NZAC | SPDR MSCI ACWI Climate Paris Aligned ETF

NZAC ISSUER

The NZAC issuer, managed by State Street Global Advisors (SSGA), utilizes a sampling strategy to mirror the performance of the MSCI ACWI Climate Paris Aligned Index. This strategy allows flexibility in selecting securities, aiming to maintain similar risk and return characteristics to the Index while considering factors such as asset size. SSGA FM, the investment adviser, may invest in a subset of Index securities or replicate the Index's composition proportionately, ensuring alignment with the Fund's objectives. While the Fund is classified as diversified, it may transition to non-diversified status due to Index tracking, potentially concentrating assets in a limited number of issuers. With a focus on climate alignment, the Fund predominantly invests in securities from the Index and may include additional equity securities, cash equivalents, or money market instruments. The Index, designed to meet Paris Agreement goals, screens out companies based on exclusionary criteria related to controversial activities, such as weapons production and tobacco. SSGA applies an optimization process to construct the final portfolio, emphasizing reduced climate risks and exposure to sustainable investment opportunities. Rebalancing semi-annually, the Fund as of November 30, 2023, exhibited a notable presence in the technology sector across various countries, including the United States. Supported by MSCI as the Index Provider, the NZAC issuer's approach reflects a commitment to climate-conscious investing while seeking to achieve financial objectives.

NZAC DIVIDEND

The NZAC dividend policy is designed to provide investors with a regular income stream while maintaining the fund's investment objectives. State Street Global Advisors (SSGA) aims to distribute dividends to shareholders periodically, typically from the income generated by the securities held within the fund's portfolio. As the NZAC issuer tracks the performance of the MSCI ACWI Climate Paris Aligned Index, dividend distributions may reflect the dividends received from the underlying index constituents. SSGA endeavors to manage the dividend payout in alignment with market conditions and the fund's investment strategy, seeking to provide investors with a stable and potentially growing income stream over time. Investors can expect dividend payments from the NZAC issuer as a component of their investment returns, contributing to the fund's overall appeal for income-oriented investors.

NZAC TRACKING

The tracking performance of the NZAC issuer, managed by State Street Global Advisors (SSGA), aims to closely replicate the MSCI ACWI Climate Paris Aligned Index. Utilizing a sampling strategy, the fund may not hold all securities within the index but selects a subset to mirror its risk and return characteristics. SSGA FM, the investment adviser, employs rigorous analysis to determine the optimal approach, considering factors such as asset size and market conditions. The fund's objective is to track the index's performance as accurately as possible, minimizing tracking error and ensuring alignment with investor expectations. Through periodic rebalancing and adjustments, SSGA strives to maintain a high level of correlation between the fund's returns and those of the underlying index, providing investors with a reliable means to access global equity markets with a focus on climate-conscious investing.

NZAC CORRELATION

The NZAC issuer, under the management of State Street Global Advisors (SSGA), aims to maintain a strong correlation with the MSCI ACWI Climate Paris Aligned Index. This correlation reflects the fund's commitment to tracking the index's performance closely, ensuring that investors experience movements in the fund's value that align with those of the underlying index. SSGA employs sophisticated methodologies and analysis to manage correlation risk, seeking to minimize deviations between the fund's returns and those of the index. By closely monitoring market dynamics and adjusting the fund's holdings as needed, SSGA endeavors to sustain a high level of correlation over time, providing investors with confidence in the fund's ability to deliver results consistent with the benchmark index.

NZAC SECTOR

The NZAC issuer, overseen by State Street Global Advisors (SSGA), maintains exposure to various sectors as part of its investment strategy. With a focus on tracking the MSCI ACWI Climate Paris Aligned Index, the fund's sector allocation may evolve over time based on market conditions and index composition. SSGA employs rigorous analysis to ensure that the fund's sector exposure aligns with the index's sector weightings, aiming to capture broad market trends while adhering to the fund's investment objectives. By diversifying across sectors, the NZAC issuer seeks to manage risk and capitalize on opportunities presented by different industries, providing investors with a balanced portfolio that reflects the global equity landscape through a climate-conscious lens.

NZAC EXPOSURE

The NZAC issuer, managed by State Street Global Advisors (SSGA), offers investors exposure to a diversified portfolio of securities that mirrors the MSCI ACWI Climate Paris Aligned Index. This exposure encompasses a wide range of companies across developed and emerging markets, providing access to global equity opportunities while focusing on climate-conscious investing. SSGA employs a sampling strategy to replicate the index's performance, carefully selecting securities that collectively represent the risk and return characteristics of the broader market. Through this approach, the NZAC issuer seeks to provide investors with a transparent and efficient means of gaining exposure to a broad array of companies while aligning with their environmental and sustainability objectives.