Prospectus
State
Street Institutional
Investment Trust
Investment Trust
State Street
Target Retirement 2020 Fund
Class I (SSBNX) Class K (SSBOX) Class R3 (SSADX)
Class I (SSBNX) Class K (SSBOX) Class R3 (SSADX)
State Street
Target Retirement 2025 Fund
Class I (SSBRX) Class K (SSBSX) Class R3 (SSAHX)
Class I (SSBRX) Class K (SSBSX) Class R3 (SSAHX)
State Street
Target Retirement 2030 Fund
Class I (SSBWX) Class K (SSBYX) Class R3 (SSAJX)
Class I (SSBWX) Class K (SSBYX) Class R3 (SSAJX)
State Street
Target Retirement 2035 Fund
Class I (SSCJX) Class K (SSCKX) Class R3 (SSAZX)
Class I (SSCJX) Class K (SSCKX) Class R3 (SSAZX)
State Street
Target Retirement 2040 Fund
Class I (SSCNX) Class K (SSCQX) Class R3 (SSAKX)
Class I (SSCNX) Class K (SSCQX) Class R3 (SSAKX)
State Street
Target Retirement 2045 Fund
Class I (SSDDX) Class K (SSDEX) Class R3 (SSAOX)
Class I (SSDDX) Class K (SSDEX) Class R3 (SSAOX)
State Street
Target Retirement 2050 Fund
Class I (SSDJX) Class K (SSDLX) Class R3 (SSAUX)
Class I (SSDJX) Class K (SSDLX) Class R3 (SSAUX)
State Street
Target Retirement 2055 Fund
Class I (SSDOX) Class K (SSDQX) Class R3 (SSAWX)
Class I (SSDOX) Class K (SSDQX) Class R3 (SSAWX)
State Street
Target Retirement 2060 Fund
Class I (SSDWX) Class K (SSDYX) Class R3 (SSAYX)
Class I (SSDWX) Class K (SSDYX) Class R3 (SSAYX)
State Street
Target Retirement 2065 Fund
Class I (SSFJX) Class K (SSFKX) Class R3 (SSFPX)
Class I (SSFJX) Class K (SSFKX) Class R3 (SSFPX)
State Street
Target Retirement Fund
Class I (SSFNX) Class K (SSFOX) Class R3 (SSFQX)
Class I (SSFNX) Class K (SSFOX) Class R3 (SSFQX)
The U.S.
Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this Prospectus. Any
representation to the contrary is a criminal offense.
An investment in
any of the Funds offered by this Prospectus is not a bank deposit and is not
insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
Each Fund may
offer multiple classes of shares. This Prospectus covers only the Class I, Class
K and Class R3 Shares of the applicable Funds.
State
Street Target Retirement 2020 Fund
Investment
Objective
The
investment objective of the State Street Target Retirement 2020 Fund (the
“Target Retirement
2020 Fund” or the
“Fund”) is to seek
capital growth and income over the long
term.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell shares of the Fund (“Fund Shares”). You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries which
are not reflected in the tables and examples
below.
Shareholder
Fees (fees paid
directly from your investment)
|
|
Class
I |
Class
K |
Class
R3 |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the lower of the sale
proceeds or the
original
offering price) |
|
|
|
Annual
Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment)
|
|
Class
I |
Class
K |
Class
R3 |
|
Management
Fee |
|
|
|
|
Distribution
and/or Shareholder Service (12b-1) Fees |
|
|
|
|
Other
Expenses1
|
|
|
|
|
Acquired
Fund Fees and Expenses |
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
Less
Fee Waivers and/or Expense Reimbursements2
|
( |
( |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
|
|
1
2
Example:
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell or hold all of your Fund Shares at
the end of those periods. The Example also assumes that your investment has a 5%
return each year and that the
Fund's operating expenses remain the same. The calculation of costs for the
one-year period takes into account the
effect of any current contractual fee waivers and/or reimbursements; and the
calculation of costs for the remaining periods
takes such fee waivers and/or reimbursements into account only for the first
year of each such period. Although your
actual costs may be higher or lower, based on these assumptions your costs would
be:
1
|
|
1
year |
3
years |
5
years |
10
years |
|
Class
I |
$ |
$ |
$ |
$ |
|
Class
K |
$ |
$ |
$ |
$ |
|
Class
R3 |
$ |
$ |
$ |
$ |
Portfolio
Turnover:
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns
over” its portfolio). A
higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Example, affect the Fund's
performance. During the most
recent fiscal year, the Fund's portfolio turnover rate was 22 % of the average value of
its portfolio.
Principal
Investment Strategies
SSGA
Funds Management, Inc. (“SSGA
FM” or the
“Adviser”), the investment
adviser to the Fund, manages the Target Retirement 2020
Fund using a proprietary asset allocation strategy. The Fund is a “fund of
funds” that invests in a
combination of mutual funds
and ETFs sponsored by the Adviser or its affiliates (the “Underlying
Funds”). The Underlying
Funds may invest
in a wide variety of asset classes, including equity and fixed-income securities
of issuers anywhere in the world,
including emerging markets investments, and including, among others, high yield,
commodity, and real estate investments. The
Underlying Funds may invest in obligations of domestic U.S. issuers, non-U.S.
issuers, or both.
The
Fund is intended for investors expecting to retire around the year 2020 and who
are likely to stop making new investments in the Fund at
that time. The Fund is designed for an investor who plans to withdraw the value
of the investor's account gradually
following that date. The Adviser seeks to optimize the Fund's “glide
path” for the wealth
accumulation, wealth
preservation, and income generation phases of retirement planning and includes
adjustments in the critical years immediately
preceding and following the retirement date. For example, a Fund with a target
retirement date far into the future will
typically invest a greater portion of its assets in asset classes with higher
risk profiles and the potential for higher returns.
As the target date for a Fund approaches, the Adviser will adjust the asset
allocation and risk profile of the Fund – its
glide path – to what is generally seen to be a more conservative approach to
reduce (but not to eliminate) risk by
increasing the allocation to asset classes that have historically been subject
to lower levels of volatility. A fund intended for
investors who have already achieved retirement age would typically invest a
greater portion of its assets in bonds and cash
items, with a relatively smaller allocation to equity securities.
The
Underlying Funds employ a wide array of investment styles. For example, the
Underlying Funds can buy and sell common stocks of
companies of any size, corporate bonds of varying credit quality, U.S.
government and agency bonds, mortgage- and
asset-backed securities, commodities, real estate and money market instruments.
They may hold U.S. or non-U.S.
investments. The Underlying Funds may use derivative instruments of any kind,
including futures contracts, forward currency
contracts, credit default swaps, interest rate swaps and commodities-related
derivatives. Derivatives may be used by an
Underlying Fund for hedging or risk management purposes, as a substitute for
direct investment, or otherwise to seek
to enhance the Underlying Fund's total
return.
2
The
glide path depicted in the chart below shows how the Fund's strategic target
allocations among asset classes are expected
generally to place more emphasis on fixed income investments and less on equity
investments as the target retirement date
approaches.
The
glide path shows the Fund's long term strategic target allocations. The Fund's
actual allocations may differ. The Adviser
periodically reviews the Fund's target asset allocations and may, at any time,
in its discretion, change the target asset allocations
or deviate from the target asset allocations when it believes doing so is
appropriate to pursue the Fund's investment
objective. The glide path is presented only as an illustration of how the
process of re-allocation occurs as the Fund approaches
its target date.
The
following table shows the Fund's strategic target allocations to the Underlying
Funds as of the date of this Prospectus.:
|
Underlying
Funds |
Target
Retirement
2020
Fund |
|
State
Street Equity 500 Index II Portfolio |
17.66% |
|
State
Street Small/Mid Cap Equity Index Portfolio |
3.47% |
|
State
Street Global All Cap Equity ex-U.S. Index Portfolio |
13.25% |
|
State
Street Aggregate Bond Index Portfolio |
21.19% |
|
SPDR
Bloomberg 1-10 Year TIPS ETF |
18.00% |
|
SPDR
Bloomberg High Yield Bond ETF |
7.00% |
|
SPDR
Dow Jones Global Real Estate ETF |
5.00% |
|
SPDR
Portfolio Long Term Treasury ETF |
0.00% |
|
SPDR
Portfolio Short Term Treasury ETF |
11.55% |
|
SPDR
Portfolio Short Term Corporate Bond ETF |
2.89% |
The
Fund's actual allocations are expected to differ over time. The Adviser
periodically reviews the Fund's target allocations to underlying
investment options and may, at any time, in its discretion, change the target
allocations or deviate from the target
allocations when it believes doing so is appropriate to pursue the Fund's
investment objective. The Adviser
3
may
modify the selection of Underlying Funds from time to time, and may invest in
other Underlying Funds, including any Underlying Funds
that may be created in the future. The table is presented for illustrative
purposes only. More current information
regarding the Fund's allocations may be available on its website:
www.ssga.com.
Principal
Risks
The
Fund is subject to the following principal risks. You could lose money by investing in the
Fund. Certain risks relating to instruments
and strategies used in the management of the Fund are placed first. The
significance of any specific risk to an investment
in the Fund will vary over time, depending on the composition of the Fund's
portfolio, market conditions, and other
factors. You should read all of the risk information presented below carefully,
because any one or more of these risks may
result in losses to the Fund. An investment in the
Fund is subject to investment risks, including possible loss of
principal, is not a deposit in a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any
other government agency. The Fund may not
achieve its investment objective. An investment in the
Fund is not guaranteed, and you may experience losses, including losses near,
at, or after the target date. There is no
guarantee that the Fund will provide adequate portfolio growth or income at and
through your retirement. The Fund is not
intended to be a complete investment program, but rather is intended for
investment as part of a diversified
investment portfolio. Investors should consult their own advisers as to the role
of the Fund in their overall investment
programs. Except as otherwise stated, references in this section to “the
Fund” or “a
Fund” may relate to the
Fund, one or more
Underlying Funds, or both. The risks described below may arise out of the Fund's
direct investments or the Fund's
investments in one or more of the Underlying Funds. All or a portion of the
Underlying Funds are managed pursuant to a
passive investment strategy, while the Fund is managed pursuant to an active
investment strategy. You will find
additional information about each Underlying Fund's risks in its prospectus and
SAI.
Asset
Allocation Risk: The Fund's
investment performance depends upon the successful allocation by the Adviser
of
the Fund's assets among asset classes, geographical regions, industry sectors,
and specific issuers and investments. There is no
guarantee that the Adviser's allocation techniques and decisions will produce
the desired results.
