Each Portfolio seeks to provide a total investment return in excess of the performance of its benchmark index (the "Index") over the long term.
BENCHMARK: MSCI Emerging Markets Index
Equities of companies in the MSCI EM World Investable Market Index; and may include other companies. Additionally, a screen (the "Screen") of certain criteria is applied*.
SSGA uses in-depth investment analysis to construct a portfolio which we believe has the potential to outperform the Index. In performing this analysis, SSGA considers factors such as relative valuations, the quality of a company's earnings, the company's balance sheet and cash flows, and investor sentiment. We also incorporate in our model an evaluation of the macroeconomic environment, to take into account prevailing market conditions. This process seeks to maintain a disciplined approach that is adaptive to the macroeconomic environment and responsive to changing conditions. The Portfolio aims to have a minimum of 90% of its weight in stocks in the benchmark index, and may invest in smaller capitalization companies within the investable universe. A Portfolio may also invest in the securities of Chinese companies, normally restricted to residents of the People's Republic of China (commonly known as "A Shares" or "China A Shares"), through the Stock Connect program or other channels.
SSGA seeks to outperform the Index by 75 to 100 basis points (on an annualized basis) over the long term, with a projected active risk** of approximately 25 to 175 basis points. There can of course be no assurance that any Portfolio will achieve that level of performance or will maintain that level of active risk.
The MSCI Emerging Markets Index is a trademark of MSCI Inc.
*SSGA maintains the proprietary Screen which is intended to screen out those companies which engage in manufacturing of "controversial" weapons, or which have major ongoing controversies.
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.
This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.
Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.
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