BOSTON--(BUSINESS WIRE)--State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE:STT), announced today that the SPDR DoubleLine Short Duration Total Return Tactical ETF (Ticker: STOT) and SPDR DoubleLine Emerging Markets Fixed Income ETF (EMTL) began trading on the Bats Global Markets. Developed by SSGA and DoubleLine Capital, the new ETFs build on the success of the SPDR DoubleLine Total Return Tactical ETF (TOTL), the fastest-growing ETF launched in 20151.
“Our clients have been asking us for solutions to help them navigate ongoing bond market uncertainty,” said James Ross, executive vice president and global head of SPDR Exchange Traded Funds at SSGA. “We’re pleased to be expanding our relationship with DoubleLine to seek to help clients address this challenge. These additions to the SPDR line-up provide investors with new actively managed fixed income ETFs that may be able to help strengthen and complement core bond holdings.”
The SPDR DoubleLine Short Duration Total Return Tactical ETF (STOT) seeks to maximize current income with a dollar- weighted average effective duration between one and three years. STOT is managed by Jeffrey Gundlach, chief executive officer and chief investment officer of DoubleLine Capital, Philip Barach, DoubleLine president and Jeffrey Sherman. The fund seeks to maximize total return over a full market cycle through active sector and security selection across a broad range of fixed income securities that could include, among others, securities issued or guaranteed by the US government, foreign and domestic corporate bonds, emerging market bonds and agency and non-agency mortgage backed securities. STOT has a gross expense ratio of 0.50 percent2 and a net expense ratio of 0.45 percent3.
The SPDR DoubleLine Emerging Markets Fixed Income ETF (EMTL) seeks to provide high total return from current income and capital appreciation. EMTL is managed by Luz Padilla, director of DoubleLine’s International Markets Fixed Income Team, Mark Christensen and Su Fei Koo. The fund seeks to maintain a weighted average effective duration between two and eight years through active security selection that combines bottom-up research with sovereign macro overlays.
EMTL seeks to offer actively managed exposure to fixed income instruments from emerging market sovereign and corporate issuers. The SPDR DoubleLine Emerging Markets Fixed Income ETF has a gross expense ratio of 0.75 percent4 and a net ratio of 0.65 percent5.
In February 2015, State Street Global Advisors and DoubleLine Capital launched the SPDR DoubleLine Total Return Tactical ETF (TOTL), which offered access to DoubleLine’s active investment management. Attracting over $1.7 billion during its first ten months, TOTL was the fastest-growing ETF launched in all of 2015. Net assets under management in the SPDR DoubleLine Total Return Tactical ETF totaled over $2.2 billion as of March 31, 2016.6
“The pioneer of exchange-traded funds was the obvious choice when we partnered with State Street to launch the first DoubleLine-managed intermediate-term bond ETF,” Mr. Gundlach said. “With TOTL having recently marked its first anniversary, now is an appropriate time for our two firms to make DoubleLine’s low duration and emerging markets expertise available to ETF investors.”
About DoubleLine Capital
DoubleLine Capital LP, a registered investment adviser under the Investment Advisers Act of 1940, manages $95 billion in assets invested in fixed income, equities, commodities and asset-allocation strategies. DoubleLine-managed investment vehicles include open-end mutual fund, closed-end fund, exchange-traded fund, hedge fund, variable annuity, UCITS and separate account. DoubleLine’s offices in Los Angeles, CA can be reached by telephone at (213) 633-8200 or by e-mail at info@doubleline.com. Media can reach DoubleLine by e-mail at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
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 Corporation. The funds provide investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as an industry pioneer, State Street created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY) and has remained on the forefront of responsible innovation, as evidenced by 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
For nearly four decades, State Street Global Advisors has been committed to helping financial professionals and those who rely on them achieve their investment objectives. We partner with institutions and financial professionals to help them reach their goals through a rigorous, research-driven process spanning both active and index disciplines. We take pride in working closely with our clients to develop precise investment strategies, including our pioneering family of SPDR ETFs. With trillions* in assets under management, our scale and global footprint provide access to markets and asset classes, and allow us to deliver expert insights and investment solutions.
State Street Global Advisors is the investment management arm of State Street Corporation.
*Assets under management were $2.24 trillion as of December 31, 2015. AUM reflects approx. $22.0 billion (as of December 31, 2015) with respect to which State Street Global Markets, LLC (SSGM) serves as marketing agent; SSGM and State Street Global Advisors are affiliated.
