spdr etfs fixed income chart pack · 2020. 8. 5. · brokerage assetmanagers… other financial...
TRANSCRIPT
SPDR®
ETFs
Fixed Income
Chart Pack
Please see Appendix A for more information on investment terms used in this Chart Pack.
Charts for the Latest Bond Market Insights and Analytics
Q3 2020
13157489.1.1.ANZ.RTL
Source: Bloomberg Finance, L.P. As of June 30, 2020. Past performance is not a reliable indicator of future results. T-bills - Bloomberg Barclays U.S. Tr Bills: 1-3 Months Index, US Aggregate - Bloomberg
Barclays US Agg Index, US Treasury - Bloomberg Barclays US Treasury Index, US TIPS - Bloomberg Barclays Global Inflation-Linked: U.S. TIPS Index, US MBS - Bloomberg Barclays US MBS Index, US IG
Corporates - Bloomberg Barclays US Corporate Index, 1-10 YR IG Corporates - Bloomberg Barclays Intermediate Corporate Index, 10 Yr+ IG Corporates - Bloomberg Barclays Long U.S. Corporate Index, US High
Yield - Bloomberg Barclays VLI: High Yield Index, Leveraged Loans - S&P/LSTA Leveraged Loan Index, Developed Ex-US IG Corporates - Bloomberg Barclays Global Agg Corporate ex USD $1B+ Index, Developed
Ex-US Sovereign Bonds - Bloomberg Barclays Global Treasury ex-U.S. Index, EM Hard Currency Sovereign Bonds - J.P. Morgan EMBI Global Core Index, EM Local Sovereign Bonds - Bloomberg Barclays EM
Local Currency Govt Diversified Index
3157489.1.1.ANZ.RTL 2
Bond Market PerformanceGiven the supportive monetary policies, credit, and more risk-on oriented bond
exposures, performed strongly in June as well as in Q2
Bond Sector Performance
3.5%
2.5%2.0% 2.0% 1.6%
1.1% 1.1% 1.1% 0.9% 0.6%0.1% 0.0% 0.0%
-0.1%
-30%
-25%
-20%
-15%
-10%
-5%
0%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
EM HardCurrencySovereign
Bonds
10 Yr+ IGCorporates
DevelopedEx-US IG
Corporates
US IGCorporates
1-10 Yr IGCorporates
LeveragedLoans
US TIPS DevelopedEx-US
SovreignBonds
EM LocalCurrencySovereign
Bonds
USAggregate
USTreasury
US HighYield
T-Bills US MBS
1 Y
ea
r M
ax D
raw
do
wn
(%
)
Retu
rns (
%)
June Q2 1 Year 1 Year Max Drawdown
TIPS outperformed nominals in June, their third
month in a row of strong performance
3157489.1.1.ANZ.RTL 3
Bond Market Yield and DurationLonger duration sectors have performed well over the past year, but the strong
performance has eroded any potential yield in this current market
Bond Market Segments Yield and Duration
6.9
5.6
4.4
2.1
1.5 1.4 1.30.9 0.9
0.50.3 0.2
4.2
0.2
6.6
8.5
4.6
3.3
6.3
0.1
1.9
7
3.9
1.9
0
0
0
1
1
1
1
0
1
2
3
4
5
6
7
8
9
HYCorporates
LeveragedLoans
EM HardCurrency
BroadCorporates
IntermediateCorporates
MBS Aggregate FloatingRate Notes
Corporates:1-3 Year
BroadTreasuries
IntermediateTreasuries
USTreasury: 1-
3 Year
1 Y
ea
r Retu
rn (%
)Y
ield
(%
), D
ura
tio
n (
Ye
ars
)
Yield to Worst Duration
Source: Bloomberg Finance, L.P. as of June 30, 2020. Past performance is not a reliable indicator of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Performance returns for periods of less than one year are not annualized. Intermediate Treasuries: Bloomberg Barclays Intermediate Treasury Index, US Treasury: 1-3 Year: Bloomberg Barclays U.S. Treasury 1-3 Year Index, Broad Treasuries: Bloomberg Barclays US Treasury Index, Corporates: 1-3 Year: Bloomberg Barclays US Corporate 1-3 Year Index, Aggregate: Bloomberg Barclays US Agg Index, MBS: Bloomberg Barclays US MBS Index , Intermediate Corporates: Bloomberg Barclays Intermediate Corporate Index , Floating Rate Notes: Bloomberg Barclays FRN < 5yr Index, Broad Corporates: Bloomberg Barclays US Corporate Index ,HY Corporates: Bloomberg Barclays US Corporate High Yield Index.
