State Street Global Advisors (SSGA), the asset management arm of State
Street Corporation (NYSE:STT), today announced the SPDR MSCI ACWI Low
Carbon Target ETF (Symbol: LOWC) began trading on the NYSE Arca on
November 26, 2014. Developed in conjunction with the United Nations
Joint Staff Pension Fund (UNJSPF), LOWC is a new vehicle that seeks to
provide access to the potentially long-term growth opportunities of
companies that are carbon efficient while reducing exposure to assets
vulnerable to the transition to a low carbon economy.
“In combining the advantages of low carbon investment exposure with the
benefits of the ETF structure, LOWC offers a powerful value proposition
for investors seeking to reduce their carbon risk exposure while
maintaining the benefits of broad global diversification,” said
Christopher McKnett, head of ESG Investments at State Street Global
Advisors.
“The launch of LOWC is an exciting advance that improves access to the
benefits of low carbon investing for all investors,” said James Ross,
executive vice president and global head of SPDR Exchange Traded Funds.
“We are proud to support the Secretary General and the United Nations
Joint Staff Pension Fund in expanding the reach of low carbon
initiatives.”
The SPDR MSCI ACWI Low Carbon Target ETF seeks to provide investment
results that correspond generally to the total return performance of the
MSCI ACWI Low Carbon Target Index, which is designed to address two
dimensions of carbon exposure – carbon emissions and fossil fuel
reserves expressed as potential emissions. The Index, which is a subset
of the MSCI ACWI Index, overweights companies with low carbon emissions
relative to sales and those with low fossil fuel reserves relative to
market capitalization and seeks to achieve a target level of tracking
relative to its parent index (the MSCI ACWI Index) while minimizing the
carbon exposure. The SPDR MSCI ACWI Low Carbon Target ETF’s gross
expense ratio is 0.30 percent1. SSgA has contractually agreed
to waive its advisory fee and reimburse certain expenses until January
31, 2017, making the net expense ratio 0.20 percent2.
“We support the UNJSPF’s low carbon initiatives and are pleased that
SSGA has selected the MSCI ACWI Low Carbon Target Index as a benchmark
for their Low Carbon ETF,” said Remy Briand, Managing Director and Head
of Equity Research at MSCI. “The MSCI ACWI Low Carbon Target Index
combines MSCI’s quality index construction with our in-house
environmental, social and governance (ESG) team’s unique data on carbon
emissions and reserves.”
“At the UN Secretary-General’s Climate Summit on 23 September, world
leaders in government, business, finance and civil society were called
upon to initiate transformative action to reduce emissions and build
resilience to the adverse impacts of climate change. The United Nations
Joint Staff Pension Fund welcomes the creation of a new lower carbon
index and related ETFs as a responsible approach to environmentally
sustainable investing and a positive response to the Secretary-General’s
call for action,” said Carol Boykin, CFA, Representative of the
Secretary-General for the investment of the assets of the United Nations
Joint Staff Pension Fund.
ESG investment strategies are one of the fastest growing segments of the
asset management industry amid strong demand from institutional
investors. According to a recent report from US SIF – the Forum for
Sustainable and Responsible Investment, total US-domiciled assets under
management in sustainable, responsible and impact investment strategies
has grown 76 percent from $3.74 trillion in 2012 to $6.57 trillion at
the start of 2014, with environmental factors incorporated in nearly $3
trillion of assets under management3.
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
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
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.
1 The gross expense ratio is the fund’s total annual operating expenses
ratio. It is gross of any fee waivers or expense reimbursements. It can
be found in the fund’s most recent prospectus.
2 The Adviser has contractually agreed to waive its advisory fee and
reimburse certain expenses, until January 31, 2017, so that the Net
annual Fund operating expenses of the Fund will be limited to 0.20% of
the Fund's average daily net assets before application of any fees and
expenses not paid by the Adviser under the Investment Advisory
Agreement. Such fees and expenses paid by the Adviser are limited to
certain direct operating expenses of the Fund and, therefore, do not
include the Fund's acquired fund fees and expenses, if any. The
contractual fee waiver does not provide for the recoupment by the
Adviser of any fees the Adviser previously waived. The Adviser may
continue the waiver from year to year, but there is no guarantee that
the Adviser will do so and after January 31, 2017, the waiver may be
cancelled or modified at any time.
3 Source: US SIF Foundation Report on Sustainable, Responsible and
Impact Investing Trends 2014
Investing involves risk including the risk of loss of principal.
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. All material has been obtained from sources
believed to be reliable. There is no representation or warranty as to
the accuracy of the information and State Street shall have no liability
for decisions based on such information.
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.
Frequent trading of ETF’s could significantly increase commissions and
other costs such that they may offset any savings from low fees or costs.
Passively managed funds invest by sampling the index, holding a range of
securities that, in the aggregate, approximates the full Index in terms
of key risk factors and other characteristics. This may cause the fund
to experience tracking errors relative to performance of the index.
The funds or securities referred to herein are not sponsored, endorsed,
or promoted by MSCI, and MSCI bears no liability with respect to any
such funds or securities or any index on which such funds or securities
are based.
The Prospectus contains a more detailed description of the limited
relationship MSCI has with SSgA Funds Management, Inc and any related
funds.
"SPDR" is a registered trademark of Standard & Poor’s Financial Services
LLC ("S&P?") and has been licensed for use by State Street Corporation.
No financial product offered by State Street Corporation or its
affiliates is sponsored, endorsed, sold or promoted by S&P or its
Affiliates, and S&P and its affiliates make no representation, warranty
or condition regarding the advisability of buying, selling or holding
units/shares in such products.
Further limitations and important information that could affect
investor’s rights are described in the prospectus for the applicable
product.
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.
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.
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