Exhibit: (a)(1)
SELECT SECTOR SPDR(R) TRUST
CODE OF CONDUCT FOR PRINCIPAL EXECUTIVE AND
PRINCIPAL FINANCIAL OFFICERS
I. COVERED OFFICERS/PURPOSE OF THE CODE
This Code of Conduct (the "Code") shall apply to the Select Sector
SPDR(R) Trust's (the "Trust") Principal Executive Officer, Principal Financial
Officer, Controller, Principal Accounting Officer and persons performing similar
functions (the "Covered Officers," each of whom is named in Exhibit A attached
hereto) for the purpose of promoting:
- - honest and ethical conduct, including the ethical handling of actual or
apparent conflicts of interest between personal and professional
relationships;
- - full, fair, accurate, timely and understandable disclosure in reports
and documents that the Trust files with, or submits to, the Securities
and Exchange Commission ("SEC") and in other public communications made
by the Trust;
- - compliance with applicable laws and governmental rules and regulations;
- - the prompt internal reporting of violations of the Code to an
appropriate person or persons identified in the Code; and
- - accountability for adherence to the Code.
Each Covered Officer should adhere to a high standard of business ethics and
should be sensitive to situations that may give rise to actual as well as
apparent conflicts of interest.
II. COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS
OF INTEREST
OVERVIEW. A "conflict of interest" occurs when a Covered Officer's
private interest interferes with the interests of, or his service to, the Trust.
For example, a conflict of interest would arise if a Covered Officer, or a
member of his family, receives improper personal benefits as a result of his
position with the Trust. Covered Officers must avoid conduct that conflicts, or
appears to conflict, with their duties to the Trust. All Covered Officers should
conduct themselves such that a reasonable observer would have no grounds for
belief that a conflict of interest exists. Covered Officers are not permitted to
self-deal or otherwise to use their positions with the Trust to further their
own or any other related person's business opportunities.
This Code does not, and is not intended to, repeat or replace the
programs and procedures or codes of ethics of the Trust's investment adviser or
distributor.
Although typically not presenting an opportunity for improper personal
benefit, conflicts may arise from, or as a result of, the contractual
relationship between the Trust and its service providers, including investment
adviser, of which the Covered Officers may be officers or employees. As a
result, this Code recognizes that the Covered Officers will, in the normal
course of their duties (whether formally for the Trust, the investment adviser,
or other service providers), be involved in establishing policies and
implementing decisions that will have different effects on the service providers
and the Trust. The participation of the Covered Officers in such activities is
inherent in the contractual relationship between the Trust and its service
providers and is consistent with the performance by the Covered Officers of
their duties as officers of the Trust. Thus, if performed in conformity with the
provisions of the Investment Company Act of 1940, as amended ("Investment
Company Act") and the Investment Advisers Act of 1940, as amended ("Investment
Advisers Act"), such activities will be deemed to have been handled ethically.
In addition, it is recognized by the Trust's Board of Trustees (the "Board")
that the Covered Officers may also be officers or employees of one or more other
investment companies covered by this or other codes.
The following list provides examples of conflicts of interest under the
Code, but Covered Officers should keep in mind that these examples are not
exhaustive. The overarching principle is that the personal interest of a Covered
Officer should not be placed improperly before the interest of the Trust.
* * * *
Each Covered Officer must not:
- - use his personal influence or personal relationship improperly to
influence investment decisions or financial reporting by the Trust
whereby the Covered Officer would benefit personally to the detriment
of the Trust;
- - cause the Trust to take action, or fail to take action, for the
individual personal benefit of the Covered Officer rather than the
benefit of the Trust; or
- - retaliate against any other Covered Officer or any employee of the
Trust or its affiliated persons for reports of potential violations by
the Trust of applicable rules and regulations that are made in good
faith.
Each Covered Officer must discuss certain material conflict of interest
situations with the Trust's Audit Committee. Examples of such situations
include:
- - service as a director, trustee, general partner, or officer of any
unaffiliated business organization. This rule does not apply to
charitable, civic, religious, public, political, or social
organizations, the activities of which do not conflict with the
interests of the Trust;
- - the receipt of any non-nominal gifts (valued greater than $250.00);
- - the receipt of any entertainment from any company with which the Trust
has current or prospective business dealings unless such entertainment
is business-related, reasonable in
cost, appropriate as to time and place, and not so frequent as raise
any question of impropriety;
- - any ownership interest in, or any consulting or employment relationship
with, any of the Trust's service providers, other than its investment
adviser, principal underwriter, administrator, transfer agent,
custodian or any affiliated person thereof; and
- - a direct or indirect financial interest in commissions, transaction
charges or spreads paid by the Trust for effecting portfolio
transactions or for selling or redeeming shares other than an interest
arising from the Covered Officer's employment, such as compensation or
equity ownership.
III. DISCLOSURE AND COMPLIANCE
- - Each Covered Officer will monitor the compliance of the Trust and the
Trust's service providers with federal or state statutes, regulations
or administrative procedures that affect the operation of the Trust.
