Active Emerging Markets Strategy

Each Portfolio seeks to provide a total investment return in excess of the performance of its benchmark index (the "Index") over the long term. 

BENCHMARK: MSCI Emerging Markets Index

Equity securities of emerging market companies with market capitalizations comparable to companies included in the Index. "Emerging market companies" are companies domiciled, or doing a substantial portion of their business, in countries that SSGA considers at the time to have developing, emerging or frontier economies or securities markets.

SSGA uses proprietary analytical processes to identify countries and companies offering what SSGA believes to be the greatest potential for outperformance from the Index. In performing this analysis, SSGA considers factors such as relative valuations, the quality of a company's earnings, the company's balance sheet and cash flows, and investor sentiment. We also incorporate in our model an evaluation of the macroeconomic environment, to take into account prevailing market conditions. This process seeks to maintain a disciplined approach that is adaptive to the macroeconomic environment and responsive to changing conditions.

The Strategy may invest in emerging markets indirectly through other investment pools. SSGA may, but will not necessarily, enter into foreign currency exchange transactions for the Strategy. A Portfolio may also invest in the securities of Chinese companies, normally restricted to residents of the People's Republic of China (commonly known as "A Shares" or "China A Shares"), through the Stock Connect program or other channels. SSGA seeks to outperform the Index by 200 basis points (on an annualized basis) over the long term, with a projected active risk* of approximately 200 to 500 basis points. There can of course be no assurance that any Portfolio will achieve that level of performance or will maintain that level of active risk.

SSGA may implement the Strategy's asset allocations through investments in other investment vehicles. These will typically include investment pools (which may, but will not necessarily, be registered under the U.S. Investment Company Act of 1940, as amended) managed or sponsored by SSGA or an affiliate. Because of the unit issuance processes employed by the various underlying investment pools, allocations by the Strategy to certain pools on a given trading day may be invested in such pools at the next trading day's net asset value per unit. This will result in the portion of the Strategy's assets being invested in such investment pools being held in cash for the trading day and may result in increased active risk. This could adversely impact the return to any investor.

As part of its proxy voting program, SSGA is offering eligible investors that hold units in certain Portfolios a range of voting policies that can be applied to the voting of shares held in that Portfolio. Investors in these select Portfolios may, from time to time, enter into arrangements with SSGA pursuant to which such investors direct that a pro rata portion of shares held by the Portfolio attributable to such investors be voted pursuant to a voting policy made available by a third party proxy voting administrator. For a Portfolio structured as a pooled investment vehicle, an investor’s choice of voting policy and the voting of shares in accordance with such policy may not reflect, and may in fact conflict with, the concerns and values of one or more other investors in the Portfolio. To the extent that shares held by the Portfolio are voted pursuant to SSGA’s proxy voting program, there is a risk that such shares may be voted in a way that is different to how other equivalent shares held by the Portfolio are being voted. Please also refer to “Essential SSGA: A Summary of State Street Global Advisors’ U.S.-Domiciled Commingled Funds, U.S.-Managed Separately Managed Accounts and Related Conflicts of Interest” for additional information on SSGA’s policy on proxy voting and the risk factors associated with the SSGA proxy voting program.

The availability of the SSGA proxy voting program is subject to any applicable regulatory, operational (including in respect of fractional voting rights), local market (including any applicable local restrictions on split voting), tax, cost or other constraints of the third party proxy voting or SSGA. SSGA reserves the right to suspend or cancel, in full or in part, the SSGA proxy voting program (in any one instance or more broadly), including with immediate effect, if required by applicable law or regulation or if SSGA otherwise considers that such action is appropriate. This may result in shares being voted in accordance with the SSGA’s proxy voting policy rather than in accordance with an investor’s choice of voting policy.

Note:

The MSCI Emerging Markets Index is a trademark of MSCI Inc.

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.