Important Information
Actively managed funds do not seek to replicate the performance of a specified index. An actively managed fund may underperform its benchmark. 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.
Bank Loans are subject to credit, interest rate, income and prepayment risks. The fund may invest in secured and unsecured participations in bank loans. Participation loans are loans made by multiple lenders to a single borrower, e.g., several banks participate in one large loan with one of the banks taking the role of the lead bank. The lead bank recruits other banks to participate and share in the risks and profits. There is also the risk that the collateral may be difficult to liquidate or that a majority of the collateral may be illiquid. In participation the fund assumes the credit risk of the lender selling the participation in addition to the credit risk of the borrower.
Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall), issuer default risk, issuer credit risk, liquidity risk and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss. High yield securities may be subject to greater risks (including the risk of default) than other fixed income securities.
Derivatives are based on one or more underlying securities, financial benchmarks, indices, or other obligations or measures of value; additional risks with derivatives trading (e.g., market, credit, counterparty and illiquidity) are possibly greater than the risks associated with investing directly in the underlying instruments. Derivatives can have a leveraging effect and increase fund volatility that can have a large impact on Fund performance.
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.
Floating rate bank loans are often lower-quality debt securities and may involve greater risk of price changes and greater risk of default on interest and principal payments. The market for floating rate bank loans is largely unregulated and these assets usually do not trade on an organized exchange. As a result, floating rate bank loans can be relatively illiquid and hard to value.
Foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations, all of which may be magnified in emerging markets.
Sovereign bonds are issued by governments and government agencies and instrumentalities, which may be unable or unwilling to repay principal or interest on debt obligations in times of economic uncertainty.
Investments in asset backed and mortgage backed securities are subject to prepayment risk which can limit the potential for gain during a declining interest rate environment and increases the potential for loss in a rising interest rate environment.
Standard & Poor’s, S&P and SPDR are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation’s financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties make any representation 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.
DoubleLine® is a registered trademark of DoubleLine Capital LP.
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. State Street Global Markets, LLC is the distributor for all registered products on behalf of the advisor. SSGA Funds Management has retained DoubleLine Capital LP as the subadvisor. DoubleLine Capital LP and State Street Global Markets, LLC are not affiliated.
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.
Not FDIC Insured – No Bank Guarantee – May Lose Value
CORP-1903
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Expiration Date: 04-30-2018
1 Source: Bloomberg as of 12.31.15
2 The
gross expense ratio is the fund’s total annual operating expense ratio.
It is gross of any fee waivers or expense reimbursements. It can be
found in the fund’s most recent prospectus.
3 The
Adviser has contractually agreed to waive its advisory fee and/or
reimburse certain expenses, until October 31, 2017, so that the net
annual fund operating expenses of the Fund will be limited to 0.45% of
the Fund’s average daily net assets before application of any
extraordinary expenses or acquired fund fees and expenses. The
contractual fee waiver and/or reimbursement does not provide for the
recoupment by the Adviser of any fees the Adviser previously waived. The
Adviser may continue the waiver and/or reimbursement from year to year,
but there is no guarantee that the Adviser will do so and after October
31, 2017, the waiver and/or reimbursement may be cancelled or modified
at any time. This waiver and/or reimbursement may not be terminated
during the relevant period except with the approval of the SSGA Active
Trust’s Board of Trustees.
4 The gross expense ratio is
the fund’s total annual operating expense ratio. It is gross of any fee
waivers or expense reimbursements. It can be found in the fund’s most
recent prospectus.
5 The Adviser has contractually
agreed to waive its advisory fee and/or reimburse certain expenses,
until October 31, 2017, so that the net annual fund operating expenses
of the Fund will be limited to 0.65% of the Fund’s average daily net
assets before application of any extraordinary expenses or acquired fund
fees and expenses. The contractual fee waiver and/or reimbursement does
not provide for the recoupment by the Adviser of any fees the Adviser
previously waived. The Adviser may continue the waiver and/or
reimbursement from year to year, but there is no guarantee that the
Adviser will do so and after October 31, 2017, the waiver and/or
reimbursement may be cancelled or modified at any time. This waiver
and/or reimbursement may not be terminated during the relevant period
except with the approval of the SSGA Active Trust’s Board of Trustees.
6
Source Bloomberg