Intermediate corporates and MBS have had strong returns over
the past year, but still have a balanced yield/duration profile
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
2019 Q1 2020 Q2 2020 2020 2020 - 2019
Intermediate Core Bond Intermediate Core Plus Bond HY Bond
3157489.1.1.ANZ.RTL 4
Active Performance BarometerActive fixed income managers, contrary to historical trends, have had poor
performance in 2020 – but did rebound in Q2
Percent of Managers Outperforming Prospectus Benchmark
Source: Morningstar as of June 30, 2020. Past performance is not a reliable indicator of future results.
As a result of their credit bias, core plus managers faired
the worst in Q1 2020, but rebounded strongly in Q2
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2019 Q1 2020 Q2 2020 2020 2020 - 2019
Intermediate Core Bond Intermediate Core Plus Bond HY Bond
Average Manager Excess Return versus Prospectus Benchmark
Excess returns have been
noticeably negative in 2020
0.1 0.1 0.2
0.1 0.1 0.2 0.30.5 0.6
1.4
1.5 1.5 1.6 1.6 1.6 1.6 1.7 1.8 1.9
2.4
0.0 0.1 0.1
0.2 0.2 0.3 0.4 0.50.7
1.3
0.0
0.5
1.0
1.5
2.0
2.5
3.0
1M 3M 6M 1Y 2Y 3Y 5Y 7Y 10Y 30Y
Yie
ld (
%)
6/30/2020 12/31/2019 3/31/2020
Source: Bloomberg Finance, L.P. As of June 30, 2020. Past performance is not a reliable indicator of future results.
3157489.1.1.ANZ.RTL 5
Yield CurveThe yield curve slightly flattened with long term rates falling given the spike in
volatility mid-month from a resurgence of COVID-19 cases in the US
US Treasury Curve US Treasury Active:
-133 -141 -143 -143 -142 -144 -142 -137 -130
-102
10 5 1
-2 -10 -13 -11 -8 -5
50 0
0 -2 -1 -3 -3 -4 -3 -4
-200
-150
-100
-50
0
50
1M 3M 6M 1Y 2Y 3Y 5Y 7Y 10Y 30Y
Ch
an
ge
in
Bp
s
YTD Trailing 3 Months 1 Month
Source: Bloomberg Finance, L.P. As of June 30, 2020. Past performance is not a reliable indicator of future results.
3157489.1.1.ANZ.RTL 6
Rates Trends The US 10 Year has decoupled from the latest reading on manufacturing.
Meanwhile, futures positioning has climbed as investors have de-risked portfolios
US 10 Year Yield (%) versus ISM Manufacturing PMI
Based on the relationship to the PMI, the US
10 Year Yield should be higher
40
45
50
55
60
65
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Jul-12 Aug-13 Sep-14 Oct-15 Nov-16 Dec-17 Jan-19 Feb-20
ISM
PM
I L
eve
l
Yie
ld (
%)
US 10 Year Yield (%) ISM Manufacturing PMI
72%
0%
20%
40%
60%
80%
100%
Jul-15 Sep-16 Nov-17 Jan-19 Mar-20
CFTC US 10 Year Treasury Net Non-Commercial Futures Positions
Percentile Rank
1420
666
469
626
207
150
1173
570
384
550
165
158
US High Yield CCC & Lower
US High Yield B Rated
US High Yield BB Rated
Broad High Yield
US BBB Rated
IG Corporate
20-Yr Avg
6/30/2020
Source: Bloomberg Finance, L.P. BofA Merrill Lynch, As of June 30, 2020. US High Yield CCC & Lower = BofA ML US High Yield CCC & Lower Rated Index. US High Yield B Rated = BofAML US High Yield B Rated Index. BBB Rated = BofA ML US Investment Grade BBB Rated Index. Broad high yield = Bloomberg Barclays US Corporate High Yield Index. IG Corporate = Bloomberg Barclays US Corporate Index. Past performance is not a reliable indicator of future results.
