BOSTON--(BUSINESS WIRE)--State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE:STT), announced that the SPDR DoubleLine Total Return Tactical ETF (Symbol: TOTL) began trading today on the NYSE Arca. Developed by SSGA and DoubleLine Capital, TOTL is the first actively managed ETF to offer investors access to DoubleLine’s investment research process. This core fixed income strategy seeks to maximize total return over a full market cycle by actively investing across global fixed income sectors.
“We are very excited about the partnership with DoubleLine and the launch of TOTL. We view this as a unique offering that pairs SPDR’s experience as an ETF pioneer with DoubleLine’s well-established investment talent,” said James Ross, executive vice president and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “TOTL is an option for investors who are focused on strengthening their core bond exposure through an actively managed, multi-sector strategy.”
The ETF will be managed by Jeffrey Gundlach, chief executive officer and chief investment officer of DoubleLine Capital, Philip Barach, DoubleLine president, and Jeffrey Sherman, portfolio manager and participant on the firm’s Fixed Income Asset Allocation Committee.
“DoubleLine is pleased to partner with SSGA, the pioneer of exchange traded funds,” Mr. Gundlach said. “DoubleLine was founded on the idea of striving to deliver better risk-adjusted returns across our different investment strategies. In TOTL, we will strive to maintain the fund's portfolio investments with a shorter duration than the Barclays US Aggregate Bond Index while seeking to generate a healthy yield. That combination is key to meeting the fund’s total return objective within a discipline of strong risk management.”
DoubleLine will actively manage TOTL through a top-down macroeconomic process, allocating capital among different fixed income sectors, with bottom-up security selection.
Select Characteristics of SPDR DoubleLine Total Return Tactical ETF (TOTL):
- Portfolio managers Gundlach, Barach and Sherman draw on decades of experience investing in fixed income. DoubleLine’s Fixed Income Asset Allocation Committee members have worked together for an average of 16 years and have more than 22 years average industry experience. DoubleLine oversees $64 billion in assets under management.1
- TOTL combines traditional fixed income investment sectors of the Barclays US Aggregate Bond Index and fixed income asset classes outside the index with the goal of maximizing total return over a full market cycle through active sector allocation and security selection.
- DoubleLine will strive to maintain TOTL's portfolio investments with a shorter duration than that of the Barclays US Aggregate Bond Index. Duration is a measure of the sensitivity of the price of a fixed income investment to a change in interest rates expressed as a number of years.
- TOTL has a net expense ratio of 0.55%2 and a gross expense ratio of 0.65%.3
- The ETF structure offers transparency, intraday trading liquidity and no investment minimums..
Click here for more information on the SPDR DoubleLine Total Return Tactical ETF.
About DoubleLine Capital
DoubleLine Capital LP, a registered investment adviser, serves as sub-advisor to the Fund. DoubleLine's headquarters is in Los Angeles, CA. Its offices can be reached by telephone at (213) 633-8200 or by e-mail at firstname.lastname@example.org. Media can reach DoubleLine by e-mail at email@example.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
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 investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as an industry pioneer, State Street created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY) and has remained on the forefront of responsible innovation, as evidenced by 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
For nearly four decades, State Street Global Advisors has been committed to helping our clients, and the millions who rely on them, achieve financial security. We partner with many of the world’s largest, most sophisticated investors and financial intermediaries to help them reach their goals through a rigorous, research-driven investment process spanning both indexing and active disciplines. With trillions* in assets, our scale and global reach offer clients unrivaled access to markets, geographies and asset classes, and allow us to deliver thoughtful insights and innovative solutions.
State Street Global Advisors is the investment management arm of State Street Corporation.
*Assets under management were $2.45 trillion as of December 31, 2014. This AUM total includes the assets of the SPDR Gold Trust (approx. $30.2 billion as of December 31, 2014), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent. Please note that AUM totals are unaudited.
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.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
The values of debt securities may decrease as a result of many factors, including, by way of example, general market fluctuations; increases in interest rates; actual or perceived inability or unwillingness of issuers, guarantors or liquidity providers to make scheduled principal or interest payments; illiquidity in debt securities markets; and prepayments of principal, which often must be reinvested in obligations paying interest at lower rates.
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.
Increase in real interest rates can cause the price of inflation-protected debt securities to decrease. Interest payments on inflation-protected debt securities can be unpredictable.
Investments in asset backed and mortgage backed securities are subject to prepayment risk which can limit the potential for gain during a declining interest rate environment and increases the potential for loss in a rising interest rate environment.
Government bonds and corporate bonds generally have more moderate short-term price fluctuations than stocks, but provide lower potential long-term returns.
Foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations, all of which may be magnified in emerging markets.
Actively managed funds do not seek to replicate the performance of a specified index. An actively managed fund may underperform its benchmark. 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.
Non-diversified funds that focus on a relatively small number of issuers tend to be more volatile than diversified funds and the market as a whole.
"SPDR" is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by State Street Corporation. Standard & Poor’s® and S&P® 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”); SPDR is a trademark of the SPDJI; and these trademarks have been licensed for use by 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 none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of SPDR.
DoubleLine is a registered trademark of DoubleLine Capital LP.
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. State Street Global Markets, LLC is the distributor for all registered products on behalf of the advisor. The advisor, SSgA Funds Management, Inc., has retained DoubleLine Capital LP as the sub-advisor.
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.
Not FDIC Insured * No Bank Guarantee * May Lose Value
1 As of December 31, 2014
2 SSGA Funds Management, Inc. (“SSGA FM” or “Adviser”) has contractually agreed to waive its advisory fee and/or reimburse certain expenses, until October 31, 2016, so that the net annual fund operating expenses of the Fund will be limited to 0.55% of the Fund’s average daily net assets before application of any extraordinary expenses or acquired fund fees and expenses. The contractual fee waiver and/or reimbursement does not provide for the recoupment by the Adviser of any fees the Adviser previously waived. The Adviser may continue the waiver and/or reimbursement from year to year, but there is no guarantee that the Adviser will do so and after October 31, 2016, the waiver and/ or reimbursement may be cancelled or modified at any time. This waiver and/or reimbursement may not be terminated during the relevant period except with the approval of the Fund’s Board of Trustees.
3 The gross expense ratio is the fund’s total annual operating expense ratio. It is gross of any fee waivers or expense reimbursements. It can be found in the fund’s most recent prospectus.