State Street Corporation stands as a globally recognized financial services provider, offering a comprehensive suite of services to institutional investors. As a responsible financial entity, State Street Corporation and its affiliates, including State Street Global Advisors (SSGA), prioritize transparency and full disclosure to ensure investors are well-informed about the nature of their investments and associated risks. This document serves to outline crucial disclosures pertinent to institutional investors considering State Street’s offerings.
Understanding Investment Risks
Investing in financial markets inherently involves risks. It’s imperative for institutional investors to acknowledge that all investments carry the potential for loss of principal. Market fluctuations and various economic factors can influence investment values, and past performance is not indicative of future results. State Street Global Advisors explicitly states that the reproduction, copying, transmission, or disclosure of any of their materials to third parties without their express written consent is prohibited, underscoring the proprietary and confidential nature of their investment products and information.
Fund-Specific Disclosures: Liquid Reserves and ETFs
Certain investment products, such as funds and Exchange Traded Funds (ETFs), have specific disclosures that investors must consider. For instance, the State Street Institutional Liquid Reserves Fund carries the risk of potential money loss. The share price of such funds is not fixed and will fluctuate, meaning investors could receive less than their original investment upon selling shares. Furthermore, these funds may impose fees on share sales due to market conditions or other factors, especially in scenarios of significant net redemptions. It is critical to note that investments in these funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Importantly, while State Street Corporation sponsors these funds, it has no legal obligation to provide financial support to them, and investors should not expect such support.
ETFs, while offering diversification and trading flexibility, also come with their own set of risks. They trade like stocks and are subject to market risk, with values that can fluctuate and potentially trade above or below their net asset value. Brokerage commissions and ETF expenses will directly impact and reduce overall investment returns.
Index Licensing and Disclaimers: S&P 500® Index
State Street Global Advisors utilizes various indices, such as the S&P 500®, as benchmarks for investment products. It’s important to understand the licensing agreements associated with these indices. The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates (“S&P DJI”) and is licensed for use by State Street Global Advisors. Trademarks like S&P®, SPDR®, and S&P 500® are owned by Standard & Poor’s Financial Services LLC (“S&P”), and Dow Jones® is owned by Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks are licensed to S&P DJI and subsequently sublicensed to State Street Global Advisors for specific purposes. It is crucial to recognize that funds linked to these indices are not sponsored, endorsed, sold, or promoted by S&P DJI, Dow Jones, or S&P. These entities bear no responsibility regarding the advisability of investing in such products and have no liability for any errors, omissions, or interruptions of these indices.
Regulatory and Distribution Information
State Street Global Advisors Funds Distributors, LLC, a member of FINRA and SIPC and an indirect wholly-owned subsidiary of State Street Corporation, acts as the distributor for many of their funds. References to “State Street” may encompass State Street Corporation and its affiliates. Certain State Street affiliates provide services to and receive fees from SPDR ETFs. It is also noted that ALPS Distributors, Inc., and ALPS Portfolio Solutions Distributor, Inc., both FINRA members, serve as distributors for specific investment trusts but are not affiliated with State Street Global Advisors Funds Distributors, LLC. Investors can verify firm information through FINRA’s BrokerCheck (FINRA’s BrokerCheck), a valuable resource for due diligence.
Important Considerations for Qualified Investors
The information provided by State Street Corporation is intended exclusively for qualified investors. Nothing on their websites or materials should be interpreted as a solicitation or offer to buy or sell any security or engage in any transaction. The products and services offered by SSGA Intermediary Business are tailored for specific investor categories, and not all products are available to all investors. The distribution or use of this information in jurisdictions where it would be against the law or regulation is not intended.
The information provided by State Street does not constitute investment advice and should not be considered as such. It should not be seen as a solicitation to buy or sell securities and does not account for individual investor objectives, tax status, or investment horizons. Investors are strongly advised to consult with their own tax and financial advisors. While State Street utilizes sources believed to be reliable, they do not guarantee the accuracy of all information and are not liable for decisions made based on this information.
Compliance and Investor Responsibility
All individuals and entities accessing State Street’s information do so on their own initiative and are responsible for adhering to local laws and regulations. Their materials are not directed at individuals in jurisdictions where the publication or availability of such information is prohibited. Individuals under such restrictions must not access their sites or materials. For non-U.S. investors, the products and services are generally intended for persons in the United States or as otherwise permissible under local law.
Prospectus and Further Information
Prior to investing, investors are urged to carefully consider the funds’ investment objectives, risks, charges, and expenses. To obtain a prospectus or summary prospectus containing this and other essential information, investors can utilize the provided contact numbers for ETFs, cash funds, ELFUN, or institutional services, or download directly from State Street Global Advisors’ website (download a prospectus or summary prospectus now). Reading the prospectus carefully before making any investment decisions is paramount.
It is again emphasized that investments are Not FDIC Insured, Carry No Bank Guarantee, and May Lose Value.
By providing these comprehensive disclosures, State Street Corporation aims to equip institutional investors with the necessary information to make informed investment decisions, reinforcing their commitment to responsible and transparent financial practices.
