide investment results that, before fees and
expenses, correspond generally to the price and yield performance of an index that tracks the California municipal bond market and provides income that is exempt from federal and California state income taxes.
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FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund (Shares). This table and the example below do not reflect brokerage commissions you may
pay on purchases and sales of the Funds Shares.
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ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the value of your
investment):
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MANAGEMENT FEES
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0.20%
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DISTRIBUTION AND SERVICE (12b-1) FEES*
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0.00%
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OTHER EXPENSES
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0.00%
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TOTAL ANNUAL FUND OPERATING EXPENSES
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0.20%
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*
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The Fund has adopted a Distribution and Service (12b-1) Plan pursuant to which payments of up to 0.25% of average daily net assets may be made, however, the Board
has determined that no such payments will be made through at least October 31, 2014.
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EXAMPLE:
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes
that you invest $10,000 in the Fund for the time periods indicated, and then sell all of your Shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Funds operating expenses
remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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YEAR 1
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YEAR 3
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YEAR 5
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YEAR 10
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$20
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$64
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$113
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$255
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PORTFOLIO TURNOVER:
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund Shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year,
the Funds portfolio turnover rate was 40% of the average value of its portfolio.
THE FUNDS PRINCIPAL INVESTMENT STRATEGY
In seeking to track the performance of the Barclays Managed Money Municipal California Index (the Index), the Fund
employs a sampling strategy, which means that the Fund is not required to purchase all of the securities represented in
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the Index. Instead, the Fund may purchase a subset of the securities in the Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the
Index. The quantity of holdings in the Fund will be based on a number of factors, including asset size of the Fund. Based on its analysis of these factors, Nuveen Asset Management, LLC (Nuveen Asset Management or the
Sub-Adviser), the investment sub-adviser to the Fund, may invest the Funds assets in a subset of securities in the Index or may invest the Funds assets in substantially all of the securities represented in the Index in
approximately the same proportions as the Index.
Under normal market conditions, the Fund generally invests substantially all, but at
least 80%, of its total assets in the securities comprising the Index or in securities that the Sub-Adviser determines have economic characteristics that are substantially identical to the economic characteristics of the securities that comprise the
Index. The Fund will provide shareholders with at least 60 days notice prior to any material change in this 80% investment policy. Additionally, the Fund intends to invest, under normal circumstances, 80% of its assets in investments the
income of which is exempt from both Federal income tax and California income tax. In addition, the Fund may invest in debt securities that are not included in the Index, cash and cash equivalents or money market instruments, such as repurchase
agreements and money market funds (including money market funds advised by SSgA Funds Management, Inc. (SSgA FM or the Adviser), the investment adviser to the Fund).
The Index is designed to track the publicly traded California municipal bonds that cover the U.S. dollar denominated California tax exempt bond market, including state and local general
obligation bonds, revenue bonds, pre-refunded bonds and insured bonds. A general obligation bond is secured by the full faith and credit of its issuer. A revenue bond is payable from a specific source of revenue. A pre-refunded bond is a revenue
bond that the issuer has allocated funds to fully retire. An insured bond is protected from issuer default or rating downgrade by an insurance company. The Index also includes municipal lease obligations, which are securities issued by state and
local governments and authorities to finance the acquisition of equipment and facilities. They may take the form of a lease, an installment purchase contract, a conditional sales contract, or a participation interest in a lease or contract. The
Index is a rules-based, market-value weighted index. All bonds in the Index must be rated Aa3/AA- or higher by at least two of the following statistical ratings agencies: Moodys Investors Service, Inc., Standard & Poors, and
Fitch Inc. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the agencies rates the security, the rating must be at least Aa3/AA-. Each Index security must be issued by
authorities in California, have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The bonds must be fixed rate and have a nominal maturity of one or more years. No issuer may
constitute more than 10% of the Index. Bonds subject to alternative minimum tax, hospital bonds, housing bonds, tobacco bonds, and airline bonds, along with remarketed issues, taxable municipal bonds, floaters, and derivatives are all excluded from
the Index. As of September 30, 2013, there were approximately 1,908 securities in the Index and the modified adjusted duration of securities in the Index was approximately 9.49 years.
The Index is sponsored by Barclays, Inc. (the Index Provider) which is not affiliated with the Fund, the Adviser or the Sub-Adviser. The
Index Provider determines the composition of the Index, relative weightings of the securities in the Index and publishes information regarding the market value of the Index.
PRINCIPAL RISKS OF INVESTING IN THE FUND
As with all investments, there are
certain risks of investing in the Fund, and you could lose money on an investment in the Fund.
PASSIVE STRATEGY/INDEX RISK:
The Fund is managed with a passive investment strategy, attempting to track the
performance of an unmanaged index of securities. This differs from an actively managed fund, which typically seeks to outperform a benchmark index. As a result, the Fund may hold constituent securities of the Index regardless of the current or
projected performance of a specific security or a particular industry or market sector. Maintaining investments in securities regardless of market conditions or the performance of individual securities could cause the Funds return to be lower
than if the Fund employed an active strategy.
INDEX
TRACKING RISK:
While the Sub-Adviser seeks to track the performance of the Index as closely as possible (
i.e.,
achieve a high degree of correlation with the
Index), the Funds return may not match or achieve a high degree of correlation with the return of the Index due to operating expenses, transaction costs, cash flows, regulatory requirements and operational inefficiencies. For example, the
Sub-Adviser anticipates that it may take several business days for additions and deletions to the Index to be reflected in the portfolio composition of the Fund.
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DEBT SECURITIES INVESTING RISK:
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 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.
