Using the MRI and SPDR ETFs to

Optimize Asset Allocations

For multi-asset investors seeking performance in an absolute return framework,
identifying the prevailing market regime is paramount for optimizing asset allocations.

Knowing the prevailing market regime can help investors target
the optimal asset allocation mix. Here we show you how our
Market Regime Indicator can be used with our SPDR ETFs to
easily build transparent, balanced and robust portfolios that
are positioned for growth whilst maintaining strong defensive
capabilities.
SSgA developed the Market Regime Indicator (MRI) a
proprietary forward-looking indicator that continuously
monitors market conditions so that asset allocation can be
tailored to capture opportunities for growth whilst seeking
to minimise downsiderisks. The indicator uses a variety of
factors that reflect the multi-asset and global nature of capital
markets including:
An equity implied volatility factor Implied volatilities
may forecast future actual volatilities and increased selling of
put options which indicates risk aversion.
A currency implied volatility factor Currency volatility
has a direct impact on asset returns, and volatility increasing
through currency pairs may indicate weaker market appetite
for risk taking.
A credit spread factor Widening of credit spreads
signals that increased risk premiums are required to take on
credit risk. The underlying assumption is that investor risk
aversion increases along with the credit spread factor level.
The indicator closely tracks historical market stress events,
is predictive of changing market environments and
importantly trading strategies based on the indicator tend to
generate positive outperformance. Our Investment Solutions
Group has successfully used the MRI for some time as one of
the key inputs into its global tactical asset allocation decision-
making process.
MARKET REGIMES
By design, the MRI signal varies between 0 and 100%. This is
further refined to give 5 analytically distinct regimes within the
market cycle:
Crisis A time of intense difficulty or danger. An unstable
time in the markets, often characterised by extreme market
volatility. Ultimately, Crises come to an end and can represent
an inflection point in market sentiment.
High Risk Aversion A period where investors increase their
levels of risk aversion and generally seek protective strategies
or favour less volatile assets.
Normal Neutral market sentiment.
Low Risk Aversion Low risk aversion market.
Euphoria A time of exaggerated well-being and
overconfidence in market expectations often associated with
very low market volatility. Similar to Crisis, Euphoria does not
last forever, and one needs to expect regime changes.
The prevailing market regime indicated by the MRI reflects,
and to an extent predicts, market sentiment and allows us to
calculate appropriate risk budgets and, ultimately, optimized
asset allocations.

FIGURE 1: MARKET REGIME INDICATOR SINCE 2000

Regime Aware
Active Risk Budget Market Regime %
Low/Medium Crisis 100
Low High Risk Aversion 90

Medium Normal 66

High Low Risk Aversion 33

Medium/High Euphoria 10
2000 2002 2004 2006 2008 2010 2012 2014
n Market Events

spdrseurope.com
MARKET REGIME INDICATOR Q1 2014 FIGURE 2: MODEL EUROZONE PORTFOLIO FOR THE
While the MRI signal reached Normal Risk Aversion (from CURRENT MRI REGIME
Euphoria) in January 2014, it ended the quarter in Low Risk
EMU Governement Bonds: US Equities
Aversion regime. The MRI remained in Low risk regime 10% 20%
throughout the whole month of March with the exception of
18 March when it briefly switched to Normal regime. This Cash: Europe Equities
increase in the signal was primarily driven by the equity 10% 9%
implied volatility factor which spiked close to the Crisis
threshold over geopolitical concerns in Ukraine and the Pacic Equities
5%
slowdown in the Chinese economy. All three factors then
declined progressively throughout the second part of March
Global Small Cap
as stress levels in the markets receded, ending the month Euro Corp Bonds Equities 1%
close to the Euphoria threshold. All Maturities:
30% Emerging Market
Equities 1%
Currently, two out of three factors Implied Volatilities on
Currencies and Risky Debt Spread are in Euphoria regime. Euro High Yield
The Implied Volatilities on Equities factor, on the other hand, 4%
is in the Low risk regime. Real Estate
5%
Low Medium High Commodities
5%
RI SK I NDI CATOR
MA RKET REGI M E I NDI CATOR

Crisis High Risk Aversion Normal Low Risk Aversion Euphoria

FIGURE 3: IMPLEMENTING THE MODEL EUROZONE PORTFOLIO USING SPDR ETFs

TICKER BLOOMBERG

PORTFOLIO COMPOSITION INVESTMENT VEHICLE WEIGHT (%) ISIN ETC INDEX TFE (%)