Risk
of Investment in Other Pools: When the Fund
invests in another pooled investment vehicle, it is exposed to the risk that the
other pool will not perform as expected and is exposed indirectly to all of the
risks applicable to an investment in
such other pool. The investment policies of the other pool may not be the same
as those of the Fund; as a result, an
investment in the other pool may be subject to additional or different risks
than those to which the Fund is typically
subject. The Fund bears its proportionate share of the fees and expenses of any
pool in which it invests. The
Adviser or an affiliate may serve as investment adviser to a pool in which the
Fund may invest, leading to potential
conflicts of interest. It is possible that other clients of the Adviser or its
affiliates will purchase or sell interests in a
pool sponsored or managed by the Adviser or its affiliates at prices and at
times more favorable than those at which
the Fund does so.
Target
Date Assumptions Risk: This is the risk
that assumptions and forecasts used by the Adviser in developing the Fund's asset
allocation glide path are not in line with actual future investment returns and
participant savings activities, which
could result in losses near, at, or after the target date year or could result
in the Fund not providing adequate income
at and through retirement.
Longevity
Risk: This is the risk
that you will outlive your retirement assets.
Below
Investment-Grade Securities Risk: Lower-quality
debt securities (“high
yield” or “junk” bonds) are
considered predominantly
speculative, and can involve a substantially greater risk of default than higher
quality debt securities. Issuers of
lower-quality debt securities may have substantially greater risk of insolvency
or bankruptcy than issuers of
higher-quality debt securities. They can be illiquid, and their values can have
significant volatility and may decline
significantly over short periods of time. Lower-quality debt securities tend to
be more sensitive to adverse news about the
issuer, or the market or economy in general.
Commodities
Risk: Commodity prices
can have significant volatility, and exposure to commodities can cause the
net
asset value (“NAV”) of Fund Shares
to decline or fluctuate in a rapid and unpredictable manner. A liquid
secondary market may not
exist for certain commodity investments, which may make it difficult for the
Fund to sell them at a desirable price
or at the price at which it is carrying
them.
4
Counterparty
Risk: The Fund will be
subject to credit risk with respect to the counterparties with which the Fund
enters into
derivatives contracts, repurchase agreements, reverse repurchase agreements, and
other transactions. If a counterparty
fails to meet its contractual obligations, the Fund may be unable to terminate
or realize any gain on the investment or
transaction, or to recover collateral posted to the counterparty, resulting in a
loss to the Fund. If the Fund holds
collateral posted by its counterparty, it may be delayed or prevented from
realizing on the collateral in the event of a
bankruptcy or insolvency proceeding relating to the
counterparty.
Currency
Risk: The value of the
Fund's assets may be affected favorably or unfavorably by currency exchange
rates, currency
exchange control regulations, and delays, restrictions or prohibitions on the
repatriation of foreign currencies.
Foreign currency exchange rates may have significant volatility, and changes in
the values of foreign currencies
against the U.S. dollar may result in substantial declines in the values of the
Fund's assets denominated in foreign
currencies.
Debt
Securities Risk: The values of
debt securities may increase or decrease as a result of the following: market
fluctuations,
changes in interest rates, actual or perceived inability or unwillingness of
issuers, guarantors or liquidity providers to
make scheduled principal or interest payments, or illiquidity in debt securities
markets. To the extent that interest
rates rise, certain underlying obligations may be paid off substantially slower
than originally anticipated and the value of
those securities may fall sharply. A rising interest rate environment may cause
the value of the Fund's fixed
income securities to decrease, an adverse impact on the liquidity of the Fund's
fixed income securities, and increased
volatility of the fixed income markets. During periods when interest rates are
at low levels, the Fund's yield can be low,
and the Fund may have a negative yield (i.e., it may lose money on an operating
basis). To the extent that
interest rates fall, certain underlying obligations may be paid off
substantially faster than originally anticipated. If the principal
on a debt obligation is prepaid before expected, the prepayments of principal
may have to be reinvested in
obligations paying interest at lower rates. During periods of falling interest
rates, the income received by the Fund may
decline. Changes in interest rates will likely have a greater effect on the
values of debt securities of longer
durations. Returns on investments in debt securities could trail the returns on
other investment options, including
investments in equity securities. The U.S. Federal Reserve has been engaged in
an aggressive campaign to raise interest
rates in an effort to combat historically high levels of inflation. Interest
rate increases may continue. High levels of
inflation and/or a significantly changing interest rate environment can lead to
heightened levels of volatility and
reduced liquidity.
Depositary
Receipts Risk: Investments in
depositary receipts may be less liquid and more volatile than the
underlying securities in
their primary trading market. If a depositary receipt is denominated in a
different currency than its underlying
securities, the Fund will be subject to the currency risk of both the investment
in the depositary receipt and the
underlying security. Holders of depositary receipts may have limited or no
rights to take action with respect to the underlying
securities or to compel the issuer of the receipts to take action. The prices of
depositary receipts may differ from
the prices of securities upon which they are based. To the extent the Fund
invests in depositary receipts based on
securities included in the Index, such differences in prices may increase index
tracking risk.
Derivatives
Risk: Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a
derivative transaction will result in a much greater loss than the principal
amount invested, that changes in the value of a
derivative transaction may not correlate perfectly with the underlying asset,
and that the Fund may not be able to
close out a derivative transaction at a favorable time or price. The
counterparty to a derivatives contract may be unable or
unwilling to make timely settlement payments, return the Fund's margin, or
otherwise honor its obligations.
A derivatives transaction may not behave in the manner anticipated by the
Adviser or may not have the effect on the
Fund anticipated by the
Adviser.
Emerging
Markets Risk: Risks of
investing in emerging markets include, among others, greater political and
economic instability,
greater volatility in currency exchange rates, less developed securities
markets, possible trade barriers, currency
transfer restrictions, a more limited number of potential buyers and issuers, an
emerging market country's dependence on
revenue from particular commodities or international aid, less governmental
supervision and regulation,
unavailability of currency hedging techniques, differences in auditing and
financial reporting standards, less stringent
investor protection and disclosure standards, less developed public health
systems, and less developed legal
systems. There is also the potential for unfavorable action such as
expropriation, nationalization, embargo, and acts
of war. The securities of emerging market companies may trade less frequently
and in smaller volumes than more
widely held securities. Market disruptions or substantial market corrections may
limit very significantly the liquidity of
securities of certain companies in a particular country or geographic region, or
of all compa
5
nies
in the country or region. The Fund may be unable to liquidate its positions in
such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. These risks are generally
greater for investments in frontier market
countries, which typically have smaller economies or less developed capital
markets than traditional emerging market
countries.
Equity
Investing Risk: The market
prices of equity securities owned by the Fund may go up or down, sometimes
rapidly or
unpredictably. The value of a security may decline for a number of reasons that
may directly relate to the issuer and also
may decline due to general industry or market conditions that are not
specifically related to a particular company. In
addition, equity markets tend to move in cycles, which may cause stock prices to
fall over short or extended
periods of time.
Geographic
Focus Risk: The performance
of a fund that is less diversified across countries or geographic regions
will
be closely tied to market, currency, economic, political, environmental, or
regulatory conditions and developments in the countries
or regions in which the fund invests, and may be more volatile than the
performance of a more geographically-diversified
fund.
Income
Risk: The Fund's
income may decline due to falling interest rates or other factors. Issuers of
securities held by the Fund may
call or redeem the securities during periods of falling interest rates, and the
Fund would likely be required to
reinvest in securities paying lower interest rates. If an obligation held by the
Fund is prepaid, the Fund may have to
reinvest the prepayment in other obligations paying income at lower
rates.
Indexing
Strategy/Index Tracking Risk: The Fund is
managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of
the actual securities comprising the Index. This differs from an
actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed
using an active investment strategy. The structure and composition of the Index
will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. While the Adviser
seeks to track the performance of the Index (i.e., achieve a high
degree of correlation with the Index), the
Fund's return may not match the return of the Index. The Fund incurs a number of
operating expenses not applicable to
the Index, and incurs costs in buying and selling securities. In addition, the
Fund may not be fully invested at
times, generally as a result of cash flows into or out of the Fund or reserves
of cash held by the Fund to meet redemptions.
The Adviser may attempt to replicate the Index return by investing in fewer than
all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return
and that of the Index.
Inflation
Risk: Inflation risk
is the risk that the value of assets or income from investments will be less in
the future as inflation
decreases the value of money. As inflation increases, the values of a fund's
assets can decline. Inflation rates may change
frequently and drastically as a result of various factors and the Fund's
investments may not keep pace with
inflation, which may result in losses to Fund investors or adversely affect the
real value of shareholders' investments in
the Fund. Recently, inflation levels have been at their highest point in
nearly 40 years, and the Federal Reserve has
begun an aggressive campaign to raise certain benchmark interest rates in an
effort to combat inflation. As
such, fixed income securities markets may experience heightened levels of
interest rate volatility and liquidity
risk.
Inflation-Indexed
Securities Risk: The principal
amount of an inflation-indexed security typically increases with inflation and
decreases with deflation, as measured by a specified index. It is possible that,
in a period of declining inflation rates,
the Fund could receive at maturity less than the initial principal amount of an
inflation-indexed security. Changes in the
values of inflation-indexed securities may be difficult to predict, and it is
possible that an investment in such
securities will have an effect different from that anticipated by the
Adviser.
IPO
Risk: The Fund may at
times have the opportunity to invest in securities offered in initial public
offerings (“IPOs”). IPOs involve
companies that have no public operating history and therefore entail more risk
than established public companies. The
prices of securities offered in IPOs can have significant volatility and the
Fund may lose money on an investment in
such securities. IPO investments in which other clients of the Adviser invest
may not be made available to the
Fund.
6
Large-Capitalization
Securities Risk: Returns on
investments in securities of large companies could trail the returns
on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as
smaller and mid-sized companies to competitive challenges or to changes in
business, product, financial, or other
market conditions. Larger companies may not be able to maintain growth at the
high rates that may be achieved by
well-managed smaller and mid-sized
companies.
Large
Shareholder Risk: To the extent a
large proportion of the shares of the Fund are held by a small number of
shareholders (or
a single shareholder), including funds or accounts over which the Adviser has
investment discretion, the Fund is
subject to the risk that these shareholders will purchase or redeem Fund Shares
in large amounts rapidly or
unexpectedly, including as a result of an asset allocation decision made by the
Adviser. These transactions could adversely
affect the ability of the Fund to conduct its investment
program.
Liquidity
Risk: Lack of a ready
market, stressed market conditions, or restrictions on resale may limit the
ability of the Fund to sell
a security at an advantageous time or price or at all. Illiquid investments may
trade at a discount from comparable, more
liquid investments and may be subject to wide fluctuations in market value.
Illiquidity of the Fund's holdings may also
limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations on investments in any illiquid investments and/or the difficulty in
purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Management
Risk: The Fund is
actively managed. The Adviser's judgments about the attractiveness, relative
value, or potential
appreciation of a particular sector, security, commodity or investment strategy
may prove to be incorrect, and may cause the
Fund to incur losses. There can be no assurance that the Adviser's investment
techniques and decisions will
produce the desired
results.
