Form 497 SELECT SECTOR SPDR TRUST
Important Notice Regarding Change in Investment Policy
THE SELECT SECTOR SPDR® TRUST
The Financial Select Sector SPDR® Fund
The Real Estate Select Sector SPDR® Fund
Supplement dated June 8, 2016 to the Prospectus dated January 31, 2016 and the
Statement of Additional Information (the SAI) dated January 31, 2016, as revised March 24, 2016
Effective in mid-September 2016 (the Rebalance Date), the Financial Select Sector Index (the Index), the underlying index for The Financial Select Sector SPDR Fund (XLF), will be reconstituted by eliminating the stocks of companies involved in the real estate industry (including real estate investment trusts (REITs) other than mortgage REITs) (Real Estate Stocks). In order for XLF to effectuate a corresponding change to its portfolio, in early September 2016, XLF intends to transfer Real Estate Stocks to The Real Estate Select Sector SPDR Fund (XLRE) in exchange for shares of XLRE. On or about the Rebalance Date, XLF intends to make an in-kind distribution of the XLRE shares to shareholders of XLF such that, following the distribution, XLF will continue to hold stocks included in the reconstituted Index in accordance with its principal investment strategy.
Operating fees and expenses for XLRE will be waived from the date of this supplement through and including the Rebalance Date, such that XLRE will have an expense ratio of zero during that time period.
Accordingly, the following changes are made to the Prospectus and SAI effective August 8, 2016 through and including the date of the in-kind distribution. Following that date, these changes will be reversed.
1. | The first sentence of the second paragraph under The Funds Principal Investment Strategy on page 21 of the Prospectus is deleted and replaced with the following: |
Under normal market conditions, the Fund generally invests substantially all, but at least 95%, of its total assets in the securities comprising the Index, either directly or through investment in The Real Estate Select Sector SPDR Fund.
2. | On page 14 of the SAI, the third non-fundamental policy is deleted and replaced with the following, in each case solely with respect to XLF: |
XLF will, under normal circumstances, invest at least 95% of its total assets in common stocks that compose its relevant Select Sector Index, either directly or through investment in The Real Estate Select Sector SPDR Fund. Prior to any change in the Funds 95% investment policy, the Fund will provide shareholders with at least 60 days written notice.
The following change is made to the SAI effective as of June 30, 2016, and is effective through September 23, 2016:
1. | On page 14 of the SAI, the non-fundamental policy relating to investment in securities issued by other investment companies (the fourth non-fundamental policy) shall not apply to XLF. |
Furthermore, effective June 30, 2016, shares of XLF will not be eligible for further acquisition in excess of the Section 12(d)(1)(A) limits of the Investment Company Act of 1940 under any investing fund agreements with The Select Sector SPDR Trust. Shares of XLF will once again be eligible to be acquired in excess of the Section 12(d)(1)(A) limits of the Investment Company Act of 1940 pursuant to investing fund agreements on or about September 23, 2016.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
SELECTSECTORSUPP1
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- KraneShares China Internet & Covered Call ETF (Ticker: KLIP) Announces March Distribution, Delivering A Current Distribution Rate of 49.79%
- KBRA Releases Research - CMBS Loan Performance Trends: March 2024
- Blueground Raises $45 Million Series D to Lead the Market for Furnished, Flexible Rentals for 30+ Day Stays
Create E-mail Alert Related Categories
SEC FilingsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!