The Strategy seeks an investment return that approximates as closely as practicable, before expenses, the performance of its benchmark index (the "Index") over the long term. The Strategy implements a screen that results in the inclusion in, or exclusion from, the Portfolio of securities of issuers based on specific ESG criteria (the "ESG Screen").
BENCHMARK: Russell 3000® Index
The Strategy is managed using an "indexing" investment approach, by which SSGA attempts to approximate, before expenses, the performance of the Index over the long term. Due to the nature of this particular strategy and asset class, it is unlikely SSGA will be able to invest in all of the securities comprising the Index, in approximately the same proportions as they are represented in the Index. As such, SSGA will typically employ a sampling or optimization technique to construct the portfolio in question. SSGA may also utilize other pooled investment vehicles, including those managed by SSGA and its affiliates, as substitutes for gaining exposure to securities or a group of securities in the Index. Securities may include common stocks, preferred stocks, depositary receipts, or other securities convertible into common stock. The Strategy may purchase securities in their initial public offerings ("IPOs").
The ESG Screen is provided by MSCI Inc. (or their successors or assigns) on a quarterly basis and is intended to screen out companies which significantly engage in producing or distributing adult entertainment, tobacco production, gambling, or conventional, biological, chemical or nuclear weapons production; or companies with any tie to abortion or abortifacients, or companies that manufacture contraceptive products, or which have any involvement in manufacturing and distribution of cannabis, or any tie to embryonic or fetal tissue stem cell research, or involvement in the manufacture of depleted uranium weapons, or companies that manufacture cluster munitions, landmines, or civilian firearms; or which have severe controversies or low ratings related to environment, fair lending, workforce diversity, or human rights or labor compliance.
From time to time securities are added to or removed from the Index. SSGA may sell securities that are represented in the Index, or purchase securities that are not yet represented in the Index, prior to or after their removal or addition to the Index.
The Strategy may at times purchase or sell index futures contracts, or options on those futures, or engage in other transactions involving the use of derivatives, in lieu of investment directly in the securities making up the Index or to enhance the Strategy's replication of the Index return. The Strategy's return may not match the return of the Index.
Note:
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell 3000® Index is a trademark of Frank Russell Company.
There are risks involved with investing, including possible loss of principal. You should refer to the Strategy's Disclosure Document (SDD) for a complete description of the risks of investing in the Strategy. Please contact SSGA's relationship management team for a copy of the SDD.