Developed Market Equities: US SPDR S&P 500 ETF 10 IE00B6YX5C33 SPY 5 GY SPTR500N 0.15
SPDR S&P 500 Low
Developed Market Equities: US 10 IE00B802KR88 SPY 1 GY SP5LVIN 0.35
Volatility ETF
Developed Market Equities: Europe SPDR MSCI Europe ETF 9 FR0000001885 ERO FP MSEREURP 0.30
SPDR S&P Pan Asia Dividend
Developed Market Equities: Pacific 5 IE00B9KNR336 ZPRA GY SPDGPAUN 0.55
Aristocrats Index ETF
SPDR MSCI World Small
Global Small Cap Equities 1 IE00BCBJG560 ZPRS GY NCUDWI 0.45
Cap ETF
SPDR MSCI Emerging Markets
Emerging Market Equities 1 IE00B469F816 SPYM GY NDUEEGF 0.65
ETF
SPDR Barclays Euro High Yield
Euro High Yield 4 IE00B6YX5M31 SYBJ GY BEHLTREU 0.45
Bond ETF
SPDR Dow Jones Global Real
REITS 5 IE00B8GF1M35 SPYJ GY DWGRSN 0.40
Estate ETF
DJUBS Commodity
Commodities 5 - DNH4 Index DJUBS Index -
Index Future
Total (1) GROWTH ASSETS 50

SPDR Barclays Euro Corporate

Euro Corporate Bonds Long Dated 30 IE00B3T9LM79 SYBC GY BEHLTREU 0.20
Bond ETF
Euro Corporate Bonds SPDR Barclays 0-3 Year Euro
0 IE00BC7GZW19 SPBD GY DWGRSN 0.20
Short Dated Corporate Bond ETF
EMU Governement Bonds SPDR Barclays Euro Government
0 IE00B3S5XW04 SYBB GY DJUBS Index 0.15
Long Dated Bond ETF
Total (2) MEDIUM RISK ASSETS 30

EMU Governement Bonds SPDR Barclays 1-3 Year Euro

10 IE00B6YX5F63 SYB3 GY LET1TREU 0.15
Short Dated Government Bond ETF
Liquid Cash Euro Cash 10 - - - -
Total (3) CAPITAL PRESERVATION ASSETS 20

Total (1)+(2)+(3) 100

The information contained above is for illustrative purposes only.

2
MARKET PULSE Q1 2014
Because it introduced a measure of cloudiness over the global growth outlook, the opening quarter of 2014 proved frustrating for investors who
expected a benign continuation of rising bond yields and expanding share valuations. Downbeat activity indicators in China, as well as heightened
tensions in Ukraine, served to accentuate the unaccustomed sense of malaise, leading broad fixed income indices to outperform major equity
benchmarks over the first three months of the year.

Indeed, after a difficult 2013, fixed income markets opened 2014 on a firm note, and the improvement was sustained enough that most bonds
delivered solid positive returns for the first quarter as a whole and this despite the start of the tapering process by the US Federal Reserve.

Although the underlying appeal of equities weakened in the first quarter, a number of markets posted positive returns as financial conditions stayed
extraordinarily accommodative with central banks remaining committed to keeping volatility restrained Janet Yellen, newly appointed chair of
the US Federal Reserve, offered reassuring testimony on policy continuity. Not to be outdone, Mario Draghi of the European Central Bank and Mark
Carney of the Bank of England reiterated their own accommodative language, allowing several equity indices to regain positive year-to-date territory
before February was through.

THE BENEFITS OF USING ETFS FOR OUR TACTICAL

ASSET ALLOCATION:
Easy access to a wide spectrum of different asset classes, countries and investment styles
Can achieve consistent returns from particular markets by tracking an index
Easy and straightforward way to build exposure within a high turnover systematic framework
High levels of transparency in the portfolio holdings
Two-way market-making liquidity provides flexibility to move in and out of the market quickly
Regulated open-ended fund structure
Low fee levels for expenses and management

