Indexed high yield is of increasing interest to investors:
Delivers Diversification & Transparent Outcomes
Structural developments in high yield markets have now made indexing in this complex exposure viable for sophisticated and experienced index managers.
Cost-Efficient Alternative to Active Indexing offers a cost-efficient, reliable and transparent alternative to gain exposure to high yield. It can complement the higher tracking, defensive styles, and the often lower liquidity, of active approaches.
Alpha generation has been on a downward trend in high yield with few managers outperforming consistently. Net of high active fees, alpha generation has become even more elusive.
ESG Incorporation Indexed solutions allow managers to efficiently incorporate ESG considerations in a systemic, transparent manner.
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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