Offers Clients Potential Diversification Opportunities for Fixed Income
State Street Global Advisors (SSgA)*, the asset management arm of State
Street Corporation (NYSE:STT), today announced that the SPDR Blackstone
/ GSO Senior Loan exchange traded fund (ETF) (Symbol:SRLN) began trading
on the NYSE Arca on April 4, 2013. Developed by SSgA and GSO Capital
Partners LP, the global credit business of The Blackstone Group L.P.
(NYSE:BX), one of the world's largest alternative asset managers, the
SPDR Blackstone / GSO Senior Loan ETF is the first actively managed ETF
to provide exposure to senior loans.
"Given the high turnover of senior loans and the critical importance of
credit selection, we believe an active strategy provides a key advantage
to investors who want access to this corner of the market. Blackstone /
GSO's rigorous approach and disciplined credit analysis made them an
obvious choice to help us bring this product to clients and we are
excited about the partnership," said James Ross, senior managing
director and global head of SPDR Exchange Traded Funds at SSgA. "The
SPDR Blackstone / GSO Senior Loan ETF is the latest example of our
commitment to developing ETFs that democratize access to institutional
asset classes, strategies and expertise."
The ETF is designed to seek high current income, preserve capital, and
outperform the Markit iBoxx USD Liquid Leveraged Loan Index and the
S&P/LSTA U.S. Leveraged Loan 100 Index. Usually rated below investment
grade, it is typical in the loan market to expect that 30 to 35 percent
of loans will fall out of the index in any given year, so the ability to
anticipate and react quickly to changes in the market through an active
strategy is potentially advantageous.
"SSgA is a pioneer in the ETF market and we are pleased to join them in
bringing the first actively managed senior loan ETF to investors," said
Lee Shaiman, managing director, The Blackstone Group. "Together we bring
significant expertise to the asset class in a transparent and accessible
product for all investors."
Potential Benefits of SRLN
SRLN's expense ratio is .90 percent - significantly lower than the
average expense ratio of senior loan mutual funds (A Shares: 1.11
percent, C Shares: 1.78 percent)
Access to GSO / Blackstone's senior loan portfolio management, a
comprehensive investment process based on thorough due diligence and
judgment and a seasoned team with a combined 20+ years of experience
in leveraged finance
An investment strategy designed to generate higher risk adjusted
returns while seeking to maintain capital preservation
The core advantages of the ETF structure, including transparency,
intraday trading liquidity and no investment minimums
For more information about the SPDR Blackstone / GSO Senior Loan ETF,
SSgA manages more than $340 billion** in SPDR ETF assets worldwide (as
of December 31, 2012) and is one of the largest ETF providers globally.
Blackstone is one of the world's leading investment and advisory firms.
We seek to create positive economic impact and long-term value for our
investors, the companies we invest in, the companies we advise and the
broader global economy. We do this through the commitment of our
extraordinary people and flexible capital. Our alternative asset
management businesses include the management of private equity funds,
real estate funds, hedge fund solutions, credit-oriented funds and
closed-end funds. Blackstone also provides various financial advisory
services, including financial and strategic advisory, restructuring and
reorganization advisory and fund placement services. Further information
is available at www.blackstone.com.
Follow us on Twitter @Blackstone.
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of international
and domestic asset classes. SPDR ETFs are managed by SSgA Funds
Management, Inc., a registered investment adviser and wholly owned
subsidiary of State Street Bank and Trust Company. The funds provide
professional investors with the flexibility to select investments that
are precisely aligned to their investment strategy. Recognized as
industry pioneer, State Street created the first US listed ETF in 1993
(SPDR S&P 500® - Ticker SPY). Since then, we've sustained our place as
an industry innovator through the introduction of many ground-breaking
products, including first-to-market launches with gold, international
real estate, international fixed income and sector ETFs. For more
information, visit www.spdrs.com.
About State Street Global Advisors
State Street Global Advisors (SSgA) is a global leader in asset
management. The firm is relied on by sophisticated investors worldwide
for its disciplined investment process, powerful global investment
platform and access to every major asset class, capitalization range and
style. SSgA is the asset management business of State Street
Corporation, one of the world's leading providers of financial services
to institutional investors.
*SPDR ETFs are managed by SSgA Funds Management, Inc., a registered
investment adviser and wholly owned subsidiary of State Street Bank &
**This AUM includes the assets of the SPDR Gold Trust (approx. $72.2
billion as of December 31, 2012), for which State Street Global Markets,
LLC, an affiliate of State Street Global Advisors, serves as the
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.
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.
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.
Actively managed ETFs do not seek to replicate the performance of a
These investments may have difficulty in liquidating an investment
position without taking a significant discount from current market
value, which can be a significant problem with certain lightly traded
The Fund is actively managed and may underperform its benchmarks. An
investment in the fund is not appropriate for all investors and is not
intended to be a complete investment program. Investing in the fund
involves risks, including the risk that investors may receive little or
no return on the investment or that investors may lose part or even all
of the investment.
Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a
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. ALPS Distributors, Inc., a registered broker-dealer, is
distributor for SPDR shares, MidCap SPDRs and Dow Jones Industrial
Average, all unit investment trusts and Select Sector SPDRs.
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.
Elizabeth Bartlett, +1 617 662 2903
Troy Mayclim, +1 914 686 5599