The Index Plus Strategy seeks to outperform the S&P 500 by quantitatively choosing the best stocks, and the best industries within the universe. Portfolios are constructed to closely track the characteristics of the benchmark.
| The Index Plus Strategy seeks characteristics similar to those of the underlying benchmark using stocks that are highly ranked by our multi-factor and industry selection models. The multi-factor model includes: earnings estimates, fundamental ratio analysis, and sentiment factors. This quantitative process is designed to identify stocks that are undervalued by the market and possess superior earnings growth potential. In addition to the fundamental financial factors, we also employ market and corporate sentiment analysis to determine what the market and the corporation itself believes are the excess return prospects for each stock.Our industry selection process evaluates industries using factors generated from fundamental valuation characteristics, earnings-growth related, technical and economic signals. The factors used in this analysis represent major dimensions of risk and return and are not highly correlated. Our industry model is structured to emphasize preferred industries given existing market conditions. In the portfolio construction process, stock and industry selection are combined to create a portfolio of what we believe to be the best stocks in the most attractive industries. Industries are misweighted depending on our view of their relative attractiveness and potential for gain. This Strategy is diversified across sectors, and remains style and size neutral relative to the benchmark. Because the portfolio remains well diversified across all industries the portfolio characteristics are similar to those of the Index. Index Plus primarily invests in stocks selected from the Russell 1000 Index. In addition, it may also invest in equity derivatives and Standard & Poor's Depository Receipts to achieve equity exposure, or short-term instruments managed by State Street. The Strategy aims to be fully invested at all times. |
Geography of Investment:
United States
Base Currency:
USD
Capitalization:
Large
Style:
Core
Primary Benchmark:
S&P 500®
Return Target:
Benchmark Plus 50 to 100 bps
Securities Lending:
Yes
Investment Approach:
Active Enhanced
Asset Class:
Equity
Portfolio Turnover:
Low
Investment Vehicles
Institutional Pooled Fund
Prospectus Registered Fund
Separate Account
Customizable Components
Social Screens
Securities Lending
Tax Efficiency
Benchmark
Use of Futures
Security Exposure
Return Drivers
Security Selection
Industry Selection
