sate street global advisors

Not “Why” ETFs but “How”Investment Ideas with Exchange Traded Funds

Citywire Montreux, May 9-11th, 2012

Content

How Investors are Using ETFs

Deep Dive: ETFs as an Access Tool – Local Currency Bonds

SPDR ETFs

Appendix

Overview of the ETF Industry

2

4,881 ETPs and $1.7 Trillion in Assets

The Americas EMEA Asia Pacific

Source: Markit, SSgA ETF Strategy & Consulting, as of March 31, 2012.

# of ETPs

ETP Assets (US$ B)

Canada 308 $47.5

USA 1,443 $1,209.7

Latin America 27 $13.1

Total 1,778 $1,270.3

# of ETPs

ETP Assets (US$ B)

Europe 2,325 $335.4

Middle East and Africa 329 $31.7

Total 2,654 $367.1

# of ETPs

ETP Assets

(US$ B)

Asia ex- Japan 338 $49.3

Japan 111 $37.2

Total 449 $86.5

CMIBG-0226

The Global ETP Market

3

Asset Diversification in Europe and the US

FixedIncome

$184.78bn

Equity

$843.09bnEUROPE US

Source: SSgA ETF Strategy & Consulting, Morningstar, as of March 2012. 4

European ETF Growth

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-10010030050070090011001300150017001900210023002500

Assets Funds

Ass

ets

in B

illion

s

Num

ber o

f ETF

s

Source: Bloomberg, SSgA Global ETF Strategy & Research, as of 31 December 2011.5

Motivations for Investing in ETFs

GLSTND-0325

Source: Citywire and SPDR ETFs Exchange Traded Funds Research 2011. 186 Global Fund Selector responses, November 2011. N.B Score is a weighted calculation. Items ranked first are valued higher than the following ranks, the score is the sum of all weighted rank counts.

6

Satisfaction with ETFs or ETF-like products over time

GLSTND-0325

Source: The EDHEC European ETF Survey 2011. This exhibit indicates the percentages of respondents that are satisfied with ETFs or ETF-like products for different asset classes over time. The percentages are based on the results of the EDHEC ETF survey 2006, 2008 to 2011.

7

1st Quarter 2012 European ETF Flows (USD millions)

Asset Class Emerging vs. Developed

Source: Markit, as of 31 March 2012. 8

Content



SPDR ETFs

Appendix


9

Role of ETFs

Source: The EDHEC European ETF Survey 2011. This exhibit indicates the frequency of respondents using ETFs for each of the mentioned purposes. Respondents were asked to rate the frequency from 1 to 6. The “frequent” category would include ratings from 4 to 6 and “Rarely” would take into account ratings from 1 to 3 and non-responses.

GLSTND-0325

How often do you use ETFs for the following purposes?

10

Role of ETFs in Asset Allocation

Do you use ETFs as?

Source: Citywire and SPDR ETFs Exchange Traded Funds Research 2011. 255 Global Fund Selector responses, November 2011.

GLSTND-0325

11

How can ETFs be used?

There are a number of ways an institutional investor can benefit from using ETFs

Application Objective ETF Solution

Strategic Asset Allocation Make a long term asset allocation based on prevailing economic forecasts and outlook.

ETFs allow you to easily implement these views across asset classes as well as from a sector and style perspective.

Tactical Asset Allocation Over or underweight certain market segments based on short term outlook.

The intraday liquidity and precise exposures of ETFs offer investors an efficient vehicle by which to implement a short term outlook.

Rebalancing Increase the speed and efficiency of rebalancing across the asset allocation.

ETFs can make rebalancing more efficient than moving assets from illiquid managers.

Liquidity Management Increase liquidity in overall asset allocation without changing allocation.

Use ETFs for a given percentage of each asset class to provide a liquidity buffer across the asset allocation.

Cash Equitisation Remain fully invested while maintaining liquidity. ETFs are an attractive alternative solution to futures due to the product variety, transparency, easier documentation, reduced operational errors, and elimination of roll risk.

