Skip to main content

Issuer Scored Corporate Index Strategy

Investment Objective

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

The Index is an alternatively weighted bond index that weights corporate issuers that also have publicly traded equity using factors other than the market value of their outstanding debt. Preserving the same sector weights as the broad Bloomberg Capital US Corporate Index (Ex Subordinated Debt), this Index uses the financial ratios (return on assets, interest coverage and current ratio) of publicly listed companies to calculate issuer scores that are used as factors to weight specific issuers within each sector.

BENCHMARK: Bloomberg U.S. Issuer Scored Corporate Bond Index

Investment Strategy

The Strategy is managed using an indexing investment approach, by which SSGA attempts to approximate, before expenses, the performance of the Index over the long term. In seeking to approximate the performance of the Index, SSGA expects to employ a sampling strategy where SSGA purchases a subset of the securities in the Index in an effort to create a portfolio of securities with generally the same risk and return characteristics of the Index. The actual number of holdings in the Portfolio will be based on a number of factors, including the size of the account in question. SSGA generally expects the number of securities in any account managed using the Strategy to be less (in some cases substantially less) than the number of securities comprising the Index. SSGA may use other techniques in attempting to track the performance of the Index, including the use of derivatives, such as options, futures contracts, and swap transactions. Because the Index holdings are reweighted periodically based on financial measures, the ability of the Strategy to track the Index performance will be highly dependent on SSGA's ability to implement, and to adjust, its portfolio sampling to match the Index's risk and return characteristics over time.

SSGA expects that it will typically seek to replicate index returns for the Portfolio through investments in the "cash" bond markets - actual holdings of debt securities and other instruments - rather than through "notional" or "synthetic" positions achieved through the use of derivatives, such as futures contracts or swap transactions (except in the case where SSGA believes that use of derivatives is necessary to achieve an exposure that is not readily available through the cash markets).

The Strategy's return may not match the return of the Index. In particular, because the Strategy will not typically own all of the securities comprising the Index at any given time, the success of the Strategy in tracking the Index return will depend to a large extent on the ability of SSGA to create a portfolio of securities and other instruments that will provide a return comparable to that of the Index.

As part of its proxy voting program, SSGA is offering eligible investors that hold units in certain Portfolios a range of voting policies that can be applied to the voting of shares held in that Portfolio. Investors in these select Portfolios may, from time to time, enter into arrangements with SSGA pursuant to which such investors direct that a pro rata portion of shares held by the Portfolio attributable to such investors be voted pursuant to a voting policy made available by a third party proxy voting administrator. For a Portfolio structured as a pooled investment vehicle, an investor’s choice of voting policy and the voting of shares in accordance with such policy may not reflect, and may in fact conflict with, the concerns and values of one or more other investors in the Portfolio. To the extent that shares held by the Portfolio are voted pursuant to SSGA’s proxy voting program, there is a risk that such shares may be voted in a way that is different to how other equivalent shares held by the Portfolio are being voted. Please also refer to “Essential SSGA: A Summary of State Street Global Advisors’ U.S.-Domiciled Commingled Funds, U.S.-Managed Separately Managed Accounts and Related Conflicts of Interest” for additional information on SSGA’s policy on proxy voting and the risk factors associated with the SSGA proxy voting program.

The availability of the SSGA proxy voting program is subject to any applicable regulatory, operational (including in respect of fractional voting rights), local market (including any applicable local restrictions on split voting), tax, cost or other constraints of the third party proxy voting or SSGA. SSGA reserves the right to suspend or cancel, in full or in part, the SSGA proxy voting program (in any one instance or more broadly), including with immediate effect, if required by applicable law or regulation or if SSGA otherwise considers that such action is appropriate. This may result in shares being voted in accordance with the SSGA’s proxy voting policy rather than in accordance with an investor’s choice of voting policy.


“Bloomberg®” and all Bloomberg Indices are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”) and have been licensed for use for certain purposes by SSGA. Bloomberg is not affiliated with SSGA, and Bloomberg does not approve, endorse, review, or recommend any SSGA product. Prior to 3/31/2022, all Bloomberg fixed income indices were known as Bloomberg Barclays fixed income indices.

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.