Market
Risk: The Fund's
investments are subject to changes in general economic conditions, general
market fluctuations and the risks
inherent in investment in securities markets. Investment markets can be volatile
and prices of investments can
change substantially due to various factors including, but not limited to,
economic growth or recession, changes in
interest rates, inflation, changes in the actual or perceived creditworthiness
of issuers, and general market liquidity.
The Fund is subject to the risk that geopolitical events will disrupt securities
markets and adversely affect global
economies and markets. Local, regional or global events such as war, military
conflicts, acts of terrorism, natural
disasters, the spread of infectious illness or other public health issues, or
other events could have a significant impact on the
Fund and its investments.
Modeling
Risk: The Adviser uses
quantitative models in an effort to enhance returns and manage risk. Any
imperfections, errors or
limitations in these models could limit any benefit to the Fund from the use of
the models, or could result in
incorrect outputs or in investment outcomes different from or opposite to those
expected or desired by the Adviser. There
can be no assurance that the models will behave as expected in all market
conditions. In addition, computer
programming used to create quantitative models, or the data on which such models
operate, might contain one or more
errors.
Mortgage-Related
and Other Asset-Backed Securities Risk: Investments in
mortgage-related and other asset-backed securities are
subject to the risk of significant credit downgrades, illiquidity, and defaults
to a greater extent than many other
types of fixed-income investments. The liquidity of mortgage-related and
asset-backed securities may change over
time. During periods of falling interest rates, mortgage- and asset-backed
securities may be called or prepaid, which
may result in the Fund having to reinvest proceeds in other investments at a
lower interest rate. During periods of
rising interest rates, the average life of mortgage- and asset-backed securities
may extend, which may lock in a
below-market interest rate, increase the security's duration and interest rate
sensitivity, and reduce the value of the
security. Enforcing rights against the underlying assets or collateral may be
difficult, and the underlying assets or
collateral may be insufficient if the issuer
defaults.
Non-U.S.
Securities Risk: Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks
not present in domestic investments. There may be less information publicly
available about a non-U.S. entity than
about a U.S. entity, and many non-U.S. entities are not subject to accounting,
auditing, legal and financial report
standards comparable to those in the United States. Further, such entities
and/or their securities may be subject to
risks associated with currency controls; expropriation; changes in tax policy;
greater market volatility; differing
securities market structures; higher transaction costs; and various
administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. Securities
traded on foreign mar
7
kets
may be less liquid (harder to sell) than securities traded domestically. Foreign
governments may impose restrictions on the
repatriation of capital to the U.S. In addition, to the extent that the
Fund buys securities denominated in a foreign
currency, there are special risks such as changes in currency exchange rates and
the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of
countries, events in those countries will have a more significant impact on the
Fund. Investments in depositary
receipts may be less liquid and more volatile than the underlying shares in
their primary trading
market.
Real
Estate Sector Risk: An investment in
a real property company may be subject to risks similar to those
associated with direct
ownership of real estate, including, by way of example, the possibility of
declines in the value of real estate,
losses from casualty or condemnation, and changes in local and general economic
conditions, supply and demand,
interest rates, environmental liability, zoning laws, regulatory limitations on
rents, property taxes, and operating
expenses. Some real property companies have limited diversification because they
invest in a limited number of properties, a
narrow geographic area, or a single type of
property.
REIT
Risk: Real estate
investment trusts (“REITs”) are subject to
the risks associated with investing in the securities of real property
companies. In particular, REITs may be affected by changes in the values of the
underlying properties that they own or
operate. Further, REITs are dependent upon specialized management skills, and
their investments may be
concentrated in relatively few properties, or in a small geographic area or a
single property type. REITs are also subject
to heavy cash flow dependency and, as a result, are particularly reliant on the
proper functioning of capital markets.
A variety of economic and other factors may adversely affect a lessee's ability
to meet its obligations to a REIT. In
the event of a default by a lessee, the REIT may experience delays in enforcing
its rights as a lessor and may incur
substantial costs associated in protecting its investments. In addition, a REIT
could fail to qualify for favorable
regulatory treatment.
Restricted
Securities Risk: The Fund may
hold securities that have not been registered for sale to the public under
the
U.S. federal securities laws. There can be no assurance that a trading market
will exist at any time for any particular restricted
security. Limitations on the resale of these securities may have an adverse
effect on their marketability, and may prevent
the Fund from disposing of them promptly at reasonable prices. The Fund may have
to bear the expense of
registering the securities for resale and the risk of substantial delays in
effecting the registration. Also, restricted
securities may be difficult to value because market quotations may not be
readily available, and the securities may
have significant
volatility.
Small-,
Mid- and Micro-Capitalization Securities Risk: The securities
of small-, mid- and micro-capitalization companies may be
more volatile and may involve more risk than the securities of larger companies.
These companies may have limited
product lines, markets or financial resources, may lack the competitive strength
of larger companies, and may depend
on a few key employees. In addition, these companies may have been recently
organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller
volumes than more widely held securities. Some securities of smaller issuers may
be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such
securities at any time, or at a favorable price, in order to meet the Fund's
obligations. Returns on investments in securities of
small-, mid- and micro-capitalization companies could trail the returns on
investments in securities of larger
companies.
Unconstrained
Sector Risk: The Fund may
invest a substantial portion of its assets within one or more economic
sectors or
industries, which may change from time to time. Greater investment focus on one
or more sectors or industries
increases the potential for volatility and the risk that events negatively
affecting such sectors or industries could reduce
returns, potentially causing the value of the Fund's Shares to decrease, perhaps
significantly.
U.S.
Government Securities Risk: Certain U.S.
government securities are supported by the full faith and credit of the United
States; others are supported by the right of the issuer to borrow from the U.S.
Treasury; others are supported by the
discretionary authority of the U.S. government to purchase the agency's
obligations; and still others are supported
only by the credit of the issuing agency, instrumentality, or enterprise.
Although U.S. government-sponsored enterprises such
as the Federal Home Loan Mortgage Corporation (“Freddie
Mac”) and the Federal
National Mortgage
Association (“Fannie
Mae”) may be
chartered or sponsored by Congress, they are not funded by
Congressional appropriations,
and their securities are not issued by the U.S. Treasury, are not supported by
the full faith and credit of the
U.S. government, and involve increased credit
risks.
8
U.S.
Treasury Obligations Risk: U.S. Treasury
obligations may differ from other fixed income securities in their interest rates,
maturities, times of issuance and other characteristics. Similar to other
issuers, changes to the financial condition or
credit rating of the U.S. government may cause the value of the Fund's U.S.
Treasury obligations to decline.
Valuation
Risk: Some portfolio
holdings, potentially a large portion of the Fund's investment portfolio, may be
valued on the basis of
factors other than market quotations. This may occur more often in times of
market turmoil or reduced
liquidity. There are multiple methods that can be used to value a portfolio
holding when market quotations are not readily
available. The value established for any portfolio holding at a point in time
might differ from what would be produced
using a different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued
using techniques other than market quotations, including “fair
valued” securities, may
be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance
that the Fund could sell or close out a portfolio position for the value
established for it at any time, and it is
possible that the Fund would incur a loss because a portfolio position is sold
or closed out at a discount to the valuation
established by the Fund at that time. Investors who purchase or redeem Fund
Shares on days when the Fund is
holding fair-valued investments may receive fewer or more shares or lower or
higher redemption proceeds than they would
have received if the Fund had not fair-valued the holding(s) or had used a
different valuation methodology.
When-Issued,
TBA and Delayed Delivery Securities Risk: The Fund may
purchase securities on a when-issued, to-be-announced
(“TBA”) or delayed
delivery basis and may purchase securities on a forward commitment basis.
The
purchase price of the securities is typically fixed at the time of the
commitment, but delivery and payment can take place a
month or more after the date of the commitment. At the time of delivery of the
securities, the value may be more or less
than the purchase or sale price. Purchase of securities on a when-issued, TBA,
delayed delivery, or forward
commitment basis may give rise to investment leverage, and may result in
increased volatility of the Fund's NAV. Default by,
or bankruptcy of, a counterparty to a when-issued, TBA or delayed delivery
transaction would expose the Fund to
possible losses because of an adverse market action, expenses or delays in
connection with the purchase or sale of the
pools specified in such transaction. Rule amendments proposed by the Financial
Industry Regulatory Authority, Inc.
may impose mandatory margin requirements for certain types of when-issued, TBA
delayed delivery or
forward commitment transactions, with limited exceptions. Such transactions
require mandatory collateralization which may
increase the cost of such transactions and impose added operational
complexity.
Performance
Annual
Total Returns (years ended
12/31)
9
Average
Annual Total Returns (for periods
ended 12/31/22)
|
|
One
Year |
Five
Years |
Since
Inception |
Inception
Date |
|
Class
I |
|
|
|
|
|
Return
Before Taxes |
- |
|
|
|
|
Return
After Taxes on Distributions |
- |
|
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
- |
|
|
|
|
Class
K Returns Before Taxes |
- |
|
|
|
|
S&P
500 Index (reflects no deduction for fees, expenses or
taxes) |
- |
|
|
|
|
State
Street Target Retirement 2020 Composite Index (reflects no
deduction
for fees, expenses or taxes) |
- |
|
|
|
Investment
Adviser
SSGA FM serves as
the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Seamus Quinn and Michael Narkiewicz. Mr.
Quinn has served as a portfolio manager of the Fund since 2022 and Mr.
Narkiewicz has served as a portfolio manager
of the Fund since 2018.
Seamus
Quinn, CFA, CAIA, is a Principal of the Adviser and a Portfolio Manager in the
Investment Solutions Group. He joined the
Adviser in 2012.
Michael
Narkiewicz is a Vice President of the Adviser and a Senior Portfolio Manager in
the Investment Solutions Group. He joined the
Adviser in 2013.
Purchase
and Sale of Fund Shares
Purchase
Minimums
The
Fund's initial and subsequent investment minimums generally are as follows,
although the Fund may reduce or waive the minimums in
some cases.
|
Class
I |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
|
Class
K |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
|
Class
R3 |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
You may purchase
or redeem Fund Shares on any day the Fund is open for business.
Written
Requests and Wire Transfers. You may
purchase or redeem Fund Shares by written request or wire transfer.
10
Written requests
should be sent to:
By
Mail:
State Street
Funds
P.O. Box 219737
Kansas City, MO 64121-9737
P.O. Box 219737
Kansas City, MO 64121-9737
By
Overnight/Registered, Express, Certified Mail:
State Street
Funds
430 W 7th Street Suite 219737
Kansas City, MO 64105-1407
430 W 7th Street Suite 219737
Kansas City, MO 64105-1407
By
Intermediary:
If
you wish to purchase or redeem Fund Shares through a broker, bank or other
financial intermediary (“Financial
Intermediary”), please contact
that Financial Intermediary directly. Your Financial Intermediary may have
different or additional requirements for
opening an account and/or for the processing of purchase and redemption orders,
or may be closed at times
when the Fund is open. Financial Intermediaries may contact SS&C GIDS,
Inc. at (877) 332-6207 or via email at
nsccresearch@dstsystems.com with questions.
