Insights

Driving Access to Private Markets Exposures: The State Street Target Retirement IndexPlus Strategies

May 14, 2025

Hear from Brendan Curran, Head of US Retirement Strategy, and Apollo’s Steve Ulian, Head of DC and Retirement, on why the time is right for private market exposures in target date funds, and how inclusion of an allocation to Apollo Aligned Alternatives provides the potential to meaningfully improve participant outcomes.

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For institutional / professional investors use only.

State Street Global Advisors Worldwide Entities

Investing involves risk including the risk of loss of principal. Past performance is not a reliable indicator of future performance.

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 SSGA’s express written consent.

Diversification does not ensure a profit or guarantee against loss.

All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable but its accuracy is not guaranteed. 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.

This material is for educational purposes only; no investment, financial or tax advice or recommendation is provided. It does not suggest taking or refraining from any course of action and should not be used as basis for making any investment decision. It is not designed to be a recommendation of any specific insurance or investment product or strategy and it should not be considered a solicitation to buy or an offer to sell any security or insurance product.

The State Street Target Retirement IndexPlus Funds (“IndexPlus Funds”) are designed for investors expecting to retire around the year in each fund’s name. When selecting a target date fund or “vintage”, participants should consider if they anticipate retiring significantly earlier or later than age 65, even if such participants retire on or near a fund’s approximate target date. There may be other considerations relevant to fund selection and participants should select the fund that best meets their individual circumstances and investment goals.

The IndexPlus Funds’ asset allocation becomes increasingly conservative as they approach their target date and beyond, and the investment risks of the funds change over time as their asset allocation changes; however the allocation to private markets exposures does not vary across vintages or in the retirement fund. Once a target date fund reaches its target retirement date, it begins a five-year transition period to the retirement fund. Asset allocation does not guarantee a profit or protect against loss. An investment in the IndexPlus Funds is neither insured by the FDIC or any other governmental agency, nor guaranteed by SSGA or any of SSGA’s affiliates, including State Street Bank and Trust Company, or any other bank.

The IndexPlus Funds are bank-maintained collective investment trust maintained and managed by SSGA. State Street Global Advisors Trust Company is a limited purpose trust company established under the laws of the Commonwealth of Massachusetts. The IndexPlus Funds are available to certain eligible defined contribution plans. The IndexPlus Funds are not mutual funds.

This document may contain certain statements deemed to be forward-looking statements. All statements, other than historical facts, contained within this document that address activities, events or developments that State Street Global Advisors expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions and analyses made by State Street Global Advisors in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances, many of which are detailed herein. Such statements are subject to a number of assumptions, risks, uncertainties, many of which are beyond SSGA’s control. Please note that any such statements are not guarantees of any future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

Asset Allocation is a method of diversification which positions assets among major investment categories. Asset Allocation may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect against loss.

Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions

Bonds generally present less short-term risk and volatility than stocks but contain interest rate risk (as interest rates rise bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.

The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.

There are risks associated with investing in Real Assets and the Real Assets sector, including real estate, precious metals and natural resources. Investments can be significantly affected by events relating to these industries.

Generally, among asset classes, stocks are more volatile than bonds or short-term instruments. Government bonds and corporate bonds generally have more moderate short-term price fluctuations than stocks but provide lower potential long-term returns. US Treasury Bills maintain a stable value if held to maturity, but returns are generally only slightly above the inflation rate.

None of State Street Global Advisors or its affiliates (“SSGA”) are acting in a fiduciary capacity in connection with the provision of the information contained herein. SSGA’s role as a fiduciary with respect to the products and services described herein commences once State Street Global Advisors has been retained to act in a fiduciary capacity pursuant to a written agreement and receipt of a fee. Prior to such time, State Street Global Advisors is not undertaking to provide impartial investment advice or to give advice in a fiduciary capacity in connection with the sale or distribution of the products or services described herein. State Street Global Advisors has a financial interest in the sale of our investment products and services.

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. You should consult your tax and financial advisor.

Other than with respect to all statements and information contained herein related to Apollo Global Management, Inc. (together with its subsidiaries, “Apollo”) and Apollo Aligned Alternatives, including information provided to State Street Global Advisors upon which State Street Global Advisors has relied in creating these materials, Apollo has not made any independent verification, representation or warranty, expressed or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of any of the information contained herein and expressly disclaims any responsibility or liability therefore.

These materials contain information provided by Apollo to State Street Global Advisors, and/or information based on information provided by Apollo to State Street Global Advisors. State Street Global Advisors has not made any independent verification, representation or warranty, expressed or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of any provided to it by Apollo, and State Street Global Advisors expressly disclaims any responsibility or liability therefore.

Apollo Assets Under Management (“AUM”) - The assets of the funds, partnerships and accounts to which Apollo provides investment management, advisory, or certain other investment-related services, including, without limitation, capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. Our AUM equals the sum of:

1. the NAV, plus used or available leverage and/or capital commitments, or gross assets plus capital commitments, of the yield and certain hybrid funds, partnerships and accounts for which we provide investment management or advisory services, other than certain CLOs, CDOs, and certain perpetual capital vehicles, which have a fee-generating basis other than the mark-to-market value of the underlying assets; for certain perpetual capital vehicles in yield, gross asset value plus available financing capacity;

2. the fair value of the investments of the equity and certain hybrid funds, partnerships and accounts Apollo manages or advise, plus the capital that such funds, partnerships and accounts are entitled to call from investors pursuant to capital commitments, plus portfolio level financings;

3. the gross asset value associated with the reinsurance investments of the portfolio company assets Apollo manages or advises; and

4. the fair value of any other assets that Apollo manages or advises for the funds, partnerships and accounts to which Apollo provides investment management, advisory, or certain other investment-related services, plus unused credit facilities, including capital commitments to such funds, partnerships and accounts for investments that may require pre-qualification or other conditions before investment plus any other capital commitments to such funds, partnerships and accounts available for investment that are not otherwise included in the clauses above.

Apollo’s AUM measure includes Assets Under Management for which Apollo charges either nominal or zero fees. Apollo’s AUM measure also includes assets for which Apollo does not have investment discretion, including certain assets for which Apollo earns only investment-related service fees, rather than management or advisory fees. Apollo’s definition of AUM is not based on any definition of Assets Under Management contained in its governing documents or in any management agreements of the funds Apollo manages. Apollo considers multiple factors for determining what should be included in its definition of AUM. Such factors include but are not limited to (1) Apollo’s ability to influence the investment decisions for existing and available assets; (2) Apollo’s ability to generate income from the underlying assets in the funds it manages; and (3) the AUM measures that Apollo uses internally or believes are used by other investment managers. Given the differences in the investment strategies and structures among other alternative investment managers, Apollo’s calculation of AUM may differ from the calculations employed by other investment managers and, as a result, this measure may not be directly comparable to similar measures presented by other investment managers. Apollo’s calculation also differs from the manner in which its affiliates registered with the SEC report “Regulatory Assets Under Management” on Form ADV and Form PF in various ways.

Apollo uses AUM, Gross capital deployment and Dry powder as performance measurements of its investment activities, as well as to monitor fund size in relation to professional resource and infrastructure needs.

United States: State Street Global Advisors, One Iron Street, Boston, MA 02210-1641.

Web: www.ssga.com

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