Transitions Maintain market exposure while searching for a new manager.

Invest proceeds of a manager liquidation in an ETF until new manager has been selected.

Portfolio Completion Fill any asset allocation holes quickly and easily. Using ETF to gain exposure to an asset class that is underrepresented in the asset allocation.

12

How Institutions Buy and Sell ETFs

The majority of ETF trades take place in the secondary market on exchanges, other markets, or through OTC transactions with liquidity providers.

• Buyers and sellers are matched through an exchange

• The secondary market may be a limited portion of an ETF’s overall liquidity

• Common trades:

– Market Orders

– Limit Orders

– Stop Loss Orders

– MOC

– VWAP, TWAP

• Liquidity providers are able to provide greater liquidity than the secondary market

• Liquidity providers can transact in the underlying securities as well as other offsetting hedges such as futures, options, highly correlated ETFs, etc

• Common trades:

– Risk Trades

– Spread to NAV Orders

– Underlying VWAP Orders

– Overnight underlying VWAP orders

• Authorized Participants can also create or redeem shares

• APs deliver the corresponding underlying securities in kind or cash in exchange for ETF shares

• Client receives NAV plus any associated costs including spread of underlying securities, fixed creation cost with ETF sponsor, etc

Secondary Market Liquidity Providers Creation/Redemption

Source: SSgA ETF Global Capital Markets Group.

GLSTND-0325

13

Type of Product Advantages Considerations Works Best

Futures

• Leverage

• Liquidity (certain benchmarks)

• Low commission

• Roll risk

• Limited exposure

• Short term trades

• Popular benchmarks

• Higher notional values

ETFs

• Variety of offerings

• Liquidity

• Ease of use

• Lendability

• Expense / fees

• Tracking error

• Replication method

• More specific exposure

• Flexible time frames and trading values

• Derivative constrained clients

Swaps

• Customisation

• Confidentiality

• Leverage

• Lower funding costs

• OTC

• Counterparty risk

• Set up / documentation

• Low turnover

• Longer-term and customised trades

Institutional Tools for Beta Exposure

ETFs, Futures or Swaps: Key Advantages and Considerations

Source: SPDR ETFs Strategy & Consulting.

GLSTND-0325

14

Content



SPDR ETFs

Appendix


15

Why Emerging Market Local Currency Debt?

Over the last decade there has been significant growth in issuance of Local Currency Emerging Market debt.

Emerging Market countries have lowered their reliance on hard currency debt and are increasingly financing in local currency to reduce vulnerability to external shocks.

Source: Barclays Capital, as of 31 December 2011.

Since 2000, EM governments have gravitated to issuing a much larger share of debt in local currency

Growth of EM Debt

0200

400600800

100012001400

16001800

Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Date

Mar

ket V

alue

($ B

il)

Local Currency EM Debt USD EM Debt

Growth in EM Debt Market

16

Why Emerging Market Local Currency Debt?

EMPRES-0563

Hard currency debt is typically USD denominated issuance compared to debt issued in the sovereign country’s local currency.

If EM economies continue to grow quickly and their currencies are allowed to appreciate, hard currency debt does not provide investors with the potential upside that local currency debt may provide.

Local currency issues have proved to be popular, allowing investors to access potential additional source of returns.

Values of outstanding issues in local currency now exceed those in USD.

Strong growth of emerging economies has generated internal demand for local currency issues through expanded local wealth and growing pension scheme provision.

International investors who recognise relative attractiveness of growing economies, lower debt/GDP ratios and stronger balance sheets consider currencies to be cheap.