Tax
Information
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan or IRA.
Any withdrawals made from such
tax-advantaged arrangement may be taxable to you.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other Financial Intermediary
(such as a bank), the Adviser or its affiliates may
pay the Financial Intermediary for certain activities related to the Fund,
including educational training programs, conferences, the
development of technology platforms and reporting systems, or other services
related to the sale or promotion
of the Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your Financial
Intermediary's website for more information.
11
State
Street Target Retirement 2025 Fund
Investment
Objective
The
investment objective of the State Street Target Retirement 2025 Fund (the
“Target Retirement
2025 Fund” or the
“Fund”) is to seek
capital growth and income over the long
term.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell shares of the Fund (“Fund Shares”). You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries which
are not reflected in the tables and examples
below.
Shareholder
Fees (fees paid
directly from your investment)
|
|
Class
I |
Class
K |
Class
R3 |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the lower of the sale
proceeds or the
original
offering price) |
|
|
|
Annual
Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment)
|
|
Class
I |
Class
K |
Class
R3 |
|
Management
Fee |
|
|
|
|
Distribution
and/or Shareholder Service (12b-1) Fees |
|
|
|
|
Other
Expenses1
|
|
|
|
|
Acquired
Fund Fees and Expenses |
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
Less
Fee Waivers and/or Expense Reimbursements2
|
( |
( |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
|
|
1
2
Example:
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell or hold all of your Fund Shares at
the end of those periods. The Example also assumes that your investment has a 5%
return each year and that the
Fund's operating expenses remain the same. The calculation of costs for the
one-year period takes into account the
effect of any current contractual fee waivers and/or reimbursements; and the
calculation of costs for the remaining periods
takes such fee waivers and/or reimbursements into account only for the first
year of each such period. Although your
actual costs may be higher or lower, based on these assumptions your costs would
be:
12
|
|
1
year |
3
years |
5
years |
10
years |
|
Class
I |
$ |
$ |
$ |
$ |
|
Class
K |
$ |
$ |
$ |
$ |
|
Class
R3 |
$ |
$ |
$ |
$ |
Portfolio
Turnover:
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns
over” its portfolio). A
higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Example, affect the Fund's
performance. During the most
recent fiscal year, the Fund's portfolio turnover rate was 16 % of the average value of
its portfolio.
Principal
Investment Strategies
SSGA
Funds Management, Inc. (“SSGA
FM” or the
“Adviser”), the investment
adviser to the Fund, manages the Target Retirement 2025
Fund using a proprietary asset allocation strategy. The Fund is a “fund of
funds” that invests in a
combination of mutual funds
and ETFs sponsored by the Adviser or its affiliates (the “Underlying
Funds”). The Underlying
Funds may invest
in a wide variety of asset classes, including equity and fixed-income securities
of issuers anywhere in the world,
including emerging markets investments, and including, among others, high yield,
commodity, and real estate investments. The
Underlying Funds may invest in obligations of domestic U.S. issuers, non-U.S.
issuers, or both.
The
Fund is intended for investors expecting to retire around the year 2025 and who
are likely to stop making new investments in the Fund at
that time. The Fund is designed for an investor who plans to withdraw the value
of the investor's account gradually
following that date. The Adviser seeks to optimize the Fund's “glide
path” for the wealth
accumulation, wealth
preservation, and income generation phases of retirement planning and includes
adjustments in the critical years immediately
preceding and following the retirement date. For example, a Fund with a target
retirement date far into the future will
typically invest a greater portion of its assets in asset classes with higher
risk profiles and the potential for higher returns.
As the target date for a Fund approaches, the Adviser will adjust the asset
allocation and risk profile of the Fund – its
glide path – to what is generally seen to be a more conservative approach to
reduce (but not to eliminate) risk by
increasing the allocation to asset classes that have historically been subject
to lower levels of volatility. A fund intended for
investors who have already achieved retirement age would typically invest a
greater portion of its assets in bonds and cash
items, with a relatively smaller allocation to equity securities.
The
Underlying Funds employ a wide array of investment styles. For example, the
Underlying Funds can buy and sell common stocks of
companies of any size, corporate bonds of varying credit quality, U.S.
government and agency bonds, mortgage- and
asset-backed securities, commodities, real estate and money market instruments.
They may hold U.S. or non-U.S.
investments. The Underlying Funds may use derivative instruments of any kind,
including futures contracts, forward currency
contracts, credit default swaps, interest rate swaps and commodities-related
derivatives. Derivatives may be used by an
Underlying Fund for hedging or risk management purposes, as a substitute for
direct investment, or otherwise to seek
to enhance the Underlying Fund's total
return.
13
The
glide path depicted in the chart below shows how the Fund's strategic target
allocations among asset classes are expected
generally to place more emphasis on fixed income investments and less on equity
investments as the target retirement date
approaches.
The
glide path shows the Fund's long term strategic target allocations. The Fund's
actual allocations may differ. The Adviser
periodically reviews the Fund's target asset allocations and may, at any time,
in its discretion, change the target asset allocations
or deviate from the target asset allocations when it believes doing so is
appropriate to pursue the Fund's investment
objective. The glide path is presented only as an illustration of how the
process of re-allocation occurs as the Fund approaches
its target date.
The
following table shows the Fund's strategic target allocations to the Underlying
Funds as of the date of this Prospectus.
|
Underlying
Funds |
Target
Retirement
2025
Fund |
|
State
Street Equity 500 Index II Portfolio |
23.60% |
|
State
Street Small/Mid Cap Equity Index Portfolio |
5.24% |
|
State
Street Global All Cap Equity ex-U.S. Index Portfolio |
18.91% |
|
State
Street Aggregate Bond Index Portfolio |
20.50% |
|
SPDR
Bloomberg 1-10 Year TIPS ETF |
15.13% |
|
SPDR
Bloomberg High Yield Bond ETF |
6.78% |
|
SPDR
Dow Jones Global Real Estate ETF |
4.13% |
|
SPDR
Portfolio Long Term Treasury ETF |
1.75% |
|
SPDR
Portfolio Short Term Treasury ETF |
3.17% |
|
SPDR
Portfolio Short Term Corporate Bond ETF |
0.79% |
The
Fund's actual allocations are expected to differ over time. The Adviser
periodically reviews the Fund's target allocations to underlying
investment options and may, at any time, in its discretion, change the target
allocations or deviate from the target
allocations when it believes doing so is appropriate to pursue the Fund's
investment objective. The Adviser
14
may
modify the selection of Underlying Funds from time to time, and may invest in
other Underlying Funds, including any Underlying Funds
that may be created in the future. The table is presented for illustrative
purposes only. More current information
regarding the Fund's allocations may be available on its website:
www.ssga.com.
Principal
Risks
The
Fund is subject to the following principal risks. You could lose money by investing in the
Fund. Certain risks relating to instruments
and strategies used in the management of the Fund are placed first. The
significance of any specific risk to an investment
in the Fund will vary over time, depending on the composition of the Fund's
portfolio, market conditions, and other
factors. You should read all of the risk information presented below carefully,
because any one or more of these risks may
result in losses to the Fund. An investment in the
Fund is subject to investment risks, including possible loss of
principal, is not a deposit in a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any
other government agency. The Fund may not
achieve its investment objective. An investment in the
Fund is not guaranteed, and you may experience losses, including losses near,
at, or after the target date. There is no
guarantee that the Fund will provide adequate portfolio growth or income at and
through your retirement. The Fund is not
intended to be a complete investment program, but rather is intended for
investment as part of a diversified
investment portfolio. Investors should consult their own advisers as to the role
of the Fund in their overall investment
programs. Except as otherwise stated, references in this section to “the
Fund” or “a
Fund” may relate to the
Fund, one or more
Underlying Funds, or both. The risks described below may arise out of the Fund's
direct investments or the Fund's
investments in one or more of the Underlying Funds. All or a portion of the
Underlying Funds are managed pursuant to a
passive investment strategy, while the Fund is managed pursuant to an active
investment strategy. You will find
additional information about each Underlying Fund's risks in its prospectus and
SAI.
Asset
Allocation Risk: The Fund's
investment performance depends upon the successful allocation by the Adviser
of
the Fund's assets among asset classes, geographical regions, industry sectors,
and specific issuers and investments. There is no
guarantee that the Adviser's allocation techniques and decisions will produce
the desired results.
Risk
of Investment in Other Pools: When the Fund
invests in another pooled investment vehicle, it is exposed to the risk that the
other pool will not perform as expected and is exposed indirectly to all of the
risks applicable to an investment in
such other pool. The investment policies of the other pool may not be the same
as those of the Fund; as a result, an
investment in the other pool may be subject to additional or different risks
than those to which the Fund is typically
subject. The Fund bears its proportionate share of the fees and expenses of any
pool in which it invests. The
Adviser or an affiliate may serve as investment adviser to a pool in which the
Fund may invest, leading to potential
conflicts of interest. It is possible that other clients of the Adviser or its
affiliates will purchase or sell interests in a
pool sponsored or managed by the Adviser or its affiliates at prices and at
times more favorable than those at which
the Fund does so.
Target
Date Assumptions Risk: This is the risk
that assumptions and forecasts used by the Adviser in developing the Fund's asset
allocation glide path are not in line with actual future investment returns and
participant savings activities, which
could result in losses near, at, or after the target date year or could result
in the Fund not providing adequate income
at and through retirement.
Longevity
Risk: This is the risk
that you will outlive your retirement assets.
Below
Investment-Grade Securities Risk: Lower-quality
debt securities (“high
yield” or “junk” bonds) are
considered predominantly
speculative, and can involve a substantially greater risk of default than higher
quality debt securities. Issuers of
lower-quality debt securities may have substantially greater risk of insolvency
or bankruptcy than issuers of
higher-quality debt securities. They can be illiquid, and their values can have
significant volatility and may decline
significantly over short periods of time. Lower-quality debt securities tend to
be more sensitive to adverse news about the
issuer, or the market or economy in general.
Commodities
Risk: Commodity prices
can have significant volatility, and exposure to commodities can cause the
net
asset value (“NAV”) of Fund Shares
to decline or fluctuate in a rapid and unpredictable manner. A liquid
secondary market may not
exist for certain commodity investments, which may make it difficult for the
Fund to sell them at a desirable price
or at the price at which it is carrying
them.
