SSGA EUR Liquidity Fund
Marketing Communication
31 January 2017
Global Cash
Fund Facts
Fund Performance
Structure
OEIC - UCITS
Domicile
Ireland
Regulator
The Central Bank of
Ireland
Currency
EUR
Benchmark
EUR 7 Day Libid
Fitch Fund Rating
AAAmmf
Moody's Fund Rating
Aaa-mf
S&P Fund Rating
AAAm
Net Assets
€4,724,970,672
1 Month 3 Month
(%)
(%)
YTD
(%)
1 Year
(%)
2016
(%)
3 Year
(%)
5 Year
(%)
10 Year
(%)
Since Inception
(% p.a.)
Fund
-0.38
-0.37
-0.38
-0.29
-0.27
-0.04
0.05
1.14
1.90
Benchmark
-0.51
-0.51
-0.51
-0.50
-0.49
-0.27
-0.18
0.87
1.67
Source: SSGA/Bloomberg, 31 January 2017.
Yield figures are shown annualised and gross of fees.
Yield figures are shown for a stable NAV share class.
Past performance is not a guarantee of future results.
"3 Year" yield figures are shown for the three year period as of the previous year end.
"1 Year" figures are rolling yields.
The performance is calculated in Euro.
Benchmark returns are unmanaged and do not reflect the deduction of any fees or expenses.
Weighted Average Maturity 43
Weighted Average Life
44
Number of Holdings
129
Inception
17 July 2000
Net Asset Value
€1.00
Dealing Frequency
Daily
-0.2
Trading Deadline
1:00pm London
-0.4
Settlement Stable NAV
T+0
Settlement Accumulating
NAV
T+0
Fund Objective
The Fund seeks to maintain a high level of liquidity,
preserve capital and stability of principal expressed in
Euro and, consistent with those objectives, earn current
income and aims to provide a return in line with money
market rates.
Monthly Yield History
%
0.0
-0.6 Feb
16
Mar
16
Apr
16
May
16
Jul
16
Aug
16
Sep
16
Oct
16
Nov
16
Dec
16
Jan
17
SSGA EUR Liquidity Fund
EUR 7 Day Libid
Source: SSGA/Bloomberg, 31 January 2017.
Yield figures are shown annualised and gross of fees.
Past performance is not a guarantee of future results.
Maturity
2016
Investment Strategy
The Investment Manager combines a relative value
approach to investing with credit analysis to seek to identify
investments and issuers that it believes will provide the
greatest stability of capital and the highest probability
of repayment. As part of this process, the Investment
Manager uses in-depth research to identify sectors, issuers
and securities that it deems attractive for purchase in light
of the risks presented. Further, the Investment Manager
considers the liquidity of each investment and the overall
investment portfolio as an important factor in investment
decisions.
Jun
16
2017
Feb Mar
Apr May
Jun
Jul
Weighted Average Maturity (Days)
37
45
43
43
37
Weighted Average Life (Days)
38
46
43
43
37
Fund Composition
IMMFA Member
SSGA is a member of the Institutional Money Market
Funds Association (IMMFA), the trade association for AAArated European money market funds.
Aug Sep
Oct
Nov Dec
Jan
47
35
47
50
43
44
43
47
35
47
50
43
44
44
Credit Quality Distribution1
Commercial Paper - 33.33%
A-1+/P-1 - 30.24%
Certificates of Deposit - 23.02%
A-1/P-1 - 69.57%
Time Deposits - 12.42%
Asset Backed Commercial
Paper - 8.20%
A - 0.19%
Repurchase Agreement - 7.56%
Government Agency - 4.25%
Collateralised
Commercial Paper - 3.71%
Government Bill - 2.75%
Government Guaranteed - 2.61%
Corporate and Bank
Notes - 2.16%
1
Short-term ratings from S&P and Moody's are used. If no
short-term rating is available, the lower long-term rating is
used. S&P deems the investments rated 'A-1' maturing in
7 days or less equivalent to 'A-1+'. This document reflects
actual issue ratings.