Hard Currency vs. Local Currency

17

-12-10

-8-6-4-202468

1012

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Price Return Coupon Return Currency Return

Return Decomposition – Barclays Capital Emerging Markets Local Currency Liquid Government Index

Monthly Return (EUR, % Total Return)

It is not possible to invest directly in an index. Index performance does not reflect charges and expenses associated with the fund or brokerage commissions associated with buying and selling a fund. Index performance is not meant to represent that of any particular fund.Source: Barclays Capital, as of 31 December 2011.Past performance is not a guarantee of future results. Performance returns for periods of less than one year are not annualised.

18

Emerging Markets Assets: $3,219 million (USD)

ABF Pan Asia Bond

Index Fund $2,643M

SSgA Emerging Markets Passive Fixed Income Experience

Segregated Emerging Market Debt Accounts

$469M

SPDR Emerging Market Local Bond ETFs $107M

Managing EM Debt since 2005

Manage 3 EM Debt ETFs – SPDR Barclays Capital Emerging Markets Local

Bond ETF (US and Europe domiciled)

– ABF Pan Asia Bond Index Fund

Manage Global Inflation ETF with some EM– $1.172 billion in the SPDR DB International Govt

Inflation Bond ETF (WIP)

– US ETF launched in March 2008 that includes Brazil, Chile, Israel, Mexico, Poland, South Africa, South Korea, and Turkey.

SSgA Resources– 20 fixed income index portfolio managers

– Global trading platform

– Well established investment process to effectively capture asset class beta

CMINST-3276

*Source SPDR ETFs Strategy & Consulting, as of 31 December 2011. 19

Emerging Market Index Characteristics and Country Exposure

Barclays Capital EM Local Currency Government Index

Barclays Capital EM Local Currency Liquid Government Index

Number of Issues 401 242

Market Value (in USD Bn) 1,537 1,393

Modified Duration (%) 4.5 4.5

Yield to Maturity (%) 6.0 6.1

Coupon (%) 5.7 6.3

Data is as of the date indicated, is subject to change and should not be relied upon as current thereafter.Source: Barclays Capital, SPDR ETFs Strategy & Consulting, as of 30 March 2012.

Country Weights

20

Stratified Sampling Approach

Identify Sourcesof Risk

PortfolioConstruction

Implementation

Monitoring andMaintenance

– Risk is defined as any variance between portfolio and benchmark– Risk can arise from a change to the portfolio and/or the benchmark

– Select most efficient indexing strategy– Manage risk by strict adherence to index characteristics– Rebalancing and exit strategies follow the index rules– Seek to own only index-eligible securities

– Quasi to full replication– Stratified sampling– Dedicated trading desk

– Monitor holdings for sources of index deviations and impact of flows– Risk management and oversight– Any special consideration and/or tests

SSgA’s systematic investment process seeks to provide benchmark exposure by selecting the most efficient indexing strategy, while minimizing tracking error

21

Stratified Sampling Approach

Currency Duration Yield Curve Sector/Issuer exposure

• Key risk for local currency emerging market debt exposure

• Key risk for fixed income portfolio

• Match within tight tolerance

• Match key rate duration: the duration per bucket of maturity

• Match within tight tolerance

• Rating

• Sector

• Issuer idiosyncratic risk

• Risk measure • Market weight

• Contribution to duration

• Contribution to duration • Contribution to duration • Rating & country market weights deviations

• Contribution to spread duration per country

• Risk mitigation tool

• Physical bond exposure in local currency

• Fx forwards and non-deliverable forwards

• Diversified physical bond portfolio matching the index overall duration

• Interest rate derivatives to adjust a portfolio’s overall duration where available

• Diversified physical bond portfolio matching the index overall yield curve exposure

• Interest rate derivatives to adjust a portfolio’s overall duration in specific maturities where available

• Diversified physical bond portfolio matching the index overall quality and country exposures

• Index derivatives where available or credit default swaps to adjust a portfolio’s credit spread exposure

SSgA seeks to match the key risk characteristics of the index primarily by investing in securities that form part of the index universe

EMPRES-0563

22

SPDR Barclays Capital Emerging Markets Local Bond ETF

Weight (%)