3
ABOUT SPDR ETFs
Offered by State Street Global Advisors, SPDR ETFs
provide professional investors with the flexibility to select
investments that are precisely aligned to their investment
strategy. Recognised as an industry pioneer, State Street
Global Advisors created the first ETF in 1993 (SPDR S&P
500 ETF ticker SPY US). Since then, each new member
of the SPDR ETFs family has been built to reflect our
intimate knowledge of the ETF market and over 30 years of
indexing experience. Today we manage nearly $388B in over
200 ETFs worldwide.
We believe ETFs are about finding simple solutions to
precisely meet investors needs. This belief is reflected in
every member of the SPDR ETFs family. All of our ETFs are
physically backed, providing a simple, transparent way to
access each market segment.
State Street Global Advisors is a global leader in asset
management. The firm is relied on by sophisticated investors
worldwide for its disciplined investment process, powerful
global investment platform and access to every major asset
class, capitalisation range and style. State Street Global
Advisors is the asset management business of State Street,
one of the worlds leading providers of financial services to
institutional investors.
SPDR S&P 500 ETF (SPY US) is not registered for sale in Europe.
As of 31 March 2014.
Important Information This document has been issued by State Street Global
Advisors Limited (SSgA). Authorised and regulated by the Financial Conduct
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: 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.
SSgA SPDR ETFs Europe II 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 Autorit des Marchs Financiers.
This document is not, and under no circumstances is to be construed as, an offer 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 Key Investor Information Documents (KIIDs) as well as the latest
annual and semi-annual reports free of charge from SSgA, or from spdrseurope.com.
For Investors in Finland: The offering of funds by the Company has been notified
to the Financial Supervision Authority in accordance with Section 127 of the Act
on Common Funds (29.1.1999/48) and by virtue of confirmation from the Financial
Supervision Authority the Company may publicly distribute its Shares in Finland.
4
BLOOMBERG PAGE
Enter SPDR <GO> to find us on Bloomberg.
CONTACT US
Visit spdrseurope.com.
Contact our SPDR ETFs Sales and Support team at
spdrseurope@ssga.com or +44 (0)20 3395 6888.
Or call your local SPDR ETFs representative.
Benelux +31 (0) 20 718 1016
France +33 (0)1 44 45 40 48
Germany +49 (0) 69 6677 45016
Ireland +353 (0)1 776 3049
Italy +39 02 3206 6140
Middle East & North Africa +971 (0) 4-437 2800
Nordics +32 (0) 2 793 4631
Spain +33 (0)1 44 45 41 70
Switzerland +41 (0) 44 245 7026
United Kingdom +44 (0)20 3395 6888
Certain information and documents that the Company must publish in Ireland
pursuant to applicable Irish law are translated into Finnish and are available for
Finnish investors by contacting State Street Custodial Services (Ireland) Limited, 78
Sir John Rogersons Quay, Dublin 2, Ireland.
For Investors in France: This document does not constitute an offer or request
to purchase shares in the Company. Any subscription for shares shall be made in
accordance with the terms and conditions specified in the complete Prospectus,
the KIID, the addenda as well as the Company Supplements. These documents are
available from the Company centralizing correspondent: State Street Banque S.A.,
23-25 rue Delariviere- Lefoullon, 92064 Paris La Defense Cedex or on the French part
of the site spdrseurope.com. The Company is an undertaking for collective investment
in transferable securities (UCITS) governed by Irish law and accredited by the Central
Bank of Ireland as a UCITS in accordance with European Regulations. European
Directive no. 85-611 dated 20 December 1985 on UCITS, as amended, established
common rules pursuant to the cross-border marketing of UCITS with which they duly
comply. This common base does not exclude differentiated implementation. This is
why a European UCITS can be sold in France even though its activity does not comply
with rules identical to those governing the approval of this type of product in France.
These compartments have been authorised to be sold by the Financial Services
Authority.
For Investors in Germany: The offering of SPDR ETFs by the Companies has been
notified to the Bundesanstalt fr Finanzdienstleistungsaufsicht (BaFin) in accordance
with section 132 of the German Investment Act. Prospective investors may obtain the
current sales Prospectus, the articles of incorporation, the KIID as well as the latest
annual and semi-annual report free of charge from State Street Global Advisors
GmbH, Brienner Strasse 59, D-80333 Munich. Telephone +49 (0)89-55878-400.
Facsimile +49 (0)89-55878-440.
For Investors in Luxembourg: This document is directed only at sophisticated
investors. In Luxembourg, the sale of the shares for certain of the funds has not been
authorised by the Commission du Surveillance du Secteur Financier and, accordingly,
those shares have not been and may not be offered, directly or indirectly, to the public
in or from Luxembourg, unless the relevant legal and regulatory requirements for
public offerings have been complied with.
For Investors in the Netherlands: This communication is directed at qualified
investors within the meaning of Section 2:72 of the Dutch Financial Markets
