Since inception, the average State Street target date fund has outperformed 91% of our peers, while also experiencing lower volatility than 73% of the same peer group, due in large part to our broadly diversified set of underlying asset classes. i
A Needs-Based Approach to Asset Allocation
Beyond deep diversification, we express our commitment to delivering better retirement outcomes by offering:
Low-cost, all index lineups
Thoughtfully constructed, “through” glidepath
Securities lending capabilities, intended to enhance returns
An array of investment vehicles, including collective investment trusts (CITs), custom separate accounts and mutual funds
J. Ryder TDF enhancements paper to come
Focus on the Long Run (PDF)
The Potential Diversification Benefits of Long Government Bonds in the Target Date Glidepath
Gaining leading sponsors’ insights on how to uncover target date fund
value through key enhancements.
A. Rudin paper to come
To learn more about our target date fund approach, including developing customized glidepaths, contact DCInvestmentStrategy@ssga.com.
i FactSet Research Systems-Morningstar, SSGA Investment Solutions Group (ISG). As of June 30, 2018. Gross Returns have been reduced by 9.4 basis points (.7833 basis points monthly) to reflect a hypothetical investment management fee and compared to Morningstar peer universe for each respective vintage. Returns are net administrative costs (2.6 bps). Inception Dates: 2040, 2030, 2010 Strategies (2/05); 2020, Income Strategies (4/05); 2015, 2025, 2035, 2045 Strategies (8/06); 2050 Strategy (10/07). Past performance is not a guarantee of future results. The performance returns were calculated in US dollars. Diversification does not ensure a profit or guarantee against loss.
This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.
Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.
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