RUSSIAN FEDERATION 7.85 03/10/2018 5.17%

TURKEY GOVERNMENT BOND 3.28 04/12/2013 3.28%

POLAND GOVERNMENT BOND 0 01/25/2014 2.17%

MALAYSIA GOVERNMENT BOND 3.43 08/15/2014 1.84%

KOREA TREASURY BOND 3 12/10/2013 1.77%

SOUTH AFRICA GOVERNMENT BOND 6.75 03/31/2021 1.60%

KOREA TREASURY BOND 3.75 06/10/2013 1.57%

BRAZIL LETRAS DO TESOURO NACIO 0 04/01/2014 1.54%

INDONESIA TREASURY BOND 8.25 07/15/2021 1.45%

MEXICAN BONOS 8.5 05/31/2029 1.41%

Top 10 Holdings, Characteristics and Maturity Breakdown are as of the 30 March 2012, are subject to change, and should not be relied upon as current thereafter.Source: Barclays Capital POINT, SPDR ETFs Strategy & Consulting, as of 30 March 2012.


BarCap EM Local Currency Liquid

Government IndexNumber of Holdings 190 242Average Maturity (yrs) 6.3 6.5Modified Duration (%) 4.5 4.5Yield-to-Maturity (%) 5.9 6.1Current Yield (%) 6.1 6.5Par-weighted Coupon (%) 6.0 6.3

Top 10 Holdings Maturity Breakdown

Characteristics

23


Barclays uses the "middle rating" of Moody, S&P, and Fitch to determine a security index classification. If only two of the agencies rate a security, then the most conservative (lowest) rating will be used. If only one rating agency rates a security, that one rating will be used. Where there are no security level ratings, an issuer rating may be used to determine index classification.Country Breakdown and Credit Quality are as of the 30 March 2012, are subject to change, and should not be relied upon as current thereafter.Source: Barclays Capital POINT, SPDR ETFs Strategy & Consulting, as of 30 March 2012. Excludes cash position in the ETF.

Country Breakdown Credit Quality

24

SPDR Barclays Capital Emerging Markets Local Bond ETF Performance

1 mth (%) 3mth (%) YTD (%) 1 Year (%) Since ETF Inception

(%)

3 Year Tracking

Error

5 Year Tracking

Error

Inception Date


-1.64 7.22 7.22 - 0.32 - - 16 May 2011

Barclays Capital Emerging Market Local Currency Liquid Government Index

-1.56 7.75 7.75 -1.13 1.41

Difference -0.12 -0.53 -0.53 - -1.09

Source: Barclays Capital, SPDR ETFs Strategy & Consulting, as of 30 March 2012. (SPDR Barclays Capital Emerging Markets Local Bond ETF – net returns in USD). Inception date for Barclays Capital Emerging Market Local Currency Liquid Government Index is January 2010.Past performance is not a guarantee of future results. Performance returns for periods of less than one year are not annualised.It is not possible to invest directly in an index. Index performance does not reflect charges and expenses associated with the fund or brokerage commissions associated with buying and selling a fund. Index performance is not meant to represent that of any particular fund.

Calendar Year Performance (% TR in USD)

25

SPDR Barclays Capital Emerging Markets Local Bond ETF Performance

1 mth (%) 3mth (%) 6 mth (%) 1 Year (%) 2 Years (%)

3 Years (%)

5 Years (%)

No. of funds 89 86 84 72 55 43 28

25th percentile 0.96 2.21 3.87 -0.73 6.39 13.78 8.30

Median 0.65 1.69 3.02 -2.08 5.25 12.62 7.02

75th percentile -3.32 -2.69 -4.23 -8.53 -1.48 2.96 -3.32

Barclays Capital Emerging Market Local Currency Liquid Government Index 0.64 1.68 3.18 -0.39 7.22 - -

Source: Morningstar Direct, as of 30 April 2012. Universe is Morningstar's 'Europe Open Ended Global Emerging Markets Bond – Local Currency' category. Oldest share class only. AUM totals in excess of $56 billion. Net of fees. Past performance is no guarantee of future performance. Performance returns for periods of less than one year are not annualised. It is not possible to invest directly in an index. Index performance does not reflect charges and expenses associated with the fund or brokerage commissions associated with buying and selling a fund. Index performance is not meant to represent that of any particular fund.

