What is the Manager’s best execution policy?

The Manager and its affiliates under States Street Investment Management ("State Street IM") duty of best execution requires that we take reasonable steps to obtain as favourable an overall result as possible for our client transactions under the circumstances, taking into account various factors that are relevant to the particular transaction. This includes, but is not limited to, price, cost, speed of execution, likelihood of execution, likelihood of settlement, the nature of the transaction, market liquidity, local laws and regulations, potential market impact and size of the transaction. In considering these best execution factors, State Street IM takes into account the particular characteristics of the order, the characteristics of the financial instrument, and the available execution venues and counterparties. While price is an important consideration, State Street IM's duty of best execution does not imply a duty to always obtain the best price available at the time of the transaction. 

The ability of State Street IM to achieve best execution at the time of a transaction is limited by, among other things, the limitations set forth in a client’s contractual arrangement with State Street IM (including a trust deed) and/or a counterparty, any restrictions or explicit directions imposed by the client as to the panel of counterparties with which State Street IM may transact with respect to the client’s account, the amount of available credit the client may have with counterparties, and any other specific instructions delivered by the client to State Street IM. These factors can be viewed in terms either of the particular transaction or in terms of State Street IM’s overall responsibilities with respect to the accounts for which it exercises investment discretion and has the authority to select counterparties. State Street IM selects the counterparty for each transaction after considering price or spread and other qualitative criteria. However, the client, and not State Street IM, bears any credit and operating exposure to a counterparty.