State Street Global Advisors (SSGA), the asset management
business of State Street Corporation (NYSE:STT), today announced
the expected distribution breakdown of the special dividend
associated with the upcoming modifications to the index
constituents of the Financial Select Sector Index (Financial Sector
Index), and the Financial Select Sector SPDR Fund (XLF).
As announced in June, in order to facilitate an efficient
transition to the reconstituted Financial Sector Index, XLF has
sought to obtain its real estate exposure in shares of The Real
Estate Select Sector SPDR Fund (XLRE) in advance of the Financial
Select Sector Index reconstitution. XLRE seeks to track the Real
Estate Select Sector Index. For a full listing of companies in the
Real Estate Select Sector Index, please click here.
Upon the completion of the changes to the Financial Select
Sector Index, on September 16, XLF will issue a special dividend to
its shareholders. The special dividend will be comprised of shares
of XLRE.
The distribution for the special dividend is 0.139146 shares of
XLRE or $4.44356 per share of XLF as of September 16, 2016. The
dividend distribution will be characterized as both return of
capital and income for tax purposes. As of September 16, 2016, the
approximate percentage of the dividend that will be treated as
return of capital is 74%, and the remaining 26% will be taxed as
ordinary income. The amounts and sources of distributions reported
are estimates and are not being provided for tax reporting
purposes. The actual amounts and sources of the amounts for tax
reporting purposes will depend upon the Fund's investment
experience during the remainder of its fiscal year and may be
subject to changes based on the tax regulations. U.S. Shareholders
will receive a form 1099-DIV in early 2017 that will inform them
how to report distributions for federal income tax purposes.
Important dates for this special dividend are as follows:
Declaration Date: September 16, 2016
Ex-Date: September 19, 2016
Record Date: September 21, 2016
Pay Date: September 22, 2016
Effective on the date of index reconstitution, the Financial
Select Sector Index will include securities of companies from the
following industries: diversified financial services, insurance,
banks, capital markets, consumer finance, thrifts and mortgage
finance, and mortgage real estate investment trusts (REITs). The
Real Estate Select Sector Index includes real estate management,
development and REITs, with the exception of mortgage REITs.
SSGA’s leading suite of US-listed select sector SPDR ETFs
includes 11 funds with $ 94.3 billion in assets as of August 31,
20161.
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 approximately 28 trillion in
assets under custody and administration and 2 trillion* in assets
under management, our scale and global footprint provide unrivaled
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 $2.3 trillion as of June 30,
2016. AUM reflects approx. $40 billion (as of 6/30/2016) with
respect to which State Street Global Markets, LLC (SSGM) serves as
marketing agent; SSGM and State Street Global Advisors are
affiliated.
In general, ETFs can be expected to move up or down in value
with the value of the applicable index. Although ETF shares may be
bought and sold on the exchange through any brokerage account, ETF
shares are not individually redeemable from the Fund. Investors may
acquire ETFs and tender them for redemption through the Fund in
Creation Unit Aggregations only. Please see the prospectus for more
details.
ETFs trade like stocks, are subject to investment risk,
fluctuate in market value and may trade at prices above or below
the ETF's net asset value. Brokerage commissions will reduce
returns. Index-based ETFs are passively managed and seek to track
an index of securities. Expenses may cause the ETF's returns to
deviate from the returns of the index.
Equity Securities may increase or decrease as a result of
market fluctuations, changes in interest rates and perceived trends
in stock prices.
Financial Services Sector Concentration Risk. Financial
services companies may be subject to the risks of government
regulation, deterioration of credit markets, losses resulting from
financial difficulties of borrowers and losses resulting from
investment activities.
Non-diversified funds invest a greater portion of assets
in fewer securities and therefore may be more vulnerable to adverse
changes in the market.
Real Estate Investment Trusts (REITS) investing may be
subject to risks including, but not limited to, declines in the
value of real estate, risks related to general economic conditions,
changes in the value of the underlying property owned by the trust
and defaults by borrowers.
It is not possible to invest directly in an index. Index
performance does not reflect charges and expenses associated with
the fund or brokerage commissions associated with buying and
selling a fund. Index performance is not meant to represent that of
any particular fund.
Investing involves risk, including the risk of loss of
principal.
Select Sector SPDR Funds bear a higher level of risk than more
broadly diversified funds. All ETFs are subject to risk, including
the possible loss of principal. Sector ETFs products are also
subject to sector risk and nondiversification risk, which generally
results in greater price fluctuations than the overall market.
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.
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® S&P® 500,
SPDR® S&P® MidCap 400 and SPDR Dow Jones Industrial Average,
and all unit investment trusts. ALPS Portfolio Solutions
Distributor, Inc. is distributor for Select Sector SPDRs. ALPS
Distributors, Inc. and ALPS Portfolio Solutions Distributor, Inc.
are not affiliated with State Street Global Markets, LLC
Before investing, consider the fund's investment objectives,
risks, charges and expenses. To obtain a prospectus or summary
prospectus which contains this and other information, call
1-866-SECTOR-ETF or visit
http://www.sectorspdr.com/sectorspdr/ to download a
prospectus or summary prospectus now, or talk to your financial
advisor. Read it carefully
Not FDIC Insured • No Bank Guarantee • May Lose Value
(C) 2016 State Street Corporation - All Rights Reserved
CORP-2191
Expiration date: 09/30/2017
SSL000 SSL000726 726
1 Bloomberg: 9/1/16
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version on businesswire.com: http://www.businesswire.com/news/home/20160919005845/en/
State Street CorporationAndrew Hopkins,
+1-617-664-2422Ahopkins2@StateStreet.com
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