BOSTON–(BUSINESS WIRE)–State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced the launch of the State Street ESG Liquid Reserves Fund (the “Fund”) which seeks to apply financially material environmental, social, and governance (ESG) scores to the management of the Fund. The Fund is the first money market fund to offer a portfolio composed entirely of investments that meet ESG criteria at the time of purchase.
“We’re proud to apply State Street Global Advisors’ longstanding ESG commitment to the launch of this fund, which provides the first fully ESG-focused money market fund option by incorporating sustainable investing within a cash strategy,” said Pia McCusker, global head of Cash Management at State Street Global Advisors.
The Fund uses R-FactorTM, State Street Global Advisors’ new ESG scoring system that draws on multiple data sources and leverages widely accepted and transparent materiality frameworks to generate a unique ESG score for issuers. In particular, R- FactorTM leverages the Sustainability Account Standards Board’s (SASB) and country-specific corporate governance frameworks and provides transparency into how and what State Street Global Advisors considers to be financially material ESG factors.
The Fund invests in prime money market instruments that meet State Street Global Advisors’ ESG criteria. The portfolio construction process is a multi-step method involving fundamental risk budget allocation, optimization, and ESG assessment. The Fund, which is domiciled in the United States and registered under the Investment Company Act of 1940 (the “Act”), will have a floating net asset value and will be managed and operated to comply with Rule 2a-7 of the Act.
“As appetites for ESG investment opportunities continue to grow, institutional investors need options across all asset classes. There’s currently an industry-wide lack of ESG data that is financially material, consistently reported, and comparable across firms; using the R-FactorTM scoring system allows us to address this critical issue by incorporating State Street Global Advisors’ expertise,” said McCusker. “This is only the beginning for the application of R-FactorTM as we explore further ESG-related opportunities at the institutional level.”
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 active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see that what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s third largest asset manager with nearly US $2.80 trillion* under our care.
* This figure is presented as of March 31, 2019 and includes approximately $33 billion of 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.
Important Risk Information:
Investing involves risk, including the risk of loss of principal.
Concentrated investments in a particular sector or industry tend to be more volatile than the overall market and increases risk that events negatively affecting such sectors or industries could reduce returns, potentially causing the value of the Fund’s shares to decrease.
The Fund is a money market fund, pursuant to Rule 2a-7 under the Investment Company Act of 1940, as amended. The net asset value (“NAV”) of the Fund’s shares is expected to “float,” fluctuating with changes in the values of the Fund’s portfolio securities. The Fund typically accepts purchase and redemption orders multiple times per day, and calculates its NAV at each such time. Please see the Fund’s Prospectus www.ssga.com/cash for additional information.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. The SSGA Funds pay State Street Bank and Trust Company for its services as custodian, transfer agent and shareholder servicing agent and pay SSGA Funds Management, Inc. for investment advisory and administration services.
Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-877.521.4083 or download a prospectus now from www.ssga.com/cash, talk to your financial advisor. Read it carefully before investing.
Not FDIC Insured – No Bank Guarantee – May Lose Value
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© 2019 State Street Corporation – All Rights Reserved
Expiration Date: 6/30/2020