Maturity Distribution
%
60
44.47%
45
30
22.17%
15
0
16.11%
10.85%
5.87%
Overnight
2-7
Days
0.53%
8 - 30
Days
31 - 90
Days
91-180
Days
Source: SSGA Ltd - Legal Maturity, 31 January 2017.
Please note the overnight and 2-7 day maturity buckets do not include all government agency securities.
Fund composition, Quality and Maturity distribution are as of the date indicated, are subject to change,
and should not be relied upon as current thereafter.
180-397
Days
State Street Global Advisors
SSGA EUR Liquidity Fund
31 January 2017
Investment Commentary
For more information, please contact:
As expected, the European Central Bank (ECB) left policy rates unchanged at January’s meeting of the Governing
Council. The main refinancing rate remains at 0.00%, the deposit facility rate at -0.40% and the marginal lending rate
at 0.25%. ECB President Mario Draghi’s post-meeting press conference was dovish; he managed to reassure the
markets that the ECB would maintain its accommodative stance consistent with slow, rising core inflation rather than
react to the recent high inflation numbers. Reiterating the ECB’s stance on inflation, Draghi noted that price increases
must be likely to hit their target over the medium term; they should be durable and not transient; inflation must be
self-sustained once the extraordinary level of monetary support is removed; and the focus should be on inflation in the
eurozone as a whole rather than any individual country.
December’s Governing Council minutes revealed that there had been broad agreement to extend the asset purchase
programme beyond March 2017. Chief Economist Peter Praet had presented two options to the Governing Council:
€80 billion of monthly purchases for six months or €60 billion for nine months. Policymakers saw reducing the pace to
€60 billion per month as “in line with the Governing Council’s reassessment of the balance of risks” and “consistent
with a gradually firming pace of the recovery”. They also opined that it would provide a “confidence signal” as well as
continued support and would ease pressures on market liquidity. Keeping the pace of monthly purchases at €80 billion
per month would have had been more in line with market expectations but the Council argued that it was associated
with deflation risks in early 2016, which had “largely disappeared”.
EMEA Cash Client Service
+44 (0)20 3395 2333
[email protected]
Visit our website at www.ssga.com/cash or contact
your local SSGA office.
SSGA Belgium
+32 (0) 2 663 2016
SSGA Germany
+49 (0) 69 66 77 45 016
SSGA Ireland
+353 1 776 3036
The eurozone recovery continues to pick up despite December’s Italian referendum and other geopolitical risks and
uncertainty ahead. Fourth-quarter GDP accelerated to 0.5% quarter on quarter, up from 0.4% in the third quarter and
0.3% in the second. The year-on-year rate remained stable at 1.8%. These growth figures were in line with
expectations and are consistent with the pick-up observed in surveys at the end of last year. January’s survey data
indicated buoyant growth at the start of 2017. Further signalling diminishing spare capacity, the eurozone
unemployment rate fell to 9.6% in December, its lowest level since 2009, from a downwardly revised 9.7% in
November.
SSGA Italy
Headline inflation in the eurozone surged to a four-year high of 1.8% in January, raising concerns about whether the
ECB has been too cautious. The rate increased from 1.1% in December, and is well above consensus expectations of a
1.5% rise, mainly because of large base effects and recent gains in energy prices. Fresh food inflation also rose
substantially in January, likely reflecting adverse weather conditions in some crop-producing European countries.
Core inflation (excluding food, energy and tobacco) was stable at 2016’s average of 0.9%. Market expectations are for
headline inflation to move higher in the next three months, to around 2%, and to remain slightly below that for the
rest of the year. Core inflation is expected to remain much more subdued but is likely to start to creep higher as spare
capacity narrows and the effects of past euro appreciation start to fade.
