Since 2005, State Street Global Advisors has brought a disciplined approach to the design and management of its suite of target date funds. Our institutional strategy has been road-tested across multiple market cycles to help meet the objectives of a broad range of participants.
This September, we celebrated our 5 year target date mutual fund track record, and are taking this moment to highlight our:
Click here for the full brochure.
Bringing our institutional investing strategies to everyone through our target date mutual funds gives advisors and their clients easy access to sophisticated solutions. Here are four key concepts to keep in mind:
1. Strategic Index Investment Approach
Our target date mutual funds are constructed using 11 underlying State Street index funds, which are designed to be cost efficient and style neutral. These funds are reviewed annually to evaluate the efficacy of the glidepath and the management of four key risks faced by participants: accumulation, inflation, longevity and volatility.
2. Fully Diversified Underlying Fund Lineup
We employ a modular approach to asset allocation to help, manage risks at the top level (stocks versus bonds) and within the sub-asset classes (within stocks and within bonds). We also provide broad exposure to equity, fixed income, and inflation hedging asset classes.
Figure 1: Following a Needs-Based Glidepath Strategy
3. Graduated Glidepath
Our graduated approach seeks to emphasize wealth accumulation for youngest participants and wealth preservation for pre-retirees/retirees through more rapid de-risking. This approach aligns with our risk reduction policy, which assumes a non-linear relationship between age and risk capacity.
4. "Through" Glidepath
We continue to de-risk for a 5-year period after participants reach 65 because academic research shows that the majority of participants do not make withdrawals from their personal retirement accounts until age 70.5 (when minimum distributions are required).[i] In addition, we consider risk at the total portfolio level with a specific focus on balancing capital preservation and longevity risk (i.e. the risk of outliving one’s assets).
For more information on our target date mutual fund series, contact our team dedicated to serving DC Advisors at DCIntermediaryTeam@ssga.com.
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. Investing involves risk, including the risk of loss of principal. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors’ express written consent.
State Street Global Advisors Target Retirement Funds are designed for investors expecting to retire around the year indicated in each fund’s name. When choosing a Fund, investors should consider whether they anticipate retiring significantly earlier or later than age 65 even if such investors retire on or near a fund’s approximate target date. There may be other considerations relevant to fund selection and investors should select the fund that best meets their individual circumstances and investment goals. The funds' asset allocation strategy becomes increasingly conservative as it approaches the target date and beyond. The investment risks of each Fund change over time as its asset allocation changes.
Diversification does not ensure a profit or guarantee against loss.
Investing involves risk including the risk of loss of principal.
There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors’ express written consent.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of
State Street Corporation. References to State Street may include State Street Corporation and its affiliates.
Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information on SSGA Mutual Funds call 1-800-997-7327 or visit www.SSGAfunds.com. Read it carefully.
Not FDIC Insured • No Bank Guarantee • May Lose Value
© 2022 State Street Corporation. All Rights Reserved.