15
Counterparty
Risk: The Fund will be
subject to credit risk with respect to the counterparties with which the Fund
enters into
derivatives contracts, repurchase agreements, reverse repurchase agreements, and
other transactions. If a counterparty
fails to meet its contractual obligations, the Fund may be unable to terminate
or realize any gain on the investment or
transaction, or to recover collateral posted to the counterparty, resulting in a
loss to the Fund. If the Fund holds
collateral posted by its counterparty, it may be delayed or prevented from
realizing on the collateral in the event of a
bankruptcy or insolvency proceeding relating to the
counterparty.
Currency
Risk: The value of the
Fund's assets may be affected favorably or unfavorably by currency exchange
rates, currency
exchange control regulations, and delays, restrictions or prohibitions on the
repatriation of foreign currencies.
Foreign currency exchange rates may have significant volatility, and changes in
the values of foreign currencies
against the U.S. dollar may result in substantial declines in the values of the
Fund's assets denominated in foreign
currencies.
Debt
Securities Risk: The values of
debt securities may increase or decrease as a result of the following: market
fluctuations,
changes in interest rates, actual or perceived inability or unwillingness of
issuers, guarantors or liquidity providers to
make scheduled principal or interest payments, or illiquidity in debt securities
markets. To the extent that interest
rates rise, certain underlying obligations may be paid off substantially slower
than originally anticipated and the value of
those securities may fall sharply. A rising interest rate environment may cause
the value of the Fund's fixed
income securities to decrease, an adverse impact on the liquidity of the Fund's
fixed income securities, and increased
volatility of the fixed income markets. During periods when interest rates are
at low levels, the Fund's yield can be low,
and the Fund may have a negative yield (i.e., it may lose money on an operating
basis). To the extent that
interest rates fall, certain underlying obligations may be paid off
substantially faster than originally anticipated. If the principal
on a debt obligation is prepaid before expected, the prepayments of principal
may have to be reinvested in
obligations paying interest at lower rates. During periods of falling interest
rates, the income received by the Fund may
decline. Changes in interest rates will likely have a greater effect on the
values of debt securities of longer
durations. Returns on investments in debt securities could trail the returns on
other investment options, including
investments in equity securities. The U.S. Federal Reserve has been engaged in
an aggressive campaign to raise interest
rates in an effort to combat historically high levels of inflation. Interest
rate increases may continue. High levels of
inflation and/or a significantly changing interest rate environment can lead to
heightened levels of volatility and
reduced liquidity.
Depositary
Receipts Risk: Investments in
depositary receipts may be less liquid and more volatile than the
underlying securities in
their primary trading market. If a depositary receipt is denominated in a
different currency than its underlying
securities, the Fund will be subject to the currency risk of both the investment
in the depositary receipt and the
underlying security. Holders of depositary receipts may have limited or no
rights to take action with respect to the underlying
securities or to compel the issuer of the receipts to take action. The prices of
depositary receipts may differ from
the prices of securities upon which they are based. To the extent the Fund
invests in depositary receipts based on
securities included in the Index, such differences in prices may increase index
tracking risk.
Derivatives
Risk: Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a
derivative transaction will result in a much greater loss than the principal
amount invested, that changes in the value of a
derivative transaction may not correlate perfectly with the underlying asset,
and that the Fund may not be able to
close out a derivative transaction at a favorable time or price. The
counterparty to a derivatives contract may be unable or
unwilling to make timely settlement payments, return the Fund's margin, or
otherwise honor its obligations.
A derivatives transaction may not behave in the manner anticipated by the
Adviser or may not have the effect on the
Fund anticipated by the
Adviser.
Emerging
Markets Risk: Risks of
investing in emerging markets include, among others, greater political and
economic instability,
greater volatility in currency exchange rates, less developed securities
markets, possible trade barriers, currency
transfer restrictions, a more limited number of potential buyers and issuers, an
emerging market country's dependence on
revenue from particular commodities or international aid, less governmental
supervision and regulation,
unavailability of currency hedging techniques, differences in auditing and
financial reporting standards, less stringent
investor protection and disclosure standards, less developed public health
systems, and less developed legal
systems. There is also the potential for unfavorable action such as
expropriation, nationalization, embargo, and acts
of war. The securities of emerging market companies may trade less frequently
and in smaller volumes than more
widely held securities. Market disruptions or substantial market corrections may
limit very significantly the liquidity of
securities of certain companies in a particular country or geographic region, or
of all compa
16
nies
in the country or region. The Fund may be unable to liquidate its positions in
such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. These risks are generally
greater for investments in frontier market
countries, which typically have smaller economies or less developed capital
markets than traditional emerging market
countries.
Equity
Investing Risk: The market
prices of equity securities owned by the Fund may go up or down, sometimes
rapidly or
unpredictably. The value of a security may decline for a number of reasons that
may directly relate to the issuer and also
may decline due to general industry or market conditions that are not
specifically related to a particular company. In
addition, equity markets tend to move in cycles, which may cause stock prices to
fall over short or extended
periods of time.
Geographic
Focus Risk: The performance
of a fund that is less diversified across countries or geographic regions
will
be closely tied to market, currency, economic, political, environmental, or
regulatory conditions and developments in the countries
or regions in which the fund invests, and may be more volatile than the
performance of a more geographically-diversified
fund.
Income
Risk: The Fund's
income may decline due to falling interest rates or other factors. Issuers of
securities held by the Fund may
call or redeem the securities during periods of falling interest rates, and the
Fund would likely be required to
reinvest in securities paying lower interest rates. If an obligation held by the
Fund is prepaid, the Fund may have to
reinvest the prepayment in other obligations paying income at lower
rates.
Indexing
Strategy/Index Tracking Risk: The Fund is
managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of
the actual securities comprising the Index. This differs from an
actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed
using an active investment strategy. The structure and composition of the Index
will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. While the Adviser
seeks to track the performance of the Index (i.e., achieve a high
degree of correlation with the Index), the
Fund's return may not match the return of the Index. The Fund incurs a number of
operating expenses not applicable to
the Index, and incurs costs in buying and selling securities. In addition, the
Fund may not be fully invested at
times, generally as a result of cash flows into or out of the Fund or reserves
of cash held by the Fund to meet redemptions.
The Adviser may attempt to replicate the Index return by investing in fewer than
all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return
and that of the Index.
Inflation
Risk: Inflation risk
is the risk that the value of assets or income from investments will be less in
the future as inflation
decreases the value of money. As inflation increases, the values of a fund's
assets can decline. Inflation rates may change
frequently and drastically as a result of various factors and the Fund's
investments may not keep pace with
inflation, which may result in losses to Fund investors or adversely affect the
real value of shareholders' investments in
the Fund. Recently, inflation levels have been at their highest point in
nearly 40 years, and the Federal Reserve has
begun an aggressive campaign to raise certain benchmark interest rates in an
effort to combat inflation. As
such, fixed income securities markets may experience heightened levels of
interest rate volatility and liquidity
risk.
Inflation-Indexed
Securities Risk: The principal
amount of an inflation-indexed security typically increases with inflation and
decreases with deflation, as measured by a specified index. It is possible that,
in a period of declining inflation rates,
the Fund could receive at maturity less than the initial principal amount of an
inflation-indexed security. Changes in the
values of inflation-indexed securities may be difficult to predict, and it is
possible that an investment in such
securities will have an effect different from that anticipated by the
Adviser.
IPO
Risk: The Fund may at
times have the opportunity to invest in securities offered in initial public
offerings (“IPOs”). IPOs involve
companies that have no public operating history and therefore entail more risk
than established public companies. The
prices of securities offered in IPOs can have significant volatility and the
Fund may lose money on an investment in
such securities. IPO investments in which other clients of the Adviser invest
may not be made available to the
Fund.
17
Large-Capitalization
Securities Risk: Returns on
investments in securities of large companies could trail the returns
on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as
smaller and mid-sized companies to competitive challenges or to changes in
business, product, financial, or other
market conditions. Larger companies may not be able to maintain growth at the
high rates that may be achieved by
well-managed smaller and mid-sized
companies.
Large
Shareholder Risk: To the extent a
large proportion of the shares of the Fund are held by a small number of
shareholders (or
a single shareholder), including funds or accounts over which the Adviser has
investment discretion, the Fund is
subject to the risk that these shareholders will purchase or redeem Fund Shares
in large amounts rapidly or
unexpectedly, including as a result of an asset allocation decision made by the
Adviser. These transactions could adversely
affect the ability of the Fund to conduct its investment
program.
Liquidity
Risk: Lack of a ready
market, stressed market conditions, or restrictions on resale may limit the
ability of the Fund to sell
a security at an advantageous time or price or at all. Illiquid investments may
trade at a discount from comparable, more
liquid investments and may be subject to wide fluctuations in market value.
Illiquidity of the Fund's holdings may also
limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations on investments in any illiquid investments and/or the difficulty in
purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Management
Risk: The Fund is
actively managed. The Adviser's judgments about the attractiveness, relative
value, or potential
appreciation of a particular sector, security, commodity or investment strategy
may prove to be incorrect, and may cause the
Fund to incur losses. There can be no assurance that the Adviser's investment
techniques and decisions will
produce the desired
results.
Market
Risk: The Fund's
investments are subject to changes in general economic conditions, general
market fluctuations and the risks
inherent in investment in securities markets. Investment markets can be volatile
and prices of investments can
change substantially due to various factors including, but not limited to,
economic growth or recession, changes in
interest rates, inflation, changes in the actual or perceived creditworthiness
of issuers, and general market liquidity.
The Fund is subject to the risk that geopolitical events will disrupt securities
markets and adversely affect global
economies and markets. Local, regional or global events such as war, military
conflicts, acts of terrorism, natural
disasters, the spread of infectious illness or other public health issues, or
other events could have a significant impact on the
Fund and its investments.
Modeling
Risk: The Adviser uses
quantitative models in an effort to enhance returns and manage risk. Any
imperfections, errors or
limitations in these models could limit any benefit to the Fund from the use of
the models, or could result in
incorrect outputs or in investment outcomes different from or opposite to those
expected or desired by the Adviser. There
can be no assurance that the models will behave as expected in all market
conditions. In addition, computer
programming used to create quantitative models, or the data on which such models
operate, might contain one or more
errors.
Mortgage-Related
and Other Asset-Backed Securities Risk: Investments in
mortgage-related and other asset-backed securities are
subject to the risk of significant credit downgrades, illiquidity, and defaults
to a greater extent than many other
types of fixed-income investments. The liquidity of mortgage-related and
asset-backed securities may change over
time. During periods of falling interest rates, mortgage- and asset-backed
securities may be called or prepaid, which
may result in the Fund having to reinvest proceeds in other investments at a
lower interest rate. During periods of
rising interest rates, the average life of mortgage- and asset-backed securities
may extend, which may lock in a
below-market interest rate, increase the security's duration and interest rate
sensitivity, and reduce the value of the
security. Enforcing rights against the underlying assets or collateral may be
difficult, and the underlying assets or
collateral may be insufficient if the issuer
defaults.
