The Sustainable Finance Disclosure Regulation (“SFDR”), introduced by the European Union, aims to improve transparency in terms of environmental, social and governance (“ESG”) disclosures to help investors make informed decisions when they seek to invest in financial products that support sustainability. The SFDR mandates asset managers to classify their funds under Article 6, 8 or 9 based on ESG and other sustainable characteristics incorporated into those funds.
As of 5 September 2023 (the “Effective Date”) a subset of the funds (“Funds”) in the State Street Liquidity PLC fund range will amend their investment policy to introduce environmental and social characteristics into the investment process and as a result the Funds will be reclassified from Article 6 to Article 8 under SFDR. The impacted Funds are:
The SFDR came into effect in March 2021 with the aim of providing greater transparency to investors as to the degree of sustainability incorporated into financial products.
The regulation requires EU fund providers to disclose sustainability information in their pre-contractual disclosures and periodic reports regarding the extent to which ESG factors are considered in their investment process.
Article 6 requires funds to disclose whether a fund integrates sustainability risks into its investment decision-making process. Article 8 funds are those that promote, among others, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices. Article 9 funds are those that have a sustainable investment objective, while considering good governance and “do no significant harm” principles of investee companies.
The Funds will continue to have a primary objective of principal preservation and liquidity while generating a market rate of return. While pursuing the Funds’ primary objectives, the portfolio managers will adopt a positive tilting approach to ESG considerations by seeking to invest the majority of the Fund’s portfolio in Sustainable Investments as defined under the SFDR.
In addition, the Funds will screen out securities that breach international norms set by UN Global Compact Principles in relation to environmental protection, human rights, labour standards, anti-corruption and controversial weapons as well as issuers involved in thermal coal, arctic drilling, oil and tar sands and severe ESG controversies.
Notably, as mentioned earlier, the overarching strategy will continue to adhere to UCITS MMFR requirements of principal preservation and liquidity as well as the relevant rating agency requirements, where applicable, to the Funds.
The investment objectives of the Funds will be unchanged. The relevant Fund supplements have been updated to reflect the following changes and will be available on ssga.com/cash from the Effective Date:
As mentioned earlier, the following exclusions will be applied to the investment universe prior to the construction of the portfolio:
There are no other changes planned at this time.
State Street Global Advisors defines a Sustainable Investment under the SFDR as a security that is classified as a leader or outperformer according to State Street Global Advisors’ proprietary assessment methodology that measures the performance of an issuer’s business operations and governance as it relates to financially material ESG challenges facing the issuer’s industry.
The relevant pre-contractual disclosures and supporting information for the Funds will be available on ssga.com/cash from the Effective Date.
Please do not hesitate to reach out to your State Street representative with any questions.
Belgium: State Street Global Advisors Belgium, Chaussée de La Hulpe 185, 1170 Brussels, Belgium. T: +32 2 663 2036. State Street Global Advisors Belgium is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson’s Quay, Dublin 2. Germany: State Street Global Advisors Europe Limited, Branch in Germany, Brienner Strasse 59, D-80333 Munich, Germany (“State Street Global Advisors Germany”). T +49 (0)89 55878 400. State Street Global Advisors Germany is a branch of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson’s Quay, Dublin 2. Ireland: State Street Global Advisors Europe Limited is regulated by the Central Bank of Ireland. Registered office address 78 Sir John Rogerson’s Quay, Dublin 2. Registered Number: 49934. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. Netherlands: State Street Global Advisors Netherlands, Apollo Building 7th floor, Herikerbergweg 29, 1101 CN Amsterdam, Netherlands. T: +31 20 7181 000. State Street Global Advisors Netherlands is a branch office of State Street Global Advisors Europe Limited, registered in Ireland with company number 49934, authorised and regulated by the Central Bank of Ireland, and whose registered office is at 78 Sir John Rogerson’s Quay, Dublin 2. Switzerland: State Street Global Advisors AG, Beethovenstr. 19, CH-8027 Zurich. Registered with the Register of Commerce Zurich CHE-105.078.458. T: +41 (0)44 245 70 00. F: +41 (0)44 245 70 16. United Kingdom: State Street Global Advisors Limited. Authorised and regulated by the Financial Conduct Authority. Registered in England. Registered No. 2509928. VAT No. 5776591 81. Registered office: 20 Churchill Place, Canary Wharf, London, E14 5HJ. T: 020 3395 6000. F: 020 3395 6350. ssga.com.
Investing involves risk including the risk of loss of principal.
Such activities may not be suitable for everyone.
Past performance is not a reliable indicator of future performance.
Diversification does not ensure a profit or guarantee against loss.
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.
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 above targets are estimates based on certain assumptions and analysis. There is no guarantee that the estimates will be achieved.
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. 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.
This communication is directed at professional clients (this includes eligible counterparties as defined by the appropriate EU regulator or applicable Swiss 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.
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.
Please refer to the Fund’s latest Key Investor Information Document and Prospectus before making any final investment decision. The latest English version of the prospectus and the 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.
For Investors in UK: The Company has been registered for distribution in the UK pursuant to the UK’s temporary permissions regime under regulation 62 of the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019. The Company is directed at ‘professional clients’ in the UK (within the meaning of the rules of the Financial Services and Markets Act 2000) 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 should not rely on this communication. Many of the protections provided by the UK regulatory system do not apply to the operation of the Company, and compensation will not be available under the UK Financial Services Compensation Scheme.
For Investors in Switzerland: The collective investment scheme referred to herein is a collective investment scheme under Irish Law. Prospective investors may obtain the current sales prospectus, the articles of incorporation, the simplified prospectuses as well as the latest annual and semi-annual report free of charge from the Swiss Representative and Paying agent, State Street Bank GmbH Munich, Zurich Branch, Beethovenstrasse 19, 8027 Zurich as well as from the main distributor in Switzerland, State Street Global Advisors AG, Beethovenstrasse 19, 8027 Zurich. Before investing please read the prospectus and the KID, copies of which can be obtained from the Swiss representative, or at ssga.com. Actively managed funds do not seek to replicate the performance of a specified index
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Exp. Date: 30/08/2024