State Street Global Advisors Launches MLP Strategy for Institutional Investors
BOSTON--(BUSINESS WIRE)-- State Street Global Advisors (SSgA), the asset management business of State Street Corporation (STT), today announced the launch of the SSgA S&P MLP Index Strategy. This passive strategy offers institutional investors the opportunity to gain exposure to master limited partnerships (MLPs) and other related securities of companies in the energy infrastructure sector, including those typically engaged in the transportation, storage, refining, marketing, exploration, production, and processing of minerals and natural resources.
SSgAs S&P MLP Index strategy is managed using a replication methodology to proportionally invest in the securities comprising the S&P MLP Index, and is currently implemented as separately managed accounts. These securities include both MLPs and publicly traded limited liability companies (LLCs), characterized by favorable tax structures and steady distribution payments. The total annualized returns and distribution rate of the S&P MLP Index as of June 30, 2012 are 7.72 percent (1-year), 26.88 percent (3-year) and 9.62 percent (5-year) with a distribution rate of 5.99 percent.
The current growth in the energy infrastructure industry offers opportunities to investors seeking to diversify their portfolio while generating stable revenue streams, said Lynn Blake, senior managing director of SSgA and CIO of Global Equity Beta Solutions. With SSgAs S&P MLP Index strategy, clients have access to an alternative asset class with high historical returns and distribution rates.
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 worlds leading providers of financial services to institutional investors.
Although investments in MLPs and related securities may provide tax advantages (including potentially the absence of entity-level taxation), interests in MLPs and related securities are complex and involve risks that differ from investments in common stocks and may have unique or adverse tax or other consequences on investors in the SSgA S&P MLP Index Strategy (the Strategy); potential investors should consult their tax, legal, financial or other advisor before investing in the Strategy. The Strategy will likely generate unrelated business taxable income, and may be inappropriate for some investors.
This document provides summary information regarding the Strategy. This document should be read in conjunction with the Strategy's Disclosure Document, which is available from SSgA. The Strategy Disclosure Document contains important information about the Strategy, including a description of a number of risks.
Risk associated with equity investing include stock values which may fluctuate in response to the activities of individual companies and general market and economic conditions.
Derivative investments may involve risks such as potential illiquidity of the markets and additional risk of loss of principal.
There are a number of risks associated with futures investing including but not limited to counterparty credit risk, currency risk, derivatives risk, foreign issuer exposure risk, sector concentration risk, leveraging and liquidity risks.
State Street Corporation
Alicia Curran Sweeney, +1 617-664-3001
Source: State Street CorporationCopyright Business Wire 2012