Insights

State Street Target Retirement Mutual Funds

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:

Strategic index investment approach
Fully diversified underlying fund lineup
Graduated glidepath
“Through” glidepath

Click here for the full brochure.

28 October 2020

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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.

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

2771461.3.1.GBL.RTL

Exp: 10/31/2021

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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.

Images of NYSE Group, Inc. are used with permission of NYSE Group, Inc. Neither NYSE Group, Inc. nor its affiliated companies sponsor, approve of or endorse the contents of this program. Neither NYSE Group, Inc. nor its affiliated companies recommend or make any representation as to possible benefits from any securities or investments.

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