• Emerging Markets have historically been viewed by many as a prime candidate for active management due to market 'inefficiencies', access difficulties etc.

• However, identifying managers that can consistently added value in EM Debt is still difficult. • Passive options, until recently were few and far between.• The SPDR ETF alternative has become an attractive way for investors to access a diversified

portfolio of Emerging Markets local currency government bonds.

26

Local Currency Bond Access Products

Source: SPDR ETFs Strategy & Consulting, as of 31 December 2011. * Primary listing.


SPDR Citi Asia Local Government Bond ETF

Inception Date 16 May 2011 9 May 2012 (anticipated)

ISIN IE00B4613386 IE00B7GBL799

Base Currency USD USD

Ticker / Trading Currency –Exchange

Deutsche Börse* – SYBM (EUR) London Stock Exchange – EMDL (GBP) London Stock Exchange – EMDD (USD) Euronext – EMLD (EUR)SIX Swiss – EMDL (CHF)

Deutsche Börse* – SYBX GY (EUR) London Stock Exchange – ABND LN (GBP) London Stock Exchange – ASIA LN (USD) Euronext – n/a SIX Swiss – n/a

Total Expense Ratio (TER) 0.55% 0.50% (anticipated)

Index Name Barclays Capital Emerging Markets Local Currency Liquid Government Index

Citi Asian Government Bond Investable Index

No. of Index Constituents c. 240 c.185

Portfolio Construction Sampled Sampled

Income Treatments Distributing Distributing

27

Content




Appendix

SPDR ETFs

28

SPDR Exchange Traded Funds — Global Family of SPDR ETFs

Sector Assets(US $M)

Size $127,778

Commodity 68,743

Sector 60,460

Fixed Income 26,032

Dividend 10,955

International 8,289

Global 825

Style 809

Specialty 227

Broad 173

Grand Total $304,293*

$304 billion* in Global ETF Assets Under Management

Source: SSgA ETF Strategy & Consulting, as of March 31, 2012. * This AUM includes the assets of the SPDR Gold Trust (approx. $68.7 billion as of March 31, 2012), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent. This AUM excludes Asian sub-advised ETFs. 1 SPDR S&P 500® ETF (SPY US) is not registered for sale in Europe.

Global ETF Assets Under Management

A Leading ETF Provider– $304 billion* in global ETF AUM; over 160 ETFs worldwide spanning an array of asset classes

Industry Pioneer– Created the first and still largest ETF in 1993 (SPDR S&P® 500 ETF – SPY US)1

Trusted Institution

– Part of State Street Global Advisors (SSgA), one of the largest asset managers in the world with $1.99 trillion AUM globally

Style $809 MGlobal $825 MBroad $173 M

Specialty $227 M

Size $127,778 M

Fixed Income$26,032 M

Commodity$68,743 M

Sector$60,460 M

International$8,289 M

Dividend$10,955 M

29

SSgA Global Fixed Income and Currency

As of February 7, 2012* Product Engineer 30

SSgA: Leading Manager of Global Fixed Income Indexed Assets

Total Assets Under Management: $301 Billion (USD) in Fixed Income Assets Globally