CALIFORNIA STATE-SPECIFIC RISK:
Because the Fund
concentrates its investments in California municipal securities (
i.e.,
holds 25% or more of its total assets), the Fund will have greater exposure to negative political, economic and statutory factors within the State of California than a
fund that invests in a broader base of securities. Unfavorable developments in any economic sector may have a substantial impact on the overall California municipal market. Provisions of the California Constitution and state statutes that limit the
taxing and spending authority of California governmental entities may impair the ability of California issuers to pay principal and/or interest on their obligations. While Californias economy is broad, it does have major concentrations in high
technology, aerospace and defense-related manufacturing, trade, entertainment, real estate and financial services, and may be sensitive to economic problems affecting those industries. Future California political and economic developments,
constitutional amendments, legislative measures, executive orders, administrative regulations, litigation and voter initiatives could have an adverse effect on the debt obligations of California issuers. As of February 2013, California had one of
the lowest credit ratings of any state in the country.
TAX RISK:
There is no guarantee that the Funds income will be exempt from federal or state income taxes. Events occurring after the date of issuance of a municipal bond or after the
Funds acquisition of a municipal bond may result in a determination that interest on that bond is includible in gross income for federal income tax purposes retroactively to its date of issuance. Such a determination may cause a portion of
prior distributions by the Fund to its shareholders to be taxable to those shareholders in the year of receipt. Federal or state changes in income or alternative minimum tax rates or in the tax treatment of municipal bonds may make municipal bonds
less attractive as investments and cause them to decline in value.
POLITICAL RISK:
A significant restructuring of federal income tax rates or even serious discussion on the topic in
Congress could cause municipal bond prices to fall. The demand for municipal securities is strongly influenced by the value of tax-exempt income to investors. Lower income tax rates could reduce the advantage of owning municipals.
NON-DIVERSIFICATION RISK:
The Fund is non-diversified and may invest a larger percentage of its assets in securities of a few issuers or a single issuer than that of a diversified fund. As a result, the
Funds performance may be disproportionately impacted by the performance of relatively few securities.
FUND PERFORMANCE
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The following bar chart and table provide an indication of the risks of investing in the Fund by showing changes in the Funds performance from year to year and by
showing how the Funds average annual returns for certain time periods compare with the average annual returns of the Index. The Funds past performance (before and after taxes) is not necessarily an indication of how the Fund will perform
in the future. Updated performance information is available online at
http://www.spdrs.com
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ANNUAL TOTAL RETURN
(years ended 12/31)*
Highest
Quarterly Return: 10.08% (Q3 2009)
Lowest Quarterly Return: -7.87% (Q4 2010)
* As of September 30,
2013, the Funds Calendar Year-To-Date return was -3.91%.
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AVERAGE ANNUAL TOTAL RETURNS
(for periods ending 12/31/12)
The after-tax returns presented in the table below are calculated using highest historical
individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend on your specific tax situation and may differ from those shown below. After-tax returns are not relevant
to investors who hold Shares of the Fund through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. The returns after taxes can exceed the return before taxes due to an assumed tax benefit for a shareholder from
realizing a capital loss on a sale of Fund Shares.
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ONE YEAR
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FIVE YEARS
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SINCE INCEPTION
(10/10/07)
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RETURN BEFORE TAXES
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9.27%
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6.48%
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6.45%
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RETURN AFTER TAXES ON DISTRIBUTIONS
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8.95%
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6.38%
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6.36%
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RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES
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7.72%
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6.12%
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6.11%
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BARCLAYS MANAGED MONEY MUNICIPAL CALIFORNIA INDEX
(reflects no deductions for fees, expenses or taxes)
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8.75%
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6.43%
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6.49%
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PORTFOLIO MANAGEMENT
INVESTMENT ADVISER
SSgA FM serves as the investment adviser to the
Fund. Nuveen Asset Management serves as sub-adviser to the Fund, subject to supervision by the Adviser and the Board of Trustees. To the extent that a reference in this Prospectus refers to the Adviser, such reference should also be
read to refer to Nuveen Asset Management with respect to the Fund where the context requires.
PORTFOLIO MANAGERS
The professionals primarily responsible for the day-to-day management of the Fund are Timothy T. Ryan and Steven M. Hlavin.
TIMOTHY T. RYAN,
CFA,
is a Senior Vice President and Portfolio Manager at Nuveen Asset Management. Mr. Ryan joined an affiliate of Nuveen Asset Management in 2010.
STEVEN M. HLAVIN
is
a Vice President and Assistant Portfolio Manager at Nuveen Asset Management. Mr. Hlavin joined an affiliate of Nuveen Asset Management in 2003.
PURCHASE AND SALE INFORMATION
The Fund will issue (or redeem) Shares to
certain institutional investors (typically market makers or other broker-dealers) only in large blocks of 100,000 Shares known as Creation Units. Creation Unit transactions are typically conducted in exchange for the deposit or
delivery of in-kind securities and/or cash constituting a substantial replication, or a representation, of the securities included in the Funds benchmark Index.
Individual Shares of the Fund may only be purchased and sold on the NYSE Arca, Inc., other national
securities exchanges, electronic crossing networks and other alternative trading systems through your broker-dealer at market prices. Because Fund Shares trade at market prices rather than at net asset value (NAV), Shares may trade at a
price greater than NAV (premium) or less than NAV (discount).
TAX INFORMATION
The Fund intends to pay income that is exempt from regular federal income tax and exempt from California state income tax for California residents,
but which may be subject to the federal alternative minimum tax (AMT). To the extent the Fund invests in securities that do not produce income exempt from regular federal income tax and/or the AMT, a portion of the Funds
distributions may be subject to such taxes. Income from municipal securities of states other than the shareholders state of residence generally will not qualify for tax-free treatment for such shareholder with respect to state and local taxes.
CXASUMPRO
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