- - Each Covered Officer should not knowingly misrepresent, or cause others
to misrepresent, facts about the Trust to others, whether within or
outside the Trust, including to the Trust's Board, Trust's Audit
Committee and the Trust's independent auditors, and to governmental
regulators and self-regulators and self-regulatory organizations.
- - Each Covered Officer should, to the extent appropriate within his or
her area of responsibility, consult with other officers and employees
of the Trust and its service providers with the goal of promoting full,
fair, accurate, timely and understandable disclosure in the reports and
documents the Trust files with, or submits to, the SEC and in other
public communications made by the Trust.
- - Each Covered Officer will exhibit and promote the highest standards of
honest and ethical conduct through the establishment and operation of
policies and procedures that encourage professional integrity in all
aspects of the Trust's operations.
IV. REPORTING AND ACCOUNTABILITY
Each Covered Officer must:
- - upon adoption of this Code (or thereafter as applicable, upon becoming
a Covered Officer), sign and return a report in the form of Exhibit B
to the Trust's compliance officer affirming that he or she has
received, read, and understands the Code;
- - annually sign and return a report in the form of Exhibit C to the
Trust's compliance officer as an affirmation that he or she has
complied with the requirements of the Code; and
- - notify the Trust's Audit Committee promptly if he or she knows of any
violation of this Code. Failure to do so is itself a violation of this
Code.
The Trust's Audit Committee is responsible for applying this Code to
specific situations in which questions are presented under it and has the
authority to interpret this Code in any particular situation including any
approvals or waivers sought by the Covered Persons.
The Audit Committee will follow these procedures in investigating and
enforcing this Code:
- - The Audit Committee will take all appropriate actions to investigate
any potential violations reported to the Committee.
- - If, after such investigation, the Audit Committee believes that no
violation has occurred, the Audit Committee is not required to take any
further action.
- - Any matter that the Audit Committee believes is a violation of this
Code will be reported to the full Board.
- - If the Board concurs that a violation has occurred, it will notify the
appropriate personnel of the applicable service provider and may
dismiss the Covered Officer as an officer of the Trust.
- - The Audit Committee will be responsible for granting waivers of
provisions of this Code, as appropriate.
- - Any changes to or waivers of this Code will, to the extent required, be
disclosed as provided by SEC rules.
V. OTHER POLICIES AND PROCEDURES
This Code shall be the sole code of ethics adopted by the Trust for
purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and
forms applicable to registered investment companies thereunder. Insofar as other
policies or procedures of the Trust, the Fund's investment adviser, principal
underwriter, or other service providers govern or purport to govern the behavior
or activities of the Covered Officers who are subject to this Code, they are
superseded by this Code to the extent that they overlap or conflict with the
provisions of this Code. The Trust's, investment adviser's and principal
underwriter's codes of ethics under Rule 17j-1 under the Investment Company Act
and the investment adviser's more detailed policies and procedures are separate
requirements applying to the Covered Officers and others, and are not part of
this Code.
VI. AMENDMENTS
Any amendments to this Code, other than amendments to Exhibit A, must
be approved or ratified by a majority vote of the Board, including a majority of
Independent Trustees.
VII. CONFIDENTIALITY
All reports and records prepared or maintained pursuant to this Code
will be considered confidential and shall be maintained and protected
accordingly. Except as otherwise required by law or this Code, such matters
shall not be disclosed to anyone other than the Trust's Board or Audit
Committee.
VIII. INTERNAL USE
The Code is intended solely for the internal use by the Trust and does
not constitute an admission, by or on behalf of Trust, as to any fact,
circumstance, or legal conclusion.
Approved on: August 11, 2003
Amended on: October 1, 2004
EXHIBIT A
Persons Covered by this Code of Ethics:
TITLE NAME
- -------------------------------------- ----------------
President, Chief Executive Officer and Donald A. Gignac
Principal Executive Officer
Treasurer, Chief Financial Officer and Michael P. Riley
Principal Financial Officer
Assistant Treasurer Karen Gillogly
EXHIBIT B
INITIAL CERTIFICATION FORM
This is to certify that I have read and understand the Code of Ethics
for Principal Executive and Senior Financial Officers of the Select Sector
SPDR(R) Trust, dated August 11, 2003, and that I recognize that I am subject to
the provisions thereof and will comply with the policy and procedures stated
therein.
Please sign your name here: _____________________________
Please print your name here: ____________________________
Please date here: _______________________________________
EXHIBIT C
ANNUAL CERTIFICATION FORM
This is to certify that I have read and understand the Code of Ethics
for Principal Executive and Senior Financial Officers of the Select Sector
SPDR(R) Trust dated August 11, 2003, (the "Code") and that I recognize that I am
subject to the provisions thereof and will comply with the policy and procedures
stated therein.
This is to further certify that I have complied with the requirements
of the Code during the period of _____________ through _____________.
Please sign your name here: _____________________________
Please print your name here: ____________________________
Please date here: _______________________________________