U.S. Equity Select Strategy


Investment Objective

Investment Objective

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

BENCHMARK: S&P 500® Index 


Investment Strategy

Investment Strategy

The investment universe for this Strategy is made up of equity securities of large- and mid-cap companies domiciled in or trading in the U.S.

The Strategy uses a fundamental research-driven investment process to build a high-conviction portfolio of equities that we believe offer sustainable growth prospects at a reasonable valuation. After screening the investment universe, our analysts perform detailed company due-diligence including quantitative forecasts of financial metrics and a rigorous assessment of quality scored on proprietary metrics. Portfolio construction is based on choosing the names that offer the best combination of quality, sustainable growth, and valuation, while managing portfolio risk. The approach is disciplined and takes a long-term perspective.

SSGA employs the following constraints in managing the Strategy:

  • Number of holdings: 30 - 40
  • Maximum individual stock position: greater of 5% or benchmark +3%
  • Sector weight versus the Index: ± 15%
  • ADRs less than 10% of portfolio market value

Note:

The S&P 500® Index is a product of S&P Dow Jones Indices LLC ("SPDJI"), and has been licensed for use by SSGA. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). SSGA's investment products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index.

Equity securities are volatile and can decline significantly in response to broad market and economic conditions.  

Companies with large market capitalizations go in and out of favor based on market and economic conditions. Larger companies tend to be less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the value of the security may not rise as much as companies with smaller market capitalizations.

Investing involves risk including the risk of loss of principal.  

Actively managed strategies do not seek to replicate the performance of a specified index. The Strategy is actively managed and may underperform its benchmarks. An investment in the strategy is not appropriate for all investors and is not intended to be a complete investment program. Investing in the strategy involves risks, including the risk that investors may receive little or no return on the investment or that investors may lose part or even all of the investment.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.