Equity Investments
We offer a breadth of equity solutions across a variety of capitalization ranges and styles in the U.S. equity market, as well as opportunities for international equity exposure to global, developed and emerging markets.
As a leader in passive investment management, we can provide your participants:
- An effective way to gain broad-based equity exposure
- Access to institutional-quality investment management
- Lower-cost investing, which can have a positive influence on their retirement outcomes
We are also able to deliver active management solutions for market segments where alpha makes sense, such as in some global or sector markets.
Setting the Bar in Passive Management
Passive investment management has been the foundation of SSgA's business since our inception in 1978.
In fact, we were a pioneer in the development of capitalization-weighted, institutional index funds, introducing our first passive equity strategy in 1978 and launching one of the first international index strategies in 1979. In 1991, we were the first firm to manage institutional indexed emerging market strategies.
Our objective with all of our passive equity strategies is to approximate the return of the appropriate benchmark. To that end, we use a proprietary portfolio management practice developed by SSgA specifically for the creation and maintenance of passive equity portfolios.
We can construct two types of portfolios—fully replicated and sampled/optimized.
Replication is typically used where the securities comprising the benchmark are readily available for purchase. This type of portfolio is designed to be a near mirror of the index.
When an index is too broad or the securities in the index are not available or the portfolio is too small, we may use a sampling or optimization approach that seeks to provide a return comparable to that of the benchmark.
For DC plans focused on risk management, lower cost and efficiency, passive investments can fit nicely into your plan's investment menu.
Is your equity lineup right for your participants?