Supervision Act (Wet op het financieel toezicht) as amended. 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. Distribution
of this document does not trigger a licence requirement for the Companies or
SSgA in the Netherlands and consequently no prudential and conduct of business
supervision will be exercised over the Companies or SSgA by the Dutch Central
Bank (De Nederlandsche Bank N.V.) and the Dutch Authority for the Financial
continued
Markets (Stichting Autoriteit Financile Markten). The Companies have completed
their notification to the Authority Financial Markets in the Netherlands in order to
market their shares for sale to the public in the Netherlands and the Companies are,
accordingly, investment institutions (beleggingsinstellingen) according to Section
2:72 Dutch Financial Markets Supervision Act of Investment Institutions.
For Investors in Norway: The offering of SPDR ETFs by the Company has
been notified to the Financial Supervisory Authority of Norway (Kredittilsynet) in
accordance with applicable Norwegian Securities Funds legislation. By virtue of a
confirmation letter from the Financial Supervisory Authority dated 28 March 2013 the
Company may market and sell its shares in Norway.
For Investors in Spain: SSgA SPDR ETFs Europe I plc and SSgA SPDR ETFs Europe
II plc have been authorised for public distribution in Spain and are registered with the
Spanish Securities Market Commission (Comisin Nacional del Mercado de Valores)
under no.1244 and no.1242.
A copy of the Prospectuses and Key Investor Information Documents, the Marketing
Memoranda, the fund rules or instruments of incorporation as well as the annual
and semi-annual reports of SSgA SPDR ETFs Europe I plc and SSgA SPDR ETFs
Europe II plc may be obtained from the Spanish distributors. The complete lists of
the authorised Spanish distributors of SSgA SPDR ETFs Europe I plc and SSgA SPDR
ETFs Europe II plc is available on the website of the Securities Market Commission
(Comisin Nacional del Mercado de Valores).
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 from Switzerland unless they are placed without public
solicitation as such term is defined by FINMA from time to time. In relation to those
funds which are registered with FINMA, prospective investors may obtain the current
sales Prospectuses, the articles of incorporation, the KIIDs 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 and KIIDs, copies of which can be obtained from the Swiss
representative, or at spdrseurope.com.
For Investors in the UK: The Companies are recognised schemes under Section
264 of the Financial Services and Markets Act 2000 (the Act) and are 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 Companies, and compensation will not be available
under the UK Financial Services Compensation Scheme.
Exchange traded funds (ETFs) trade like stocks, are subject to investment risk andwill
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 investmentobjective.
Risks associated with equity investing include stock values which may fluctuate
inresponse to the activities of individual companies and general market and
economic conditions.
2014 State Street Corporation. All Rights Reserved. ID0954-IBGE-1036 0314
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.
Investing in REITs involves certain distinct risks in addition to those risks associated
with investing in the real estate industry in general. Equity REITs may be affected by
changes in the value of the underlying property owned by the REITs, while mortgage
REITs may be affected by the quality of credit extended. REITs are subject to heavy
cash flow dependency, default by borrowers and self-liquidation. REITs, especially
mortgage REITs, are also subject to interest rate risk (i.e., as interest rates rise, the
value of the REIT may decline).
Although bonds generally present less short-term risk and volatility risk than stocks,
bonds contain interest rate risks; the risk of issuer default; issuer credit risk; liquidity
risk; and inflation risk. This effect is usually pronounced for longer-term securities.
Any fixed income security sold or redeemed prior to maturity may be subject to a
substantial gain or loss.
International Government bonds and corporate bonds generally have more moderate
short-term price fluctuations than stocks, but provide lower potential long-term
returns.
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.
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.
Dow Jones Global Real Estate Securities is a trademark of Dow Jones Trademark
Holdings LLC (Dow Jones) and is licensed by S&P Dow Jones Indices LLC and
its affiliates (S&P Dow Jones Indices) and State Street Global Advisors. The
SPDR Dow Jones Global Real Estate Securities is not sponsored, endorsed, sold or
promoted by Dow Jones or S&P Dow Jones Indices.
Barclays is a trademark of Barclays, the investment banking division of Barclays Bank
PLC (Barclays) and has been licensed for use in connection with the listing and
trading of the SPDR Barclays ETFs. The products are not sponsored by, endorsed,
sold or promoted by Barclays and Barclays makes no representation regarding the
advisability of investing in them.
SPDR is a registered trademark of Standard & Poors Financial Services LLC (S&P)
and has been licensed for use by State Street Corporation. STANDARD & POORS,
S&P, S&P 500 and S&P MIDCAP 400 are registered trademarks of Standard & Poors
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: 31/3/2015