Source: SSgA, as of December 2011. All calculations are unaudited. 31

The European SPDR ETFs Fixed Income Family

Barclays Capital Global Aggregate Index

SPDR Barclays Capital Euro Aggregate Bond ETF

SPDR Barclays Capital Euro

Corporate Bond ETF

SPDR Barclays Capital Euro

Government Bond ETF

SPDR Barclays Capital Sterling Aggregate Bond ETF

Barclays Capital Sterling Corporate

Bond Index

Barclays Capital UK Gilt Index

SPDR Barclays Capital US Aggregate Bond ETF

Barclays Capital US Corporate Bond Index

SPDR Barclays Capital US Treasury Bond ETF

SPDR Barclays 1-3 Year Euro Gov Bond ETF

Barclays Euro

Treasury 10+ Index

Barclays UK Gilt 1-

5 Year Index

Barclays UK Gilt

15+ Year Index

SPDR Barclays Capital Emerging Markets Local Bond ETF SPDR Barclays Capital Euro High Yield Bond ETF

SPDR ETF authorised on this index

SPDR Citi Asia Local Government Bond ETF

Emerging Market Debt High Yield

SPDR ETF launched

BofA Merrill Lynch EM Corporate Bond Index

32

SSgA Global Passive Equity

33

As of March 31, 2012* Does not manage moneyCertified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the US, which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Source: SSgA, as of 31 March 2012. *As of December 31, 2011, includes 5 year GEBS institutional average of $50 B and 5 year average SSgA ETF of $21 B, updated annually.**Exclusive of Emerging Markets Equities invested in other MSCI-benchmarked strategies such as MSCI ACWI and MSCI ACWI ex US."FTSE®”, "FT-SE®” and "Footsie®” are trade marks of the Exchange and FT and are used by FTSE under license. "All-World", "All-Share", "All-Small" and "FTSE4Good" are trademarks of FTSE. All Standard & Poor's Indexes are registered trademarks of Standard & Poor's Financial Services LLC. Dow Jones and Dow Jones Indices are service marks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by State Street Global Advisors (SSgA). Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell Indices are trademarks of Russell Investment Group. The MSCI Indexes are trademarks of MSCI Inc.

S&P and S&P®/

IFCI $4,035M

MSCI Emerging Markets$49,401 M

Customized Emerging Market Indices

$1,399 MFTSE Emerging Markets

$2,046M

Emerging Markets Equity AUM$56,881 Million**

Total Assets Under Management: $932 Billion (USD) in Equity Indexed Assets Globally– An average of $72 billion in annual net new assets over past five years*

– 85% of new assets derived from existing clients

S&P Indexes$348,875 M

Dow Jones/DJ IndexesSM

$22,409 M

Russell Indexes$102,263 M

MSCI $6,583 M

US TEMC$10,616 M

Other$6,881 M

US Index Assets Under Management$497,629 Million

International and Global Equity AUM$377,940 Million

MSCI Developed$267,371 M

Global TEMC$2,803 M

Other (Nasdaq, FTSE …)

$40,022 M

S&P Developed$25,841 M

FTSE Strategies$30,187 M

Dow Jones Developed$11,715 M

SSgA: Leading Manager of Global Equity Indexed Assets

34

The European SPDR ETFs Equity Family

SPDR MSCI ACWI IMI ETF

SPDR MSCI ACWI ETF

SPDR MSCI Emerging Markets ETF

SPDR MSCI Emerging Markets Small Cap ETF

SPDR MSCI EM Asia ETF

SPDR MSCI EM LatAm

ETF

SPDR MSCI EM Europe

ETF

SPDR MSCI Europe ETF

SPDR MSCI Europe Small Cap ETF

10 MSCI Europe Sectors

Broad Blended Equity Benchmarks

Emerging Market Equity Benchmarks Developed Market Equity Benchmarks

SPDR AEX ETF

SPDR FTSE UK All Share ETF

SPDR S&P 400 US Mid Cap ETF

SPDR S&P 500 ETF

SPDR S&P EM Dividend ETF

SPDR S&P US Dividend Aristocrats ETF

SPDR S&P UK Dividend Aristocrats ETF

SPDR S&P Euro Dividend Aristocrats ETF

Dividend Benchmarks

35

Content




SPDR ETFs

Appendix

36

Important InformationThis document has been issued by State Street Global Advisors Limited (“SSgA”). Authorised and regulated by the Financial Services Authority/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.

