The Strategy seeks an investment return that approximates as closely as practicable, before expenses, the performance of its benchmark index (the "Index") over the long term.
BENCHMARK: Russell 2000® Index
The Strategy is managed using an "indexing" investment approach, by which SSGA attempts to approximate, before expenses, the performance of the Index over the long term. In lieu of investment directly in the securities making up the Index, the Portfolio will typically purchase (1) index futures contracts based on the Index, (2) an optimized basket of index futures contracts, (3) options on those futures, or (4) engage in other transactions involving the use of derivatives. The Portfolio's return may not match the return of the Index for a number of reasons. For example, the return on the investments selected by SSGA may not correlate precisely with the return on the Index. Brokerage and margin costs and expenses associated with investments in derivatives may reduce the Portfolio's return. The Portfolio may incur a number of other operating expenses not applicable to the Index. The Portfolio may not be fully invested at times as a result of cash flows into or out of the Portfolio.
The Strategy will typically maintain a substantial cash balance. The Strategy will normally invest that cash in other short-term pooled investment vehicles sponsored, managed, or otherwise affiliated with SSGA, such as, for example, registered investment companies, private investment pools, or commingled trust funds. More information on the cash strategy is available upon request. The Strategy may at any time invest in additional or different investment vehicles, or may invest directly in short term investments, in SSGA's discretion. Because the Portfolio seeks to achieve a return based on the return of the Index, it will continue to pursue the investment strategies described above, even during times when SSGA expects the level of the Index to decline.
The Strategy's return may not match the return of the Index.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. The Russell 2000® Index is a trademark of Frank Russell Company.
There are risks involved with investing, including possible loss of principal. You should refer to the Strategy's Disclosure Document (SDD) for a complete description of the risks of investing in the Strategy. Please contact SSGA's relationship management team for a copy of the SDD.
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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