Non-U.S.
Securities Risk: Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks
not present in domestic investments. There may be less information publicly
available about a non-U.S. entity than
about a U.S. entity, and many non-U.S. entities are not subject to accounting,
auditing, legal and financial report
standards comparable to those in the United States. Further, such entities
and/or their securities may be subject to
risks associated with currency controls; expropriation; changes in tax policy;
greater market volatility; differing
securities market structures; higher transaction costs; and various
administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. Securities
traded on foreign mar
18
kets
may be less liquid (harder to sell) than securities traded domestically. Foreign
governments may impose restrictions on the
repatriation of capital to the U.S. In addition, to the extent that the
Fund buys securities denominated in a foreign
currency, there are special risks such as changes in currency exchange rates and
the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of
countries, events in those countries will have a more significant impact on the
Fund. Investments in depositary
receipts may be less liquid and more volatile than the underlying shares in
their primary trading
market.
Real
Estate Sector Risk: An investment in
a real property company may be subject to risks similar to those
associated with direct
ownership of real estate, including, by way of example, the possibility of
declines in the value of real estate,
losses from casualty or condemnation, and changes in local and general economic
conditions, supply and demand,
interest rates, environmental liability, zoning laws, regulatory limitations on
rents, property taxes, and operating
expenses. Some real property companies have limited diversification because they
invest in a limited number of properties, a
narrow geographic area, or a single type of
property.
REIT
Risk: Real estate
investment trusts (“REITs”) are subject to
the risks associated with investing in the securities of real property
companies. In particular, REITs may be affected by changes in the values of the
underlying properties that they own or
operate. Further, REITs are dependent upon specialized management skills, and
their investments may be
concentrated in relatively few properties, or in a small geographic area or a
single property type. REITs are also subject
to heavy cash flow dependency and, as a result, are particularly reliant on the
proper functioning of capital markets.
A variety of economic and other factors may adversely affect a lessee's ability
to meet its obligations to a REIT. In
the event of a default by a lessee, the REIT may experience delays in enforcing
its rights as a lessor and may incur
substantial costs associated in protecting its investments. In addition, a REIT
could fail to qualify for favorable
regulatory treatment.
Restricted
Securities Risk: The Fund may
hold securities that have not been registered for sale to the public under
the
U.S. federal securities laws. There can be no assurance that a trading market
will exist at any time for any particular restricted
security. Limitations on the resale of these securities may have an adverse
effect on their marketability, and may prevent
the Fund from disposing of them promptly at reasonable prices. The Fund may have
to bear the expense of
registering the securities for resale and the risk of substantial delays in
effecting the registration. Also, restricted
securities may be difficult to value because market quotations may not be
readily available, and the securities may
have significant
volatility.
Small-,
Mid- and Micro-Capitalization Securities Risk: The securities
of small-, mid- and micro-capitalization companies may be
more volatile and may involve more risk than the securities of larger companies.
These companies may have limited
product lines, markets or financial resources, may lack the competitive strength
of larger companies, and may depend
on a few key employees. In addition, these companies may have been recently
organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller
volumes than more widely held securities. Some securities of smaller issuers may
be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such
securities at any time, or at a favorable price, in order to meet the Fund's
obligations. Returns on investments in securities of
small-, mid- and micro-capitalization companies could trail the returns on
investments in securities of larger
companies.
Unconstrained
Sector Risk: The Fund may
invest a substantial portion of its assets within one or more economic
sectors or
industries, which may change from time to time. Greater investment focus on one
or more sectors or industries
increases the potential for volatility and the risk that events negatively
affecting such sectors or industries could reduce
returns, potentially causing the value of the Fund's Shares to decrease, perhaps
significantly.
U.S.
Government Securities Risk: Certain U.S.
government securities are supported by the full faith and credit of the United
States; others are supported by the right of the issuer to borrow from the U.S.
Treasury; others are supported by the
discretionary authority of the U.S. government to purchase the agency's
obligations; and still others are supported
only by the credit of the issuing agency, instrumentality, or enterprise.
Although U.S. government-sponsored enterprises such
as the Federal Home Loan Mortgage Corporation (“Freddie
Mac”) and the Federal
National Mortgage
Association (“Fannie
Mae”) may be
chartered or sponsored by Congress, they are not funded by
Congressional appropriations,
and their securities are not issued by the U.S. Treasury, are not supported by
the full faith and credit of the
U.S. government, and involve increased credit
risks.
19
U.S.
Treasury Obligations Risk: U.S. Treasury
obligations may differ from other fixed income securities in their interest rates,
maturities, times of issuance and other characteristics. Similar to other
issuers, changes to the financial condition or
credit rating of the U.S. government may cause the value of the Fund's U.S.
Treasury obligations to decline.
Valuation
Risk: Some portfolio
holdings, potentially a large portion of the Fund's investment portfolio, may be
valued on the basis of
factors other than market quotations. This may occur more often in times of
market turmoil or reduced
liquidity. There are multiple methods that can be used to value a portfolio
holding when market quotations are not readily
available. The value established for any portfolio holding at a point in time
might differ from what would be produced
using a different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued
using techniques other than market quotations, including “fair
valued” securities, may
be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance
that the Fund could sell or close out a portfolio position for the value
established for it at any time, and it is
possible that the Fund would incur a loss because a portfolio position is sold
or closed out at a discount to the valuation
established by the Fund at that time. Investors who purchase or redeem Fund
Shares on days when the Fund is
holding fair-valued investments may receive fewer or more shares or lower or
higher redemption proceeds than they would
have received if the Fund had not fair-valued the holding(s) or had used a
different valuation methodology.
When-Issued,
TBA and Delayed Delivery Securities Risk: The Fund may
purchase securities on a when-issued, to-be-announced
(“TBA”) or delayed
delivery basis and may purchase securities on a forward commitment basis.
The
purchase price of the securities is typically fixed at the time of the
commitment, but delivery and payment can take place a
month or more after the date of the commitment. At the time of delivery of the
securities, the value may be more or less
than the purchase or sale price. Purchase of securities on a when-issued, TBA,
delayed delivery, or forward
commitment basis may give rise to investment leverage, and may result in
increased volatility of the Fund's NAV. Default by,
or bankruptcy of, a counterparty to a when-issued, TBA or delayed delivery
transaction would expose the Fund to
possible losses because of an adverse market action, expenses or delays in
connection with the purchase or sale of the
pools specified in such transaction. Rule amendments proposed by the Financial
Industry Regulatory Authority, Inc.
may impose mandatory margin requirements for certain types of when-issued, TBA
delayed delivery or
forward commitment transactions, with limited exceptions. Such transactions
require mandatory collateralization which may
increase the cost of such transactions and impose added operational
complexity.
Performance
Annual
Total Returns (years ended
12/31)
20
Average
Annual Total Returns (for periods
ended 12/31/22)
|
|
One
Year |
Five
Years |
Since
Inception |
Inception
Date |
|
Class
I |
|
|
|
|
|
Return
Before Taxes |
- |
|
|
|
|
Return
After Taxes on Distributions |
- |
|
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
- |
|
|
|
|
Class
K Returns Before Taxes |
- |
|
|
|
|
S&P
500 Index (reflects no deduction for fees, expenses or
taxes) |
- |
|
|
|
|
State
Street Target Retirement 2025 Composite Index (reflects no
deduction
for fees, expenses or taxes) |
- |
|
|
|
Investment
Adviser
SSGA FM serves as
the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Seamus Quinn and Michael Narkiewicz. Mr.
Quinn has served as a portfolio manager of the Fund since 2022 and Mr.
Narkiewicz has served as a portfolio manager
of the Fund since 2018.
Seamus
Quinn, CFA, CAIA, is a Principal of the Adviser and a Portfolio Manager in the
Investment Solutions Group. He joined the
Adviser in 2012.
Michael
Narkiewicz is a Vice President of the Adviser and a Senior Portfolio Manager in
the Investment Solutions Group. He joined the
Adviser in 2013.
Purchase
and Sale of Fund Shares
Purchase
Minimums
The
Fund's initial and subsequent investment minimums generally are as follows,
although the Fund may reduce or waive the minimums in
some cases.
|
Class
I |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
|
Class
K |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
|
Class
R3 |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
You may purchase
or redeem Fund Shares on any day the Fund is open for business.
Written
Requests and Wire Transfers. You may
purchase or redeem Fund Shares by written request or wire transfer.
21
Written requests
should be sent to:
By
Mail:
State Street
Funds
P.O. Box 219737
Kansas City, MO 64121-9737
P.O. Box 219737
Kansas City, MO 64121-9737
By
Overnight/Registered, Express, Certified Mail:
State Street
Funds
430 W 7th Street Suite 219737
Kansas City, MO 64105-1407
430 W 7th Street Suite 219737
Kansas City, MO 64105-1407
By
Intermediary:
If
you wish to purchase or redeem Fund Shares through a broker, bank or other
financial intermediary (“Financial
Intermediary”), please contact
that Financial Intermediary directly. Your Financial Intermediary may have
different or additional requirements for
opening an account and/or for the processing of purchase and redemption orders,
or may be closed at times
when the Fund is open. Financial Intermediaries may contact SS&C GIDS,
Inc. at (877) 332-6207 or via email at
nsccresearch@dstsystems.com with questions.
Tax
Information
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan or IRA.
Any withdrawals made from such
tax-advantaged arrangement may be taxable to you.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other Financial Intermediary
(such as a bank), the Adviser or its affiliates may
pay the Financial Intermediary for certain activities related to the Fund,
including educational training programs, conferences, the
development of technology platforms and reporting systems, or other services
related to the sale or promotion
of the Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your Financial
Intermediary's website for more information.
22
State
Street Target Retirement 2030 Fund
Investment
Objective
The
investment objective of the State Street Target Retirement 2030 Fund (the
“Target Retirement
2030 Fund” or the
“Fund”) is to seek
capital growth and income over the long
term.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell shares of the Fund (“Fund Shares”). You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries which
are not reflected in the tables and examples
below.
Shareholder
Fees (fees paid
directly from your investment)
|
|
Class
I |
Class
K |
Class
R3 |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the lower of the sale
proceeds or the
original
offering price) |
|
|
|
Annual
Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment)
|
|
Class
I |
Class
K |
Class
R3 |
|
Management
Fee |
|
|
|
|
Distribution
and/or Shareholder Service (12b-1) Fees |
|
|
|
|
Other
Expenses1
|
|
|
|
|
Acquired
Fund Fees and Expenses |
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
Less
Fee Waivers and/or Expense Reimbursements2
|
( |
( |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
|
|
1
2
Example:
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell or hold all of your Fund Shares at
the end of those periods. The Example also assumes that your investment has a 5%
return each year and that the
Fund's operating expenses remain the same. The calculation of costs for the
one-year period takes into account the
effect of any current contractual fee waivers and/or reimbursements; and the
calculation of costs for the remaining periods
takes such fee waivers and/or reimbursements into account only for the first
year of each such period. Although your
actual costs may be higher or lower, based on these assumptions your costs would
be:
23
|
|
1
year |
3
years |
5
years |
10
years |
|
Class
I |
$ |
$ |
$ |
$ |
|
Class
K |
$ |
$ |
$ |
$ |
|
Class
R3 |
$ |
$ |
$ |
$ |
Portfolio
Turnover:
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns
over” its portfolio). A
higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Example, affect the Fund's
performance. During the most
recent fiscal year, the Fund's portfolio turnover rate was 14 % of the average value of
its portfolio.