SPDR ETFs is the exchange traded funds (“ETF”) platform of State Street Global Advisors and is comprised of funds that have been authorised by European regulatory authorities as open-ended UCITS investment companies (“Companies”).

SSgA SPDR ETFs Europe I plc issue SPDR ETFs, and is an open-ended investment company with variable capital having segregated liability between its sub-funds. The Company is organised as an Undertaking for Collective Investments in Transferable Securities (UCITS) under the laws of Ireland and authorised as a UCITS by the Central Bank of Ireland.

SPDR ETFs is a French open-ended investment company organised as an Undertaking for Collective Investments in Transferable Securities (UCITS) under the laws of France and authorised by the Autorité des Marchés Financiers.

This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering in the United States, Canada or any province or territory thereof, where the Companies are not authorised or registered for distribution and where the Companies prospectuses have not been filed with any securities commission or regulatory authority. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States. The Companies have not and will not be registered under the Investment Company Act of 1940 or qualified under any applicable state securities statutes.

SPDR ETFs may not be available or suitable for you. This advertisement does not constitute investment advice or an offer or solicitation to purchase shares. The information in this document is designed solely for use by sophisticated, professional and institutional investors and any other persons should not rely on this communication. You should obtain and read the Companies’ prospectuses prior to investing. Prospective investors may obtain the current Prospectuses, the articles of incorporation, the Simplified Prospectuses as well as the latest annual andsemi-annual reports free of charge from SSgA, or from www.spdrseurope.com.

For Investors in Switzerland: This document is directed at qualified investors only, as defined by Article 10(3) of the Swiss Act on Collective Investment Schemes (CISA) and Article 6 of the Swiss Ordinance on Collective Investment Schemes (CISO). Certain of the funds are not registered with the Swiss Financial Market Supervisory Authority (FINMA) which acts as supervisory authority in investment fund matters. Certain of the funds referenced herein have not been authorised by the FINMA as a foreign Collective Investment Scheme under Article 120 of the Collective Investment Schemes Act of June 23, 2006. Accordingly, the shares of these funds may not be offered to the public in or fromSwitzerland unless they are placed without public solicitation as such term is defined by FINMA from time to time. In relation to those funds that are registered with FINMA, prospective investors may obtain the current sales prospectuses, the articles of incorporation, the simplified prospectuses as well as the latest annual and semi-annual reports free of charge from the Swiss representative, State Street Fund Management Ltd., Beethovenstrasse 19, 8027 Zurich, from the Swiss 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 prospectuses, complete and simplified, copies of which can be obtained from the Swiss representative or www.spdrseurope.com.

37

Important Information

"CITI" is a registered trademark and service mark of Citigroup Inc. or its affiliates, and used under license for certain purposes by State Street Global Advisors ("Licensee"). The SPDR Citi Asia Local Government Bond ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by Citigroup Index LLC (“Citigroup Index”) or any of its affiliates (collectively, “Citigroup”). Citigroup Index makes no representation or warranty, express or implied, to the owners or prospective owners of shares of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly, or the ability of the Fund to track the performance of the Citi AGB Investable Index or the ability of the Citi AGB Investable Index to track general bond market performance. Citigroup Index’s only relationship to Licensee is the licensing of certain information, data, trademarks and trade names of Citigroup. The Citi AGB Investable Index is determined, composed and calculated by Citigroup Index without regard to Licensee or the Fund. Citigroup Index has no obligation to take the needs of Licensee or the owners or prospective owners of the Fund into consideration in determining, composing or calculating the Citi AGB Investable Index. Citigroup Index is not responsible for and has not participated in the determination of the prices and amount of the shares to be issued by the Fund or the timing of the issuance or sale of the shares to be issued by the Fund or in the determination or calculation of the equation by which the shares to be issued by the Fund are to be converted into cash. Citigroup Index has no obligation or liability in connection with the administration, marketing or trading of the Fund.