3157489.1.1.ANZ.RTL 7
Credit Trends With support from the Federal Reserve, credit spreads continued falling from their
historic highs in March
Credit Spreads Credit Spread Changes in Basis Points
Credit Spread Current vs. 20-Yr Averages
IG Corp spreads are
now below long-
term averages
High yield spreads reached 11% intra-month, which was still
well below their peak level during the global financial crisis
-24
-37
-12
1
6
-94
35
50
249
226
232
423
IG Corporate
US BBB Rated
Broad High Yield
US High Yield BB Rated
US High Yield B Rated
High Yield CCC & Lower
1 Year June
0
5
10
15
20
25
Bloomberg Barclays US Corporate High Yield Index
Bloomberg Barclays US Corporate Index
Bloomberg Barclays High Yield Energy Index
0%
5%
10%
15%
20%
25%
Jun-13 Oct-14 Feb-16 Jun-17 Oct-18 Feb-20
% of High Yield Trading as Distressed
0
500
1000
1500
2000
2500
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Q1 Q2 Q3 Q4
Percent of High Yield Bonds Trading at Distressed Levels
Source: Bloomberg Finance, L.P. BofA Merrill Lynch, as of June 30, 2020.
3157489.1.1.ANZ.RTL 8
Credit Trends (Continued)Downgrades have increased significantly in 2020, outpacing every year over the last
ten years even through just two quarters
Yearly Downgrades By Quarter for North American Credits
There were more downgrades in Q2 and in Q1, as
2020 is setting records for number of downgrades
The positive change in sentiment from policy has
decreased the percentage bonds trading distressed
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
Year to Date Q2 June
%
Curve Change Curve Carry Spread Return
Source: Bloomberg Finance, L.P As of June 30, 2020. Past performance is not a reliable indicator of future results. US IG Corporates - Bloomberg Barclays US Corporate Index, US
High Yield - Bloomberg Barclays VLI: High Yield Index
3157489.1.1.ANZ.RTL 9
Credit AttributionBoth high yield and investment grade corporate bonds produced strong returns in
Q2, however, high yield remains down for the year while IG is positive
US High Yield Attribution
Spread return was the main driver of
positive returns in Q2
-6
-4
-2
0
2
4
6
8
10
12
Year to Date Q2 June
%
Curve Change Curve Carry Spread Return
US IG Corporate Attribution
5.02 8.99
-4.43
9.00 IG Credit posted similar returns to HY in
Q2 as spreads tightened
-0.03 1.96
-30 -20 -10 0 10 20
Insurance
Banking
Technology
Electric
Consumer Non-Cyclical
Brokerage Assetmanagers…
Other Financial
Communications
Basic Industry
Other Industrial
Capital Goods
Consumer Cyclical
Finance Companies
REITs
Energy
Transportation
YTD Spread Change (%) YTD Return (%)
Source: Bloomberg Finance, L.P As of June 30, 2020. Past performance is not a reliable indicator of future results.
US IG Corporates - Bloomberg Barclays US Corporate Index, US High Yield - Bloomberg Barclays VLI: High Yield Index
3157489.1.1.ANZ.RTL 10
Credit Sector AttributionIn Q2, almost every credit sector had strong returns with the exception of
transportation. Only insurance high yield bonds have had positive returns in 2020
US High Yield Return and Spread Change By Sector
Airline bonds have performed the worst
in year-to-date
US High Yield Return and Spread Change By Sector
Energy bonds rallied the most, while
airline bonds continued to lag
-20 -10 0 10 20 30 40 50
Transportation
Communications
Electric
Capital Goods
Technology
Consumer Non-Cyclical
Finance Companies
Insurance
Banking
Other Financial
Consumer Cyclical
Basic Industry
Brokerage Assetmanagers…
REITs
Other Industrial
Energy
Q2 Spread Change (%) Q2 Return (%)
45
50
55
60
65
70
75
80
85
Jul-09 Sep-11 Nov-13 Jan-16 Mar-18 May-20
Delta Median Bottom Quintile Top Quintile
Source: Bloomberg Finance, L.P. As of June 30, 2020. Past performance is not a reliable indicator of future results.
