Products March 19, 2008

SSgA Launches First International Inflation-Protected Bond ETF

State Street Global Advisors (SSgA), the investment management arm of State Street Corporation, announced that the SPDR DB International Government Inflation-Protected Bond ETF (Ticker: WIP) began trading on the American Stock Exchange (Amex) on March 19, 2008.
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The SPDR DB International Government Inflation-Protected Bond ETF seeks to track the DB Global Government ex-US Inflation-Linked Bond Capped Index, which includes 120 inflation-indexed bonds from 18 developed and emerging countries outside of the US. To be included in the Index, bonds must be capital-indexed and linked to an eligible inflation index; have at least one year remaining to maturity at the Index rebalancing date; have a fixed, step-up, or zero notional coupon; and settle on or before the Index rebalancing date.

The Fund’s expense ratio is 0.50 percent.

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“Demand for international inflation-linked bond exposure has increased significantly in recent years as investors look to improve the risk-return profile of their portfolios by hedging against inflation and US dollar exposure while improving diversification,’ said James Ross, senior managing director at State Street, in a company announcement.

More information can be found at www.ssga.com.

Products March 18, 2008

Thrivent Offers Service to Help Retirees Make Income Last

Thrivent Financial for Lutherans is launching a customized service to help retirees actively manage their invested assets and spending in retirement.
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Thrivent Retirement Income Optimizer (TRIO) pairs technology, including an analysis of 1,000 market scenarios, with one-on-one consultation to create a customized framework for each retiree, Thrivent said in a press release. Instead of setting up a program that transfers assets to an annuity or other investments right at retirement, the service is ongoing throughout retirement, signaling retirees at least annually when it might be time to reallocate assets, hold invested assets instead of spending, move some assets into an inflation-adjusted stream of income, or take no action.

TRIO’s three guiding principles are:

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  • Diversify Assets for Growth and Income – To meet both long- and short-term needs, assets are allocated into growth and income buckets, with guidelines of how to replenish the income bucket from the growth bucket each year.
  • Guarantee Inflation-adjusted Income – Sustaining income is improved by allocating a portion of the portfolio to guaranteed lifetime income. As part of its annual review, TRIO will alert the retiree when the market and conditions are right to convert a portion, typically 10% or 15%, of their portfolio to a life contingent annuity.
  • Manage Withdrawals to Make Money Last – To preserve assets for the long term, withdrawal guidelines are set to optimize asset balances. TRIO is responsive to varying market conditions and will advise the retiree on when to hold investments instead of making withdrawals. Likewise, it will enable additional spending flexibility when conditions are favorable.

Participants can choose to apply some or all of the guiding principles at any time when reviewing their situation with a Thrivent Financial representative, the announcement said. TRIO works with all of one’s existing assets and income sources, whether with Thrivent Financial or other firms.

To learn more, visit www.thrivent.com/trio or call 1-800-THRIVENT (847-4836) to locate a Thrivent Financial representative.

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