London May 7, 2024 - State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT) has announced the launch of the State Street Global Climate Transition Equity Fund, an SFDR Article 8 fund investing in a concentrated portfolio of companies designed to capitalise on an anticipated transition to a low carbon economy.

Michael Solecki, CIO of State Street Global Advisors' (SSGA) Fundamental Equity Team comments: "This fund has been designed for investors who wish to integrate climate considerations, while generating alpha through a forward-looking, fundamental approach."

The fund will hold 30-40 companies, where the selection process includes an evaluation of their transition planning and commitment to emissions reduction.

Viki Farmaki, Senior Analyst with the Fundamental Growth and Core Team at State Street Global Advisors, adds:""Our experienced analyst team uses proprietary climate research to help identify companies which have credible, well thought-out plans for climate transition and emissions reductions. This, alongside our bottom-up fundamental analysis, is instrumental in identifying companies which we believe are likely to outperform in an anticipated transition to a lower carbon economy."

The factors through which the fund will seek to add value include:

  • Fundamental business knowledge: the fund is managed by SSGA's Active Fundamental Equity team, comprised of subject-matter experts in a range of industries, well-positioned to assess company's risks and opportunities as transition plans evolve.
  • Long-term perspective: corporate climate transition plans are expected to be implemented over the next decade (and beyond) and require patience, as frameworks develop and market valuations adjust.
  • Forward Looking: the fund's performance will be differentiated by a forward assessment of transition readiness. It is based on our equity analysts' deep knowledge of a company's fundamentals and is combined with their research on an industry's climate challenges. This gives unique insight into the climate readiness of our portfolio holdings.
  • Portfolio manager and company dialogue: dialogues between companies and the investment team will add insights into each company's intended low carbon pathway and progress.

The fund will be available in the following countries: Austria, France, Finland, Germany, Ireland, Italy, Luxembourg, Netherlands, Sweden, the UK and Spain.

The fund is co-managed by Esther Baroudy and John Flynn, who also manage State Street Global Advisors' flagship Global Opportunities Equity Fund.

About State Street Global Advisors

For four decades, State Street Global Advisors has served the world's governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions. As pioneers in index and ETF investing, we are always inventing new ways to invest. As a result, we have become the world's fourth-largest asset manager* with US $4.34 trillion† under our care.

*Pensions & Investments Research Center, as of 12/31/22.

† This figure is presented as of March 31, 2024 and includes ETF AUM of $1,360.89 billion USD of which approximately $65.87 billion USD is in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited.

Important Disclosures:

Marketing Communication.

For press use only.

Investing involves risk including the risk of loss of principal.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent.

All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

The returns on a portfolio of securities which exclude companies that do not meet the portfolio's specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.

Investments in emerging or developing markets may be more volatile and less liquid than investing in developed markets and may involve exposure to economic structures that are generally less diverse and mature and to political systems which have less stability than those of more developed countries.

Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.

The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any investment. It does not take into account any investor's or potential investor's particular investment objectives, strategies, tax status, risk appetite or investment horizon. If you require investment advice you should consult your tax and financial or other professional advisor.

This communication is directed at professional clients (this includes eligible counterparties as defined by the appropriate EU regulator) who are deemed both knowledgeable and experienced in matters relating to investments. The products and services to which this communication relates are only available to such persons and persons of any other description (including retail clients) should not rely on this communication.

Please refer to the Fund's latest Key Information Document (KID)/Key Investor Information Document (KIID) and Prospectus before making any final investment decision. The latest English version of the prospectus and the KID/KIID can be found at www.ssga.com. A summary of investor rights can be found here: https://www.ssga.com/library-content/products/fund-docs/summary-of-investor-rights/ssga-investors-rights-summary-template-non-etf-Lux.pdf

Note that the Management Company may decide to terminate the arrangements made for marketing and proceed with de-notification in compliance with Article 93a of Directive 2009/65/EC.

The information contained in this communication is not a research recommendation or 'investment research' and is classified as a 'Marketing Communication' in accordance with the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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Expiration date: 30 April 2025

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State Street Corporation published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 19:56:02 UTC.