+31 (0) 20 718 1701
After averaging -0.352% in December, EONIA (the Euro Overnight Index Average) closed January at -0.345%. Excess
liquidity continued to rise, reaching a historical high of €1.279 trillion by 12 January and closing the month at €1.259
trillion. Libor fixings moved one to two basis points lower: three-month Euribor averaged -0.326% compared to
-0.316% in December; six-month Euribor averaged -0.236 compared to -0.218% in December, and one-year Euribor
averaged -0.095 compared to -0.08% in December, with a historical low of -0.102% on 26 January. As we entered the
new year, money markets saw some brisk issuance across all the sectors, in various currencies and tenor combinations.
Overnight repo and cash markets normalised following the year-end’s wide pricing. We maintained our sovereign and
government agency paper holdings to manage liquidity, adding top-tier corporate entities and financials where
liquidity and fund limits allowed. The fund’s weighted average maturity increased to the 45-50 days range, with a wellladdered portfolio of diversified assets at all times.
This is a marketing document for informational
purposes only. We recommend you read the Key Investor
Information Document/Prospectus and supplement for
full details about the Fund, including fees and risks.
Our Client Relationship team will also be pleased to
provide you with further information about this Fund.
+39 02 3206 6130
SSGA Middle East & North Africa
+971 (0) 4 437 2800
SSGA Netherlands
SSGA Switzerland
+41 (0) 44 245 7099
SSGA United Kingdom
+44 (0) 20 3395 2333
Please note that full details of underlying fund holdings
can be found on www.ssga.com/cash.
Investing involves risk including the risk of loss of
principal.
The views expressed in this material are the views of Alison Scott through the period ended at the date above and are subject to change based on market and other conditions. Please note that any such statements
are not guarantees of any future performance and actual results or developments may differ materially from those projected.
Belgium: State Street Global Advisors Belgium, Chausse de La Hulpe 120, 1000 Brussels, Belgium. Telephone: 32 2 663 2036, Facsimile: 32 2 672 2077. SSgA Belgium is a branch office of State Street Global Advisors
Limited. State Street Global Advisors Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Dubai: State Street Bank and Trust Company (Representative Office), Boulevard
Plaza 1, 17th Floor, Office 1703 Near Dubai Mall & Burj Khalifa, P.O Box 26838, Dubai, United Arab Emirates. Telephone: 971 (0)4-4372800, Facsimile: 971 (0)4-4372818. France: State Street Global Advisors France.
Authorised and regulated by the Autorité des Marchés Financiers. Registered with the Register of Commerce and Companies of Nanterre under the number 412 052 680. Registered office: Immeuble Défense Plaza, 23-25
rue Delarivière-Lefoullon, 92064 Paris La Défense Cedex, France. Telephone: ( 33) 1 44 45 40 00. Facsimile: ( 33) 1 44 45 41 92. Germany: State Street Global Advisors GmbH, Brienner Strasse 59, D-80333 Munich.
Authorised and regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (“BaFin”). Registered with the Register of Commerce Munich HRB 121381. Telephone +49 (0)89-55878-400. Facsimile +49
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Registered number 145221. Member of the Irish Association of Investment Managers. T: +353 (0)1 776 3000. F: +353 (0)1 776 3300. Italy: State Street Global Advisors Limited, Milan Branch (Sede Secondaria di Milano)
is a branch of State Street Global Advisors Limited, a company registered in the UK, authorised and regulated by the Financial Conduct Authority (FCA ), with a capital of GBP
71'650'000.00, and whose registered office is at 20 Churchill Place, London E14 5HJ. State Street Global Advisors Limited, Milan Branch (Sede Secondaria di Milano), is registered in Italy with company number
06353340968 - R.E.A. 1887090 and VAT number 06353340968 and whose office is at Via dei Bossi, 4 - 20121 Milano, Italy Telephone: 39 02 32066 100 Facsimile: 39 02 32066 155. Netherlands: State Street Global Advisors
Netherlands, Apollo Building, 7th floor Herikerbergweg 29 1101 CN Amsterdam Amsterdam, Netherlands. Telephone: 31 20 7181701. SSGA Netherlands is a branch office of State Street Global Advisors Limited. State
Street Global Advisors Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Switzerland: State Street Global Advisors AG, Beethovenstr. 19, CH-8027 Zurich. Authorised and
regulated by the Eidgenössische Finanzmarktaufsicht (“FINMA”). Registered with the Register of Commerce Zurich CHE-105.078.458. Telephone +41 (0)44 245 70 00. Facsimile Fax: +41 (0)44 245 70 16.
