Beyond the Benchmark: Targeting Higher Equity Returns and Lower Volatility with Best Idea Portfolios
Seeking Strong Active Returns with Strong Volatility Defenses
We believe the new investment reality of muted market returns means that investors will continue to need meaningful allocations to growth assets like equities in order to achieve their investment objectives. But market beta alone will not satisfy their return targets, so effective active equity approaches will also be required.
In short, investors want the growth potential of active equity strategies, but not the volatility and potential drawdowns associated with them. For investors prepared to move beyond benchmarks and tracking risk, SSGA’s Active Quantitative Equity team has explicitly embedded their two main objectives of maximizing return and minimizing risk into a systematic process of building active equity portfolios that target the best possible return and a measureable reduction in volatility.