For institutional / professional investors use only.
Investing is inherently associated with risk, including the potential loss of principal. It is crucial to understand these risks before making any investment decisions, particularly when considering firms like State Street Trust Company and their offerings. This article aims to provide a clear overview of the important risk disclosures associated with investing through State Street Trust Company, ensuring qualified investors are well-informed.
State Street Trust Company, operating under the umbrella of State Street Global Advisors (SSGA), provides a range of investment products including funds and Exchange Traded Funds (ETFs). These investment vehicles are subject to market fluctuations and various economic factors that can impact their value. Therefore, investors must acknowledge that the value of their investments can go down as well as up, and past performance is not indicative of future results.
One key aspect to consider is the potential for fees. Certain funds managed by State Street Trust Company may impose fees on the sale of shares due to market conditions or other factors. For instance, the State Street Institutional Liquid Reserves Fund highlights that investors could lose money and that share prices are expected to fluctuate. Furthermore, this fund may impose sale fees or be required to do so if daily net redemptions exceed a certain threshold of the fund’s net assets. It is vital to note that investments in such funds are not insured or guaranteed by the FDIC or any other government agency, and State Street Trust Company has no legal obligation to provide financial support to these funds.
ETFs, another offering linked to State Street Trust Company, also carry investment risks. They trade like stocks and their market value can fluctuate, potentially trading above or below their net asset value. Brokerage commissions and ETF expenses will reduce overall investment returns. Indexes such as the S&P 500®, often tracked by State Street’s SPDR ETFs, are products of S&P Dow Jones Indices LLC and are licensed for use. However, these index providers do not endorse or guarantee the performance of these investment products and hold no liability for errors or omissions in the indices.
It is also essential to recognize that information provided by State Street Trust Company and its affiliates is intended for qualified investors only. This website and related materials are not solicitations to buy or offers to sell securities in jurisdictions where such actions would be unlawful. The information provided is not investment advice and should not be treated as such. Investors should consult with their own financial and tax advisors to consider their specific investment objectives, tax status, and investment horizon before making any decisions.
For those seeking detailed information, prospectuses and summary prospectuses are available. These documents contain crucial information about the funds’ investment objectives, risks, charges, and expenses. To obtain these documents, investors can call the provided phone numbers for ETFs, cash funds, ELFUN, or institutional services, or download them online. It is imperative to read these prospectuses carefully before investing.
Not FDIC Insured * No Bank Guarantee * May Lose Value
In conclusion, investing with or through entities like State Street Trust Company requires a thorough understanding of the associated risks. While State Street Trust Company offers a range of investment solutions, it is crucial for investors to conduct their own due diligence, understand the specific risks involved in each product, and consult with financial advisors to ensure investments align with their financial goals and risk tolerance. Always remember to read the prospectus before making any investment decisions.
