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U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM N-17f-2
CERTIFICATE OF ACCOUNTING OF SECURITIES AND SIMILAR INVESTMENTS IN THE CUSTODY
OF MANAGEMENT INVESTMENT COMPANIES
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
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1. Investment Company Act File Number: Date examination completed:
811-08837 November 24, 1999
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2. State Identification Number:
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AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA None MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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Other (specify): [ ]
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3. Exact name of investment company as specified in registration statement:
The Select Sector SPDR Trust
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4. Address of principal executive office: (number, street, city, state,
zip code) 225 Franklin Street, Boston, MA 02110
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INSTRUCTIONS
This Form must be completed by the investment companies that have custody of
securities or similar investments.
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with
Rule 17f-2 under the Act and applicable state law, examines securities and
similar investments in the custody of the investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable state law. File the original
and one copy with the Securities and Exchange Commission's principal office in
Washington, D.C., one copy with the regional office for the region in which the
investment company's principal business operations are conducted, and one copy
with the appropriate state administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
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REPORT OF INDEPENDENT ACCOUNTANTS
November 24, 1999
To the Shareholders and Trustees of
The Select Sector SPDR Trust
We have examined management's assertion about each of the portfolios comprising
The Select Sector SPDR Trust (collectively referred to as the "Trust")
compliance with the requirements of subsections (b) and (c) of Rule 17f-2 under
the Investment Company Act of 1940 (the Act) as of June 30, 1999 included in the
accompanying "Management Assertion Regarding Compliance with Certain Provisions
of the Investment Company Act of 1940." Management is responsible for the
Trust's compliance with those requirements. Our responsibility is to express an
opinion on management's assertion about the Trust's compliance based on our
examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and accordingly included
examining, on a test basis, evidence about the Trust's compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of June 30, 1999, and with respect to agreement of purchases and
sales of securities, for the period from December 16, 1998 (commencement of
operations of the Trust) through June 30, 1999, without prior notice to
management.
- - Confirmation with the Custodian of all securities of the Trust held in book
entry form at the Depository Trust Company. For such securities, review of
all reconciliations of the security positions recorded at the Custodian to
the positions held in omnibus form for the Custodian's account at the
Depository Trust Company, observing no unresolved differences.
- - Confirmation of all securities purchased/sold but not received/delivered
with brokers.
- - Reconciliation of confirmation results as to all such securities to the
books and records of the Trust and the Custodian.
- - Agreement of nine security purchases and nine security sales or maturities
during the period December 16, 1998 to June 30, 1999 from the books and
records of the Trust to broker confirmations.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Trust's compliance
with specified requirements.
In our opinion, management's assertion that the Trust was in compliance with the
above mentioned provisions of Rule 17f-2 of the Investment Company Act of 1940
as of June 30, 1999 is fairly stated, in all material respects.
This report is intended solely for the information and use of the Trustees,
management of the Trust and the Securities and Exchange Commission and should
not be used by anyone for any other purpose.
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MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH CERTAIN PROVISIONS OF THE
INVESTMENT COMPANY ACT OF 1940
We, as members of management of The Select Sector SPDR Trust (the Trust), are
responsible for complying with the requirements of subsections (b) and (c) of
Rule 17f-2, Custody of Investments by Registered Management Investment
Companies, of the Investment Company Act of 1940. We are also responsible for
establishing and maintaining effective internal controls over compliance with
those requirements. We have performed an evaluation of the Trust's compliance
with the requirements of subsections (b) and (c) of Rule 17f-2 as of June 30,
1999, and from December 16, 1998 through June 30, 1999.
Based on this evaluation, we assert that the Trust was in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of June 30, 1999, and from December 16, 1998 through June 30,
1999, with respect to securities reflected in the investment account of the
Trust.
The Select Sector SPDR Trust
By /s/ E. Davis Hawkes, Jr.
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Title Treasurer and Assistant Secretary
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Date November 24, 1999