3157489.1.1.ANZ.RTL 11
Convertibles AttributionConvertibles have outpaced the S&P 500 by 13.5% so far in 2020, and as they have
rallied they have become more stock sensitive
US Convertibles Liquid Bond Index – Average Stock Delta US Convertibles Liquid Bond Index – Premium to Parity
Low delta, high premium = bond like
High delta, low premium = stock like
15
25
35
45
55
65
75
Jul-09 Sep-11 Nov-13 Jan-16 Mar-18 May-20
% Prem. Median Bottom Quintile Top Quintile
Premiums fell as well, adding more evidence that
convertibles have become more stock sensitive
After the sell-off, convertibles have rebounded and their
delta to the underlying stocks has increased
-10%
-7%
-4%
-1%
2%
5%
-10% -5% 0% 5%
EM
Curr
en
cy M
on
thly
Retu
rns
EM Local Sovereign Debt Monthly Returns
Source: Bloomberg Finance, L.P. As of June 30, 2020
EM Local – Bloomberg Barclays EM Local Sovereign Bond Index.
Past performance is not a reliable indicator of future results.
3157489.1.1.ANZ.RTL 12
Emerging Market (EM) Debt AttributionGiven the risk-off market environment, the dollar rallied 6% to start 2020. And as a
result of its strong correlation to currency movements, EM Local Debt sold off
EM Local Sovereign Debt Attribution
-15
-10
-5
0
5
10
Year to Date Q2 June
%
Curve Change Curve Carry Spread Return Currency Return
EM Local Sovereign Debt Return Correlation to EM Currencies (2009 – 2020)
0%
2%
4%
6%
8%
10%
12%
14%
0% 5% 10% 15% 20%
EM
Curr
en
cy 1
Ye
ar
Sta
nd
ard
D
evia
tio
n R
etu
rns
EM Local Sovereign 1 Year Standard Deviation of Returns
50% of the negative currency return
year to date occurred in March
-10.8
Correlation: 93%
Correlation: 89%
7.9
0.9
Source: Bloomberg Finance, L.P. As of June 30, 2020, calculations by SPDR Americas Research. Past performance is not a reliable indicator of future results. All figures are in USD.
3157489.1.1.ANZ.RTL 13
ETF Fund Flow Trends Bond ETFs took in a record $35 billion of inflows in June – fueled by IG Corp and
Aggregate Bond ETFs which made up 74% of the flow
16,746
10,692
3,196
57
-162
-1,498
-4%
-2%
0%
2%
4%
6%
8%
10%
-5000
0
5000
10000
15000
20000
IG Corp. Agg. Infl.Linked
Preferred BankLoans
Govt
% A
UM
Gro
wth
from
Flo
ws
Flo
ws
($
M)
Jun Month to Date (% of Start of Month AUM)
Top 3 Bottom 3
Fixed Income ETFs Yearly Flows – 1st half versus 2nd half
($ Billions)
5360
91
126
97
156
207
2014 2015 2016 2017 2018 2019 2020
First Half Second Half
Based upon historical second half growth rates,
bond ETFs could take in a record $207 billion in 2020
Fixed Income Top and Bottom 3 Sectors by Flow
-10
-5
0
5
10
15
20
25
30
35
40
1/2 1/21 2/9 2/28 3/18 4/6 4/25 5/14 6/2 6/21
IG Corp. High Yield
Source: Bloomberg Finance, L.P. As of June 30, 2020. Past performance is not a reliable indicator of future results. https://www.federalreserve.gov/monetarypolicy/files/smccf-
transition-specific-disclosures-6-28-20.xlsx The Fed specific flow totals are based upon data through June 16, 2020 per the most recent report from the Federal Reserve, as a result they
may not sum to the total values reported for the industry as of June 30, 2020. All figures are in USD.
3157489.1.1.ANZ.RTL 14
ETF Fund Flow Trends (continued)Based on the average secondary-to-primary ratio for the ETFs in the Fed’s
program, the amount purchased by the Fed represents just 7% of all flows
High Yield and Investment-Grade Corporate Bond ETFs Part of
Fed Purchase Program Fund Flow Attribution ($ Billions)
Cumulative 2020 IG Corp and High Yield ETF Flows ($Billions)
Buyers of both credit types returned,
following the stimulus policy actions
After a constant stretch of inflows, high yield
ETFs had outflows to end the month
0.9
13.9
14.8
0
2
4
6
8
10
12
14
16
Estimated Fed FundFlows
All Other Investor FundFlows
Total
Source: Bloomberg Finance, L.P. as of June 30, 2020. Calculations by SPDR Americas Research. Past performance is not a reliable indicator of future results.
