the S&P MILA 40 Index. The S&P MILA 40 is designed to provide exposure to the largest and most liquid stocks trading on the Mercado Integrado Latino Americano (MILA) platform, an integrated trading venture formed by the Chile, Colombia and Perú stock exchanges. The S&P MILA 40 is a unique index designed to provide investors with an easily replicable snapshot of investable MILA, comprised of liquid, tradable securities. They did not specify a trading symbol or expense ratio in the initial filing.
THE FUND’S PRINCIPAL INVESTMENT STRATEGY
In seeking to track the performance of the S&P MILA 40 Index (the “Index”), the Fund employs a sampling strategy, which means that the Fund is not required to purchase all of the securities represented in the Index. Instead, the Fund may purchase a subset of the securities in the Index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Index. The quantity of holdings in the Fund will be based on a number of factors, including asset size of the Fund. SSgA Funds Management, Inc. (“SSgA FM” or the “Adviser”), the investment adviser to the Fund, generally expects the Fund to hold less than the total number of securities in the Index, but reserves the right to hold as many securities as it believes necessary to achieve the Fund’s investment objective.
Under normal market conditions, the Fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the Index or in American Depositary Receipts (“ADRs”) or Global Depositary Receipts (“GDRs”) based on securities comprising the Index. The Fund will provide shareholders with at least 60 days notice prior to any material change in this 80% investment policy. In addition, the Fund may invest in equity securities that are not included in the Index, cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by SSgA Funds Management, Inc. (“SSgA FM” or the “Adviser”)). The Fund may also enter into forward currency exchange contracts for hedging purposes.
The Index is designed to provide exposure to the largest and most liquid stocks trading on the Mercado Integrado Latino Americano (MILA) platform, an integrated trading venture formed by various Latin American exchanges. The Index is a rules-based index that seeks to provide investors with an easily replicable benchmark representing these markets, consisting of the largest 40 eligible stocks based on float-adjusted market capitalization. To be included in the Index, stocks must have a float adjusted market capitalization above US $100 million as of the rebalancing reference date. Constituents must have three-month average daily value traded (ADVT) in their local markets above US$ 250,000 as of the rebalancing reference date. All common, investable and preferred Shares (which are of an equity and not of a fixed income nature) are eligible for inclusion. Convertible stock, bonds, warrants, rights, and preferred stock that provide a guaranteed fixed return are not eligible. The index is rebalanced semiannually. As of , 2012, the Index was comprised of 40 securities.
The Index is sponsored by Standard & Poor’s Financial Services LLC (the “Index Provider”) which is not affiliated with the Fund or the Adviser. The Index Provider determines the composition of the Index, relative weightings of the securities in the Index and publishes information regarding the market value of the Index.
For the complete filing click: HERE