Principal
Investment Strategies
SSGA
Funds Management, Inc. (“SSGA
FM” or the
“Adviser”), the investment
adviser to the Fund, manages the Target Retirement 2030
Fund using a proprietary asset allocation strategy. The Fund is a “fund of
funds” that invests in a
combination of mutual funds
and ETFs sponsored by the Adviser or its affiliates (the “Underlying
Funds”). The Underlying
Funds may invest
in a wide variety of asset classes, including equity and fixed-income securities
of issuers anywhere in the world,
including emerging markets investments, and including, among others, high yield,
commodity, and real estate investments. The
Underlying Funds may invest in obligations of domestic U.S. issuers, non-U.S.
issuers, or both.
The
Fund is intended for investors expecting to retire around the year 2030 and who
are likely to stop making new investments in the Fund at
that time. The Fund is designed for an investor who plans to withdraw the value
of the investor's account gradually
following that date. The Adviser seeks to optimize the Fund's “glide
path” for the wealth
accumulation, wealth
preservation, and income generation phases of retirement planning and includes
adjustments in the critical years immediately
preceding and following the retirement date. For example, a Fund with a target
retirement date far into the future will
typically invest a greater portion of its assets in asset classes with higher
risk profiles and the potential for higher returns.
As the target date for a Fund approaches, the Adviser will adjust the asset
allocation and risk profile of the Fund – its
glide path – to what is generally seen to be a more conservative approach to
reduce (but not to eliminate) risk by
increasing the allocation to asset classes that have historically been subject
to lower levels of volatility. A fund intended for
investors who have already achieved retirement age would typically invest a
greater portion of its assets in bonds and cash
items, with a relatively smaller allocation to equity securities.
The
Underlying Funds employ a wide array of investment styles. For example, the
Underlying Funds can buy and sell common stocks of
companies of any size, corporate bonds of varying credit quality, U.S.
government and agency bonds, mortgage- and
asset-backed securities, commodities, real estate and money market instruments.
They may hold U.S. or non-U.S.
investments. The Underlying Funds may use derivative instruments of any kind,
including futures contracts, forward currency
contracts, credit default swaps, interest rate swaps and commodities-related
derivatives. Derivatives may be used by an
Underlying Fund for hedging or risk management purposes, as a substitute for
direct investment, or otherwise to seek
to enhance the Underlying Fund's total
return.
24
The
glide path depicted in the chart below shows how the Fund's strategic target
allocations among asset classes are expected
generally to place more emphasis on fixed income investments and less on equity
investments as the target retirement date
approaches.
The
glide path shows the Fund's long term strategic target allocations. The Fund's
actual allocations may differ. The Adviser
periodically reviews the Fund's target asset allocations and may, at any time,
in its discretion, change the target asset allocations
or deviate from the target asset allocations when it believes doing so is
appropriate to pursue the Fund's investment
objective. The glide path is presented only as an illustration of how the
process of re-allocation occurs as the Fund approaches
its target date.
The
following table shows the Fund's strategic target allocations to the Underlying
Funds as of the date of this Prospectus.
|
Underlying
Funds |
Target
Retirement
2030
Fund |
|
State
Street Equity 500 Index II Portfolio |
29.33% |
|
State
Street Small/Mid Cap Equity Index Portfolio |
7.39% |
|
State
Street Global All Cap Equity ex-U.S. Index Portfolio |
26.02% |
|
State
Street Aggregate Bond Index Portfolio |
16.81% |
|
SPDR
Bloomberg 1-10 Year TIPS ETF |
6.29% |
|
SPDR
Bloomberg High Yield Bond ETF |
5.78% |
|
SPDR
Dow Jones Global Real Estate ETF |
1.63% |
|
SPDR
Portfolio Long Term Treasury ETF |
6.75% |
|
SPDR
Portfolio Short Term Treasury ETF |
0.00% |
|
SPDR
Portfolio Short Term Corporate Bond ETF |
0.00% |
The
Fund's actual allocations are expected to differ over time. The Adviser
periodically reviews the Fund's target allocations to underlying
investment options and may, at any time, in its discretion, change the target
allocations or deviate from the target
allocations when it believes doing so is appropriate to pursue the Fund's
investment objective. The Adviser
25
may
modify the selection of Underlying Funds from time to time, and may invest in
other Underlying Funds, including any Underlying Funds
that may be created in the future. The table is presented for illustrative
purposes only. More current information
regarding the Fund's allocations may be available on its website:
www.ssga.com.
Principal
Risks
The
Fund is subject to the following principal risks. You could lose money by investing in the
Fund. Certain risks relating to instruments
and strategies used in the management of the Fund are placed first. The
significance of any specific risk to an investment
in the Fund will vary over time, depending on the composition of the Fund's
portfolio, market conditions, and other
factors. You should read all of the risk information presented below carefully,
because any one or more of these risks may
result in losses to the Fund. An investment in the Fund is
subject to investment risks, including possible loss of principal, is not a
deposit in a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government
agency. The Fund may not
achieve its investment objective. An investment in the
Fund is not guaranteed, and you may experience losses, including losses near,
at, or after the target date. There is no
guarantee that the Fund will provide adequate portfolio growth or income at and
through your retirement. The Fund is not
intended to be a complete investment program, but rather is intended for
investment as part of a diversified
investment portfolio. Investors should consult their own advisers as to the role
of the Fund in their overall investment
programs. Except as otherwise stated, references in this section to “the
Fund” or “a
Fund” may relate to the
Fund, one or more
Underlying Funds, or both. The risks described below may arise out of the Fund's
direct investments or the Fund's
investments in one or more of the Underlying Funds. All or a portion of the
Underlying Funds are managed pursuant to a
passive investment strategy, while the Fund is managed pursuant to an active
investment strategy. You will find
additional information about each Underlying Fund's risks in its prospectus and
SAI.
Asset
Allocation Risk: The Fund's
investment performance depends upon the successful allocation by the Adviser
of
the Fund's assets among asset classes, geographical regions, industry sectors,
and specific issuers and investments. There is no
guarantee that the Adviser's allocation techniques and decisions will produce
the desired results.
Risk
of Investment in Other Pools: When the Fund
invests in another pooled investment vehicle, it is exposed to the risk that the
other pool will not perform as expected and is exposed indirectly to all of the
risks applicable to an investment in
such other pool. The investment policies of the other pool may not be the same
as those of the Fund; as a result, an
investment in the other pool may be subject to additional or different risks
than those to which the Fund is typically
subject. The Fund bears its proportionate share of the fees and expenses of any
pool in which it invests. The
Adviser or an affiliate may serve as investment adviser to a pool in which the
Fund may invest, leading to potential
conflicts of interest. It is possible that other clients of the Adviser or its
affiliates will purchase or sell interests in a
pool sponsored or managed by the Adviser or its affiliates at prices and at
times more favorable than those at which
the Fund does so.
Target
Date Assumptions Risk: This is the risk
that assumptions and forecasts used by the Adviser in developing the Fund's asset
allocation glide path are not in line with actual future investment returns and
participant savings activities, which
could result in losses near, at, or after the target date year or could result
in the Fund not providing adequate income
at and through retirement.
Longevity
Risk: This is the risk
that you will outlive your retirement assets.
Below
Investment-Grade Securities Risk: Lower-quality
debt securities (“high
yield” or “junk” bonds) are
considered predominantly
speculative, and can involve a substantially greater risk of default than higher
quality debt securities. Issuers of
lower-quality debt securities may have substantially greater risk of insolvency
or bankruptcy than issuers of
higher-quality debt securities. They can be illiquid, and their values can have
significant volatility and may decline
significantly over short periods of time. Lower-quality debt securities tend to
be more sensitive to adverse news about the
issuer, or the market or economy in general.
Commodities
Risk: Commodity prices
can have significant volatility, and exposure to commodities can cause the
net
asset value (“NAV”) of Fund Shares
to decline or fluctuate in a rapid and unpredictable manner. A liquid
secondary market may not
exist for certain commodity investments, which may make it difficult for the
Fund to sell them at a desirable price
or at the price at which it is carrying
them.
26
Counterparty
Risk: The Fund will be
subject to credit risk with respect to the counterparties with which the Fund
enters into
derivatives contracts, repurchase agreements, reverse repurchase agreements, and
other transactions. If a counterparty
fails to meet its contractual obligations, the Fund may be unable to terminate
or realize any gain on the investment or
transaction, or to recover collateral posted to the counterparty, resulting in a
loss to the Fund. If the Fund holds
collateral posted by its counterparty, it may be delayed or prevented from
realizing on the collateral in the event of a
bankruptcy or insolvency proceeding relating to the
counterparty.
Currency
Risk: The value of the
Fund's assets may be affected favorably or unfavorably by currency exchange
rates, currency
exchange control regulations, and delays, restrictions or prohibitions on the
repatriation of foreign currencies.
Foreign currency exchange rates may have significant volatility, and changes in
the values of foreign currencies
against the U.S. dollar may result in substantial declines in the values of the
Fund's assets denominated in foreign
currencies.
Debt
Securities Risk: The values of
debt securities may increase or decrease as a result of the following: market
fluctuations,
changes in interest rates, actual or perceived inability or unwillingness of
issuers, guarantors or liquidity providers to
make scheduled principal or interest payments, or illiquidity in debt securities
markets. To the extent that interest
rates rise, certain underlying obligations may be paid off substantially slower
than originally anticipated and the value of
those securities may fall sharply. A rising interest rate environment may cause
the value of the Fund's fixed
income securities to decrease, an adverse impact on the liquidity of the Fund's
fixed income securities, and increased
volatility of the fixed income markets. During periods when interest rates are
at low levels, the Fund's yield can be low,
and the Fund may have a negative yield (i.e., it may lose money on an operating
basis). To the extent that
interest rates fall, certain underlying obligations may be paid off
substantially faster than originally anticipated. If the principal
on a debt obligation is prepaid before expected, the prepayments of principal
may have to be reinvested in
obligations paying interest at lower rates. During periods of falling interest
rates, the income received by the Fund may
decline. Changes in interest rates will likely have a greater effect on the
values of debt securities of longer
durations. Returns on investments in debt securities could trail the returns on
other investment options, including
investments in equity securities. The U.S. Federal Reserve has been engaged in
an aggressive campaign to raise interest
rates in an effort to combat historically high levels of inflation. Interest
rate increases may continue. High levels of
inflation and/or a significantly changing interest rate environment can lead to
heightened levels of volatility and
reduced liquidity.