3157489.1.1.ANZ.RTL 15
Bond Market OpportunitiesThree strategies for a market environment featuring low rates and idiosyncratic
volatility stemming from ongoing impacts from a global pandemic
Ride Hybrids for
Potential Total
Return
Convertibles profile may be
beneficial for generating
sufficient total return from both
the coupon and capital
appreciation, while positioning
portfolios for a potential recovery
that may feature periods of
idiosyncratic aftershocks of
volatility.
Adopt a Mortgage
Bias to Play
Defense
The Fed will be purchasing
agency mortgage-backed
securities (MBS), similar to the
GFC crisis era stimulus tools
Beyond having a large, constant
buyer that will likely support a
steady “bid” on the asset class,
MBS have had a higher yield
per unit of duration and yield per
unit of standard deviation than
US Treasuries, the Agg, and IG
Corporates
Catch Fallen
Angels on the
Hunt for Yield
The Federal Reserve’s new
lending programs, it has
transformed once risky bonds such
as corporates, fallen angels and
even junk bond ETFs into risky
bonds that are now implicitly
backed by the Fed.
As a result, high yield may be an
area to harness a fallen angel
premium while seeking income that
potentially has less downside risk
than one may normally expect.
Basis Point: One hundredth of one percent, or 0.01%.
The Bloomberg Barclays US Treasury Bill Index tracks the market for treasury bills
issued by the US government. US Treasury bills are issued in fixed maturity terms of 4-,
13-, 26- and 52-weeks. The US Treasury Bill Index is a component of the US Short
Treasury Index along with US Treasury notes and bonds that have fallen below one year
to maturity.
The Bloomberg Barclays Global Aggregate Index is a measure of global investment
grade debt from 24 local currency markets. This multi- currency benchmark includes
treasury, government-related, corporate and securitized fixed-rate bonds from both
developed and emerging markets issuers.
The Bloomberg Barclays US Mortgage Backed Securities (MBS) Index tracks agency
mortgage pass-through securities (no longer incorporates hybrid ARM) guaranteed by
Ginnie Mae (GNMA), Mae (FNMA), and Freddie Mac (FHLMC). The index is constructed
by grouping individual TBA- deliverable MBS pools into aggregates or generics based on
program, coupon and vintage.
Bloomberg Barclays US Aggregate Index: A benchmark that provides a measure of the
performance of the US dollar denominated investment grade bond market, which includes
investment grade government bonds, investment grade corporate bonds, mortgage pass
through securities, commercial mortgage backed securities and asset backed securities
that are publicly for sale in the US.
Bloomberg Barclays US Corporate 1–3 Year Index: The Index includes publicly issued
US dollar denominated corporate issues that have a remaining maturity of greater than or
equal to 1 year and less than 3 years, are rated investment grade.
Bloomberg Barclays US Corporate Bond Index: The Bloomberg Barclays US Corporate
Bond Index measures the investment grade, US dollar-denominated, fixed-rate, taxable
corporate and government related bond markets. It is composed of the US Corporate
Index and a non-corporate component that includes foreign agencies, sovereigns,
supranationals and local authorities.
The Bloomberg Barclays Emerging Markets Local Currency Liquid Government
Index is a country-constrained, more liquid version of the flagship Emerging Markets Local
Currency Government Index, which is designed to provide a broad measure of the
performance of local currency Emerging Markets (EM)
Bloomberg US Treasury Index: The Bloomberg US Treasury Bond Index is a rules-
based, market-value weighted index engineered to measure the performance and
characteristics of fixed rate coupon US Treasuries which have a maturity greater than 12
months.
The Bloomberg Barclays US Convertible Liquid Bond Index is designed to represent
the market of U.S. convertible securities, such as convertible bonds.
TIPS are Treasury Inflation Protect Securities issued by the US Government
Credit Spread: A credit spread is the difference in yield between a US Treasury bond and
a debt security with the same maturity but of lesser quality.
Parity The value of the underlying equity if the convertible is converted. It is equal to the
current stock price multiplied by the number of shares for which the bond may be
exchanged.
S&P/LSTA US Leveraged Loan 100 Index: The S&P/LSTA US Leveraged Loan 100
Index is designed to reflect the largest facilities in the leveraged loan market.
Delta: The sensitivity of one asset to an underlying deriviative
Spread Changes: Changes in the spread between Treasury securities and non-Treasury
securities that are identical in all respects except for quality rating.
Parity The value of the underlying equity if the convertible is converted. It is equal to the
current stock price multiplied by the number of shares for which the bond may be
exchanged.
