Capabilities
The objective of active equity management at SSgA is to provide solutions to meet the evolving needs of our clients by providing flexibility and a broad range of disciplines and benchmarks. Our active equity strategies range from low-risk enhanced to full active strategies that concentrate on and aim to achieve alpha generation. Each of these disciplines offers country, regional and global strategies. Quantitative strategies cover developed as well as emerging markets. All of the groups offer benchmarks ranging from small cap to style-oriented portfolios. We continually evolve our investment capabilities to keep pace with market developments, though always we remain constant in our tradition of offering client solutions.

Enhanced Equity
SSgA's enhanced equity strategies seek a low-risk, quantitative approach to active management, which aim for consistency of returns relative to the benchmark. Portfolios are constructed to match risk controls desired by our clients. We aim to use our clients' risk budgets effectively by seeking to produce modest excess returns over the benchmark and risk-adjusted active returns. Because of the strong benchmark orientation and low active risk target, many clients use enhanced products for their core equity exposure.

Active Quantitative Equities
Active quantitative equities generally take on more market risk than enhanced and emphasize value-added. The teams have designed both local market and cross-border strategies to help our clients seek consistent performance results. SSgA's quant teams also benefit from the local market expertise in our global investment centers. This insight allows us to develop models tailored to work best in each region. Excellent returns and innovative processes are the objectives of this team.

Global Fundamental Strategies
Fundamental strategies invest in companies that are industry leaders with strong earnings growth. The stock ideas for the portfolios come from our team of fundamental analysts and are implemented across all economic sectors. The in-depth understanding of the companies by our analysts allows us to construct portfolios with concentrated positions, while the portfolio management team implements risk management relative to the benchmarks.

Research
Research is an important element for all of our investment teams. Portfolio managers collaborate with dedicated research teams to set their research agendas. Portfolio managers on our quantitative teams have research experience, enabling them to complete some projects. They understand quantitative research and are responsible for the decisions regarding the implementation of model changes. They collaborate with the Advanced Research Center, a dedicated, quantitative-focused research group within the firm, which completes the majority of the major quantitative research projects. Our high-quality fundamental research team works with fundamental strategies and serves as a resource for the entire firm.

Our Philosophy
We aim to provide a full range of products to meet client needs, in addition to offering the latest in equity investing innovation. Our enhanced group covers developed and emerging markets, and is among the industry's most experienced 130/30 managers, managing both US and global strategies.¹ The quantitative strategies cover single country long-only strategies, as well as global 130/30, long/short and benchmark agnostic strategies. The fundamental team manages core as well as concentrated strategies and has a team dedicated to governance and environmental investing. Our solutions-based philosophy remains at the core of what we do, and results in a consistent focus on providing client solutions.

¹ EVestment Alliance, 12/31/06