CITIGROUP INDEX DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF THE CITI AGBI INVESTABLE INDEX OR ANY DATA INCLUDED THEREIN, OR FOR ANY COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATIONS (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO, AND CITIGROUP INDEX SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS OR DELAYS THEREIN. CITIGROUP INDEX MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OR PROSPECTIVE OWNERS OF SHARES OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE CITI AGB INVESTABLE INDEX OR ANY DATA INCLUDED THEREIN. CITIGROUP INDEX MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE CITI AGB INVESTABLE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL CITIGROUP HAVE ANY LIABILITY FOR ANY DIRECT, SPECIAL, PUNITIVE, INDIRECT, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE.

AEX Index® is a registered trademark of Euronext N.V. or its subsidiaries designating the index that it calculates and publishes. Euronext N.V. and its subsidiaries in no way sponsor, endorse or are otherwise involved in the issue and offering of the SPDR ® AEX Index ® ETF. Euronext N.V. and its subsidiaries disclaim any liability to any party for any inaccuracy in the data on which the AEX Index ® is based, for any mistakes, errors, or omissions in the calculation and/or dissemination of the AEX Index®, or for the manner in which it is applied in connection with the issue and offering of SPDR ® AEX Index ® ETF.

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Important Information

Exchange traded-funds (ETFs) trade like stocks, are subject to investment risk and will fluctuate in market value. The value of the investment can go down as well as up and the return upon the investment will therefore be variable. Changes in exchange rates may have an adverse effect on the value, price or income of an investment. Further, there is no guarantee an ETF will achieve its investment objective.

Risks associated with equity investing include stock values which may fluctuate in response to the activities of individual companies and general market and economic conditions. Investing in foreign domiciled securities may involve risk of capital loss from unfavourable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations. Investments in emerging or developing markets may be more volatile and less liquid than investing in developed markets and may involve exposure to economic structures that are generally less diverse and mature and to political systems which have less stability than those of more developed countries. Investments in small-sized companies may involve greater risks than in those of larger, better known companies.

Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; issuer credit risk; liquidity risk; and inflation risk.

The financial products referred to herein are not sponsored, endorsed, or promoted by MSCI and MSCI bears no liability with respect to any such financial products or any index on which such financial products are based. The Prospectus contains a more detailed description of the limited relationship MSCI has with SSgA and any related financial products.

Barclays Capital is a trademark of Barclays Capital, the investment banking division of Barclays Bank PLC (“Barclays Capital”) and has been licensed for use in connection with the listing and trading of the SPDR Barclays Capital ETFs. The products are not sponsored by, endorsed, sold or promoted by Barclays Capital and Barclays Capital makes no representation regarding the advisability of investing in them.

“FTSE®”, “FT-SE®” and “Footsie®” are trade marks jointly owned by the London Stock Exchange Plc and The Financial Times Limited and are used by FTSE International Limited (“FTSE”) under license. “All-World”, “All-Share” and “All-Small” and “FTSE4Good” are trademarks of FTSE. The FTSE UK All Share Index is calculated by FTSE. FTSE does not sponsor, endorse or promote this product and is not in any way connected to it and does not accept any liability. All intellectual property rights in the index values and constituent list vests in FTSE. SSgA has obtained full license from FTSE to use such intellectual property rights in the creation of this product.

“SPDR” is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and has been licensed for use by State Street Corporation. STANDARD & POOR’S, S&P, S&P 500 and S&P MIDCAP 400 are registered trademarks of Standard & Poor’s Financial Services LLC. No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by S&P or its Affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in such products. Further limitations and important information that could affect investors’ rights are described in the prospectus for the applicable product.

Expiration Date: 31.05.2013 IBGE-0485 © 2012 State Street Corporation – All rights reserved.

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