Standard Deviation: Measures the historical dispersion of a security, fund or index
around an average. Investors use standard deviation to measure expected risk or
volatility, and a higher standard deviation means the security has tended to show higher
volatility or price swings in the past.
Yield: The income produced by an investment, typically calculated as the interest received
annually divided by the investment’s price.
Yield Curve: A graph or line that plots the interest rates or yields of bonds with similar
credit quality but different durations, typically from shortest to longest duration. When the
yield curve is said to be flat, it means the difference in yields between bonds with shorter
and longer durations is relatively narrow. When the yield curve is said to be steepened, it
means the difference in yields between short term and long term bonds increases.
Yield to Worst: Yield to worst is an estimate of the lowest yield that you can expect to
earn from a bond when holding to maturity, absent a default. It is a measure that is used in
place of yield to maturity with callable bonds.
Appendix A
Definitions
163157489.1.1.ANZ.RTL
Issued by State Street Global Advisors, Australia Services Limited (AFSL Number 274900,
ABN 16 108 671 441) ("SSGA, ASL"). Registered office: Level 14, 420 George Street,
Sydney, NSW 2000, Australia · Telephone: 612 9240-7600 · Web: www.ssga.com.
This material is general information only and does not take into account your individual
objectives, financial situation or needs and you should consider whether it is appropriate
for you. You should seek professional advice and consider the product disclosure
document, available at www.ssga.com, before deciding whether to acquire or continue to
hold units in an ETF. This material should not be considered a solicitation to buy or sell a
security.
The views expressed in this material are the views of the SPDR Americas Research Team
through the period ended 30 June 2020 and are subject to change based on market and
other conditions.
This document contains certain statements that may be deemed forward-looking
statements. Please note that any such statements are not guarantees of any future
performance and actual results or developments may differ materially from those
projected.
The information provided does not constitute investment advice and it should not be relied
on as such. It should not be considered a solicitation to buy or an offer to sell a security.
It does not take into account any investor’s particular investment objectives, strategies, tax
status or investment horizon. You should consult your tax and financial advisor.
Investing involves risk including the risk of loss of principal.
All material has been obtained from sources believed to be reliable. There is no
representation or warranty as to the accuracy of the information and State Street shall
have no liability for decisions based on such information.
All the index performance results referred to are provided exclusively for comparison
purposes only. It should not be assumed that they represent the performance of any
particular investment.
Bonds generally present less short-term risk and volatility than stocks, but contain interest
rate risk (as interest rates rise, 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 value of the debt securities may increase or decrease as a result of the following:
market fluctuations, increases in interest rates, inability of issuers to repay principal and
interest or illiquidity in the debt securities markets; the risk of low rates of return due to
reinvestment of securities during periods of falling interest rates or repayment by issuers
with higher coupon or interest rates; and/or the risk of low income due to falling interest
rates. To the extent that interest rates rise, certain underlying obligations may be paid off
substantially slower than originally anticipated and the value of those securities may fall
sharply. This may result in a reduction in income from debt securities income.
Investing in foreign domiciled securities may involve risk of capital loss from unfavorable
fluctuation in currency values, withholding taxes, from differences in generally accepted
accounting principles or from economic or political instability in other nations.
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.
The trademarks and service marks referenced herein are the property of their respective
owners. Third party data providers make no warranties or representations of any kind
relating to the accuracy, completeness or timeliness of the data and have no liability for
damages of any kind relating to the use of such data.
Standard & Poor’s, S&P and SPDR are registered trademarks of Standard & Poor’s
Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones
Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use
by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State
Street Corporation. State Street Corporation’s financial products are not sponsored,
endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and
third party licensors and none of such parties make any representation regarding the
advisability of investing in such product(s) nor do they have any liability in relation thereto,
including for any errors, omissions, or interruptions of any index.
BLOOMBERG and BLOOMBERG INDEXES are trademarks or service marks of
Bloomberg Finance L.P. Bloomberg Finance L.P. and its affiliates ("collectively,
"Bloomberg") or Bloomberg's licensors own all proprietary right in the BLOOMBERG
INDEXES. Bloomberg do not approve or endorse this material and disclaim all liability for
any loss or damage of any kind arising out of the use of all or any part of this material.
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 ASL’s express written consent.
Tracking Code:
3157489.1.1.ANZ.RTL
Expiration Date: October 31, 2020
Appendix B
Important Disclosures
173157489.1.1.ANZ.RTL