State Street Global Advisors (STT) Announces Distribution Breakdown Associated with Financial Select Sector SPDR (XLF) Modification

September 19, 2016 10:07 AM EDT

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State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE: STT), announced the expected distribution breakdown of the special dividend associated with the upcoming modifications to the index constituents of the Financial Select Sector Index (Financial Sector Index), and the Financial Select Sector SPDR Fund (XLF).

As announced in June, in order to facilitate an efficient transition to the reconstituted Financial Sector Index, XLF has sought to obtain its real estate exposure in shares of The Real Estate Select Sector SPDR Fund (XLRE) in advance of the Financial Select Sector Index reconstitution. XLRE seeks to track the Real Estate Select Sector Index. For a full listing of companies in the Real Estate Select Sector Index, please click here.

Upon the completion of the changes to the Financial Select Sector Index, on September 16, XLF will issue a special dividend to its shareholders. The special dividend will be comprised of shares of XLRE.

The distribution for the special dividend is 0.139146 shares of XLRE or $4.44356 per share of XLF as of September 16, 2016. The dividend distribution will be characterized as both return of capital and income for tax purposes. As of September 16, 2016, the approximate percentage of the dividend that will be treated as return of capital is 74%, and the remaining 26% will be taxed as ordinary income. The amounts and sources of distributions reported are estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on the tax regulations. U.S. Shareholders will receive a form 1099-DIV in early 2017 that will inform them how to report distributions for federal income tax purposes. Important dates for this special dividend are as follows:

Declaration Date: September 16, 2016

Ex-Date: September 19, 2016

Record Date: September 21, 2016

Pay Date: September 22, 2016

Effective on the date of index reconstitution, the Financial Select Sector Index will include securities of companies from the following industries: diversified financial services, insurance, banks, capital markets, consumer finance, thrifts and mortgage finance, and mortgage real estate investment trusts (REITs). The Real Estate Select Sector Index includes real estate management, development and REITs, with the exception of mortgage REITs.

SSGA’s leading suite of US-listed select sector SPDR ETFs includes 11 funds with $ 94.3 billion in assets as of August 31, 20161.

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