SSgA prepares to launch SPDR Blackstone/GSO Senior Loan ETF

By Toni Weeks

San Diego, April 25 - SSgA Active ETF Trust said it is planning a new fund whose master portfolio invests principally in high-yield senior loans, according to a 497 filing with the Securities and Exchange Commission.

The SPDR Blackstone/GSO Senior Loan ETF will trade on NYSE Arca under the symbol "SRLN."

The fund will seek to provide current income consistent with the preservation of capital by investing, under normal circumstances, substantially all of its assets in the Blackstone/GSO Senior Loan Portfolio, a separate series of the SSgA Master Trust with an identical investment objective as the new exchange-traded fund.

The portfolio seeks to outperform the S&P/LSTA U.S. Leveraged Loan 100 Index by investing at least 80% of its net assets, plus any borrowings for investment purposes, in senior loans that are typically high-yield, first-lien, senior secured floating-rate bank loans.

Daniel T. McMullen and Lee M. Shaiman are the portfolio managers. Both are employed by the subadviser, GSO/Blackstone Debt Funds Management LLC.

Total annual fund operating expenses will be 0.9%, consisting solely of a management fee.

Boston-based SSgA Funds Management, Inc. will serve as the investment adviser.

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