Being a leader in index solutions
SSGA offers a broad range of high-quality index strategies that can help lower costs and allow participants to keep more of what their portfolios earn over time.
Focusing on active strategies for inefficient asset classes
We also believe in the use of active strategies where it can potentially add value for participants.
Helping you strengthen your overall menu
We can help you evaluate your broader investment lineup and more systematically help your participants achieve retirement readiness.
Indexing Keeps Costs Low for Core Investments
Indexing offers participants an effective way to gain broad-based equity exposure to efficient asset classes through low-cost, institutional quality investment strategies. SSGA has been an indexing leader since the inception of our firm in 1978. We can construct two types of index-based portfolios—fully replicated and sampled/optimized. For defined contribution plans focused on risk management, lower cost and efficiency, index-based investment strategies can fit nicely into your plan's investment menu.
Active Approach Often Makes Sense for Less-Efficient Asset Classes
We are also able to deliver active management solutions for market segments that offer the greatest opportunities to generate alpha, such as in domestic small-cap and emerging markets. These are markets where we believe that participants may benefit from active exposure due to the markets’ size and inefficiencies. The key to adding value through active management lies in understanding which markets provide more opportunity and in employing a well-defined process for investment selection.
Look for Opportunities to Strengthen Your Lineup
If you’re looking to add growth to your overall menu, we can help you identify potential opportunities for strengthening your menu—including the following ideas:
- Consider using more broadly diversified indexes for your core investment strategies.
- Add more active strategies to your lineup where appropriate to help raise expected returns.
- Construct a core fund-of-funds option that includes a mix of passive and active underlying funds.
- Enhance your default investment option with investment strategies to manage downside risk while retaining exposure to growth.
Risks associated with equity investing include stock values that may fluctuate in response to the activities of individual companies and general market and economic conditions.