www.ssga.com.United Kingdom: State Street Global Advisors Limited. Authorised and regulated by the Financial Conduct Authority. Registered in England. Registered No. 2509928. VAT No. 5776591 81. Registered
office: 20 Churchill Place, Canary Wharf, London, E14 5HJ. Telephone: 020 3395 6000. Facsimile: 020 3395 6350. Web: www.ssga.com
The information provided does not constitute investment advice as such term is defined under the Markets in Financial Instruments Directive (2004/39/EC) and it should not be relied on as such. It should not be
considered a solicitation to buy or an offer to sell any investment. It does not take into account any investor's or potential investor's particular investment objectives, strategies, tax status, risk appetite or investment
horizon. If you require investment advice you should consult your tax and financial or other professional advisor. All material has been obtained from sources believed to be reliable. There is no representation or warranty
as to the accuracy of the information and State Street shall have no liability for decisions based on such information.
Although a money market fund seeks to preserve the value of your investment at 1.00 Stable NAV unit per share, it is possible to lose money by investing in a money market fund. The funds are not available to US
investors. This document is issued in the UK by State Street Global Advisors Limited, 20 Churchill Place, Canary Wharf, London, E14 5HJ.
State Street Global Advisors Liquidity Public Limited Company ("the Company") is an umbrella type investment company with variable capital having segregated liability between its sub-funds. The Company is organised
as an Undertaking for Collective Investment in Transferable Securities (UCITS) under the laws of Ireland and authorised as a UCITS by the Central Bank of Ireland. The Company is a recognised scheme under Section
264 of the Financial Services and Markets Act 2000 ("the Act") and is directed at 'professional clients' in the UK (within the meaning of the rules of the Act) who are deemed both knowledgeable and experienced in matters
relating to investments. The products and services to which this communication relates are only available to such persons and persons of any other description should not rely on this communication. Many of the
protections provided by the UK regulatory system do not apply to the operation of the Company, and compensation will not be available under the UK Financial Services Compensation Scheme. 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.
The information contained in this communication is not a research recommendation or ‘investment research’ and is classified as a ‘Marketing Communication’ in accordance with the European Communities
(Markets in Financial Instruments) Regulations 2007. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of
investment research is not subject to any prohibition on dealing ahead of the dissemination of investment research.
This document should be read in conjunction with its prospectus and or the relevant Key Investor Information Document. All transactions should be based on the latest available Key Investor Information
Document/Prospectus which contains more information regarding the charges, expenses and risks involved in your investment.
This communication is directed at professional clients (this includes Eligible Counterparties as defined by the Appropriate EU Regulator) who are deemed both Knowledgeable and Experienced in matters relating to
investments. The products and services to which this communication relates are only available to such persons and persons of any other description (including Retail Clients) should not rely on this communication. The
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For Investors in Switzerland The collective investment scheme referred to herein is a collective investment scheme under Irish law. Prospective investors may obtain the current sales prospectus, the articles of
incorporation, the simplified prospectuses as well as the latest annual and semi-annual report free of charge from the Swiss Representative and Paying agent, State Street Bank GmbH Munich, Zurich Branch,
Beethovenstrasse 19, 8027 Zurich as well as from the main distributor in Switzerland, State Street Global Advisors AG, Beethovenstrasse 19, 8027 Zurich. Before investing please read the prospectus and the KIID, copies of
which can be obtained from the Swiss representative, or at www.SSGA.com or at www.ssga.com/cash
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EUMKT- 5162 Expiration Date: 30/04/2017