BOSTON--(BUSINESS WIRE)--
State Street Global Advisors (SSgA), the asset management business of
State Street Corporation (NYSE: STT), today announced the launch of the
SSgA S&P MLP Index Strategy. This passive strategy offers institutional
investors the opportunity to gain exposure to master limited
partnerships (MLPs) and other related securities of companies in the
energy infrastructure sector, including those typically engaged in the
transportation, storage, refining, marketing, exploration, production,
and processing of minerals and natural resources.
SSgA’s S&P MLP Index strategy is managed using a replication methodology
to proportionally invest in the securities comprising the S&P MLP Index,
and is currently implemented as separately managed accounts. These
securities include both MLPs and publicly traded limited liability
companies (LLCs), characterized by favorable tax structures and steady
distribution payments. The total annualized returns and distribution
rate of the S&P MLP Index as of June 30, 2012 are 7.72 percent (1-year),
26.88 percent (3-year) and 9.62 percent (5-year) with a distribution
rate of 5.99 percent.
“The current growth in the energy infrastructure industry offers
opportunities to investors seeking to diversify their portfolio while
generating stable revenue streams,” said Lynn Blake, senior managing
director of SSgA and CIO of Global Equity Beta Solutions. “With SSgA’s
S&P MLP Index strategy, clients have access to an alternative asset
class with high historical returns and distribution rates.”
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.
Although investments in MLPs and related securities may provide tax
advantages (including potentially the absence of entity-level taxation),
interests in MLPs and related securities are complex and involve risks
that differ from investments in common stocks and may have unique or
adverse tax or other consequences on investors in the SSgA S&P MLP Index
Strategy (the “Strategy”); potential investors should consult their tax,
legal, financial or other advisor before investing in the Strategy. The
Strategy will likely generate unrelated business taxable income, and may
be inappropriate for some investors.
This document provides summary information regarding the Strategy. This
document should be read in conjunction with the Strategy's Disclosure
Document, which is available from SSgA. The Strategy Disclosure Document
contains important information about the Strategy, including a
description of a number of risks.
Risk associated with equity investing include stock values which may
fluctuate in response to the activities of individual companies and
general market and economic conditions.
Derivative investments may involve risks such as potential illiquidity
of the markets and additional risk of loss of principal.
There are a number of risks associated with futures investing including
but not limited to counterparty credit risk, currency risk, derivatives
risk, foreign issuer exposure risk, sector concentration risk,
leveraging and liquidity risks.
CORP-0570
State Street Corporation
Alicia Curran Sweeney, +1 617-664-3001
www.statestreet.com
Source: State Street Corporation