Real Asset Strategy


Investment Objective

Investment Objective

The Strategy seeks an investment return that approximates as closely as practicable, before expenses, the performance of its custom benchmark index (the "Index") over the long term.

BENCHMARK: Composite: 25% Bloomberg Roll Select Commodity IndexSM, 25% S&P® Global LargeMidCap Commodity and Resources Index, 10% S&P Global Infrastructure Index, 15% Dow Jones U.S. Select REIT IndexSM, 25% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index


Investment Strategy

Investment Strategy

The Strategy seeks to offer diversification and a disciplined rebalancing process by investing approximately 25% of the Strategy’s assets in commodities, 25% in global natural resource stocks, 10% in global infrastructure stocks, 15% in U.S. REITs, and 25% in U.S. TIPS.  The Strategy seeks to approximate, as closely as practicable, before expenses, the performance of its custom Index over the long term, which is designed to seek to provide a long-term targeted return in excess of the U.S. CPI measure of inflation, while targeting a level of risk, as measured by standard deviation, similar to longer-dated U.S. TIPS, over the long term. Both of these metrics are based on SSGA’s expectations for future returns, risk and correlations across the included asset classes and cannot be guaranteed. 

The Strategy's asset class exposures are rebalanced on a quarterly basis. Asset class differences in weightings and increased portfolio risk relative to the Index may occur as a result of intra-quarter market movements.  The Strategy may allocate cash flows or partially rebalance the Strategy in efforts to reduce differences in weightings compared with the Index, or to maintain an active risk level that is consistent with the Strategy’s objective.  SSGA implements the Strategy's asset allocations through investments in indexed investment vehicles, which attempt to approximate the returns of a specific index or group of indices. These vehicles 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 its 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 will 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 tracking error. This could adversely impact the return to any investor.  The Strategy, or any of the investment pools in which it invests, may hold a portion of its assets in cash and cash instruments, including short-term investment vehicles managed by SSGA or an affiliate. SSGA will not normally enter into foreign currency exchange transactions for the Strategy.  The Strategy's return may not match the return of its Index.

Note:

S&P® Global LargeMidCap Commodity and Resources Index, S&P® Global Infrastructure Index and Dow Jones U.S. Select REIT IndexSM are products of S&P Dow Jones Indices LLC ("SPDJI"), and have 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").  They do not sponsor, endorse, sell, or promote SSGA's investment products or 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 indices.  Source: Bloomberg Barclays Indices. ©2019 Bloomberg Finance L.P. and its affiliates. Used with permission.  "Bloomberg®" and "Bloomberg Roll Select Commodity IndexSM" are service marks of Bloomberg Finance L.P. and its affiliates (collectively, "Bloomberg") and have been licensed for use for certain purposes by SSGA.  Bloomberg is not affiliated with SSGA and does not approve, endorse, review, or recommend SSGA's investment products, nor guarantee the timeliness, accurateness, or completeness of any data or information related to Bloomberg Roll Select Commodity IndexSM.

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.