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Press release from Business Wire

SSgA Partners with GSO / Blackstone to Bring First Actively Managed Senior Loan ETF to Market

<p> Offers Clients Potential Diversification Opportunities for Fixed Income Portfolios </p>

Thursday, April 04, 2013

SSgA Partners with GSO / Blackstone to Bring First Actively Managed Senior Loan ETF to Market

09:00 EDT Thursday, April 04, 2013

BOSTON (Business Wire) -- State Street Global Advisors (SSgA)*, the asset management arm of State Street Corporation (NYSE:STT), today announced that the SPDR Blackstone / GSO Senior Loan exchange traded fund (ETF) (Symbol:SRLN) began trading on the NYSE Arca on April 4, 2013. Developed by SSgA and GSO Capital Partners LP, the global credit business of The Blackstone Group L.P. (NYSE:BX), one of the world's largest alternative asset managers, the SPDR Blackstone / GSO Senior Loan ETF is the first actively managed ETF to provide exposure to senior loans.

“Given the high turnover of senior loans and the critical importance of credit selection, we believe an active strategy provides a key advantage to investors who want access to this corner of the market. Blackstone / GSO's rigorous approach and disciplined credit analysis made them an obvious choice to help us bring this product to clients and we are excited about the partnership,” said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at SSgA. “The SPDR Blackstone / GSO Senior Loan ETF is the latest example of our commitment to developing ETFs that democratize access to institutional asset classes, strategies and expertise.”

The ETF is designed to seek high current income, preserve capital, and outperform the Markit iBoxx USD Liquid Leveraged Loan Index and the S&P/LSTA U.S. Leveraged Loan 100 Index. Usually rated below investment grade, it is typical in the loan market to expect that 30 to 35 percent of loans will fall out of the index in any given year, so the ability to anticipate and react quickly to changes in the market through an active strategy is potentially advantageous.

“SSgA is a pioneer in the ETF market and we are pleased to join them in bringing the first actively managed senior loan ETF to investors,” said Lee Shaiman, managing director, The Blackstone Group. “Together we bring significant expertise to the asset class in a transparent and accessible product for all investors.”

Potential Benefits of SRLN

  • SRLN's expense ratio is .90 percent – significantly lower than the average expense ratio of senior loan mutual funds (A Shares: 1.11 percent, C Shares: 1.78 percent)
  • Access to GSO / Blackstone's senior loan portfolio management, a comprehensive investment process based on thorough due diligence and judgment and a seasoned team with a combined 20+ years of experience in leveraged finance
  • An investment strategy designed to generate higher risk adjusted returns while seeking to maintain capital preservation
  • The core advantages of the ETF structure, including transparency, intraday trading liquidity and no investment minimums

For more information about the SPDR Blackstone / GSO Senior Loan ETF, visit www.spdrs.com.

SSgA manages more than $340 billion** in SPDR ETF assets worldwide (as of December 31, 2012) and is one of the largest ETF providers globally.

About Blackstone

Blackstone is one of the world's leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-oriented funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. Follow us on Twitter @Blackstone.

About SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Bank and Trust Company. The funds provide professional investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as industry pioneer, State Street created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY). Since then, we've sustained our place as an industry innovator through the introduction of many ground-breaking products, including first-to-market launches with gold, international real estate, international fixed income and sector ETFs. For more information, visit www.spdrs.com.

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 world's leading providers of financial services to institutional investors.

*SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Bank & Trust Company.

**This AUM includes the assets of the SPDR Gold Trust (approx. $72.2 billion as of December 31, 2012), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent.

ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.

Investments in Senior Loans are subject to credit risk and general investment risk. Credit risk refers to the possibility that the borrower of a Senior Loan will be unable and/or unwilling to make timely interest payments and/or repay the principal on its obligation. Default in the payment of interest or principal on a Senior Loan will result in a reduction in the value of the Senior Loan and consequently a reduction in the value of the Portfolio's investments and a potential decrease in the net asset value ("NAV") of the Portfolio.

Investing in high yield fixed income securities, otherwise known as "junk bonds", is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income securities. These Lower-quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

Actively managed ETFs do not seek to replicate the performance of a specified index.

These investments may have difficulty in liquidating an investment position without taking a significant discount from current market value, which can be a significant problem with certain lightly traded securities.

The Fund is actively managed and may underperform its benchmarks. An investment in the fund is not appropriate for all investors and is not intended to be a complete investment program. Investing in the fund involves risks, including the risk that investors may receive little or no return on the investment or that investors may lose part or even all of the investment.

Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs. ALPS Distributors, Inc., a registered broker-dealer, is distributor for SPDR shares, MidCap SPDRs and Dow Jones Industrial Average, all unit investment trusts and Select Sector SPDRs.

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 1-866-787-2257 or visit www.spdrs.com . Read it carefully.

CORP-0707

State Street
Elizabeth Bartlett, +1 617 662 2903
www.statestreet.com
@StateStreet
or
River Communications
Troy Mayclim, +1 914 686 5599

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