Depositary
Receipts Risk: Investments in
depositary receipts may be less liquid and more volatile than the
underlying securities in
their primary trading market. If a depositary receipt is denominated in a
different currency than its underlying
securities, the Fund will be subject to the currency risk of both the investment
in the depositary receipt and the
underlying security. Holders of depositary receipts may have limited or no
rights to take action with respect to the underlying
securities or to compel the issuer of the receipts to take action. The prices of
depositary receipts may differ from
the prices of securities upon which they are based. To the extent the Fund
invests in depositary receipts based on
securities included in the Index, such differences in prices may increase index
tracking risk.
Derivatives
Risk: Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a
derivative transaction will result in a much greater loss than the principal
amount invested, that changes in the value of a
derivative transaction may not correlate perfectly with the underlying asset,
and that the Fund may not be able to
close out a derivative transaction at a favorable time or price. The
counterparty to a derivatives contract may be unable or
unwilling to make timely settlement payments, return the Fund's margin, or
otherwise honor its obligations.
A derivatives transaction may not behave in the manner anticipated by the
Adviser or may not have the effect on the
Fund anticipated by the
Adviser.
Emerging
Markets Risk: Risks of
investing in emerging markets include, among others, greater political and
economic instability,
greater volatility in currency exchange rates, less developed securities
markets, possible trade barriers, currency
transfer restrictions, a more limited number of potential buyers and issuers, an
emerging market country's dependence on
revenue from particular commodities or international aid, less governmental
supervision and regulation,
unavailability of currency hedging techniques, differences in auditing and
financial reporting standards, less stringent
investor protection and disclosure standards, less developed public health
systems, and less developed legal
systems. There is also the potential for unfavorable action such as
expropriation, nationalization, embargo, and acts
of war. The securities of emerging market companies may trade less frequently
and in smaller volumes than more
widely held securities. Market disruptions or substantial market corrections may
limit very significantly the liquidity of
securities of certain companies in a particular country or geographic region, or
of all compa
27
nies
in the country or region. The Fund may be unable to liquidate its positions in
such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. These risks are generally
greater for investments in frontier market
countries, which typically have smaller economies or less developed capital
markets than traditional emerging market
countries.
Equity
Investing Risk: The market
prices of equity securities owned by the Fund may go up or down, sometimes
rapidly or
unpredictably. The value of a security may decline for a number of reasons that
may directly relate to the issuer and also
may decline due to general industry or market conditions that are not
specifically related to a particular company. In
addition, equity markets tend to move in cycles, which may cause stock prices to
fall over short or extended
periods of time.
Geographic
Focus Risk: The performance
of a fund that is less diversified across countries or geographic regions
will
be closely tied to market, currency, economic, political, environmental, or
regulatory conditions and developments in the countries
or regions in which the fund invests, and may be more volatile than the
performance of a more geographically-diversified
fund.
Income
Risk: The Fund's
income may decline due to falling interest rates or other factors. Issuers of
securities held by the Fund may
call or redeem the securities during periods of falling interest rates, and the
Fund would likely be required to
reinvest in securities paying lower interest rates. If an obligation held by the
Fund is prepaid, the Fund may have to
reinvest the prepayment in other obligations paying income at lower
rates.
Indexing
Strategy/Index Tracking Risk: The Fund is
managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of
the actual securities comprising the Index. This differs from an
actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed
using an active investment strategy. The structure and composition of the Index
will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. While the Adviser
seeks to track the performance of the Index (i.e., achieve a high
degree of correlation with the Index), the
Fund's return may not match the return of the Index. The Fund incurs a number of
operating expenses not applicable to
the Index, and incurs costs in buying and selling securities. In addition, the
Fund may not be fully invested at
times, generally as a result of cash flows into or out of the Fund or reserves
of cash held by the Fund to meet redemptions.
The Adviser may attempt to replicate the Index return by investing in fewer than
all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return
and that of the Index.
Inflation
Risk: Inflation risk
is the risk that the value of assets or income from investments will be less in
the future as inflation
decreases the value of money. As inflation increases, the values of a fund's
assets can decline. Inflation rates may change
frequently and drastically as a result of various factors and the Fund's
investments may not keep pace with
inflation, which may result in losses to Fund investors or adversely affect the
real value of shareholders' investments in
the Fund. Recently, inflation levels have been at their highest point in
nearly 40 years, and the Federal Reserve has
begun an aggressive campaign to raise certain benchmark interest rates in an
effort to combat inflation. As
such, fixed income securities markets may experience heightened levels of
interest rate volatility and liquidity
risk.
Inflation-Indexed
Securities Risk: The principal
amount of an inflation-indexed security typically increases with inflation and
decreases with deflation, as measured by a specified index. It is possible that,
in a period of declining inflation rates,
the Fund could receive at maturity less than the initial principal amount of an
inflation-indexed security. Changes in the
values of inflation-indexed securities may be difficult to predict, and it is
possible that an investment in such
securities will have an effect different from that anticipated by the
Adviser.
IPO
Risk: The Fund may at
times have the opportunity to invest in securities offered in initial public
offerings (“IPOs”). IPOs involve
companies that have no public operating history and therefore entail more risk
than established public companies. The
prices of securities offered in IPOs can have significant volatility and the
Fund may lose money on an investment in
such securities. IPO investments in which other clients of the Adviser invest
may not be made available to the
Fund.
28
Large-Capitalization
Securities Risk: Returns on
investments in securities of large companies could trail the returns
on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as
smaller and mid-sized companies to competitive challenges or to changes in
business, product, financial, or other
market conditions. Larger companies may not be able to maintain growth at the
high rates that may be achieved by
well-managed smaller and mid-sized
companies.
Large
Shareholder Risk: To the extent a
large proportion of the shares of the Fund are held by a small number of
shareholders (or
a single shareholder), including funds or accounts over which the Adviser has
investment discretion, the Fund is
subject to the risk that these shareholders will purchase or redeem Fund Shares
in large amounts rapidly or
unexpectedly, including as a result of an asset allocation decision made by the
Adviser. These transactions could adversely
affect the ability of the Fund to conduct its investment
program.
Liquidity
Risk: Lack of a ready
market, stressed market conditions, or restrictions on resale may limit the
ability of the Fund to sell
a security at an advantageous time or price or at all. Illiquid investments may
trade at a discount from comparable, more
liquid investments and may be subject to wide fluctuations in market value.
Illiquidity of the Fund's holdings may also
limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations on investments in any illiquid investments and/or the difficulty in
purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Management
Risk: The Fund is
actively managed. The Adviser's judgments about the attractiveness, relative
value, or potential
appreciation of a particular sector, security, commodity or investment strategy
may prove to be incorrect, and may cause the
Fund to incur losses. There can be no assurance that the Adviser's investment
techniques and decisions will
produce the desired
results.
Market
Risk: The Fund's
investments are subject to changes in general economic conditions, general
market fluctuations and the risks
inherent in investment in securities markets. Investment markets can be volatile
and prices of investments can
change substantially due to various factors including, but not limited to,
economic growth or recession, changes in
interest rates, inflation, changes in the actual or perceived creditworthiness
of issuers, and general market liquidity.
The Fund is subject to the risk that geopolitical events will disrupt securities
markets and adversely affect global
economies and markets. Local, regional or global events such as war, military
conflicts, acts of terrorism, natural
disasters, the spread of infectious illness or other public health issues, or
other events could have a significant impact on the
Fund and its investments.
Modeling
Risk: The Adviser uses
quantitative models in an effort to enhance returns and manage risk. Any
imperfections, errors or
limitations in these models could limit any benefit to the Fund from the use of
the models, or could result in
incorrect outputs or in investment outcomes different from or opposite to those
expected or desired by the Adviser. There
can be no assurance that the models will behave as expected in all market
conditions. In addition, computer
programming used to create quantitative models, or the data on which such models
operate, might contain one or more
errors.
Mortgage-Related
and Other Asset-Backed Securities Risk: Investments in
mortgage-related and other asset-backed securities are
subject to the risk of significant credit downgrades, illiquidity, and defaults
to a greater extent than many other
types of fixed-income investments. The liquidity of mortgage-related and
asset-backed securities may change over
time. During periods of falling interest rates, mortgage- and asset-backed
securities may be called or prepaid, which
may result in the Fund having to reinvest proceeds in other investments at a
lower interest rate. During periods of
rising interest rates, the average life of mortgage- and asset-backed securities
may extend, which may lock in a
below-market interest rate, increase the security's duration and interest rate
sensitivity, and reduce the value of the
security. Enforcing rights against the underlying assets or collateral may be
difficult, and the underlying assets or
collateral may be insufficient if the issuer
defaults.
Non-U.S.
Securities Risk: Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks
not present in domestic investments. There may be less information publicly
available about a non-U.S. entity than
about a U.S. entity, and many non-U.S. entities are not subject to accounting,
auditing, legal and financial report
standards comparable to those in the United States. Further, such entities
and/or their securities may be subject to
risks associated with currency controls; expropriation; changes in tax policy;
greater market volatility; differing
securities market structures; higher transaction costs; and various
administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. Securities
traded on foreign mar
29
kets
may be less liquid (harder to sell) than securities traded domestically. Foreign
governments may impose restrictions on the
repatriation of capital to the U.S. In addition, to the extent that the
Fund buys securities denominated in a foreign
currency, there are special risks such as changes in currency exchange rates and
the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of
countries, events in those countries will have a more significant impact on the
Fund. Investments in depositary
receipts may be less liquid and more volatile than the underlying shares in
their primary trading
market.
Real
Estate Sector Risk: An investment in
a real property company may be subject to risks similar to those
associated with direct
ownership of real estate, including, by way of example, the possibility of
declines in the value of real estate,
losses from casualty or condemnation, and changes in local and general economic
conditions, supply and demand,
interest rates, environmental liability, zoning laws, regulatory limitations on
rents, property taxes, and operating
expenses. Some real property companies have limited diversification because they
invest in a limited number of properties, a
narrow geographic area, or a single type of
property.
REIT
Risk: Real estate
investment trusts (“REITs”) are subject to
the risks associated with investing in the securities of real property
companies. In particular, REITs may be affected by changes in the values of the
underlying properties that they own or
operate. Further, REITs are dependent upon specialized management skills, and
their investments may be
concentrated in relatively few properties, or in a small geographic area or a
single property type. REITs are also subject
to heavy cash flow dependency and, as a result, are particularly reliant on the
proper functioning of capital markets.
A variety of economic and other factors may adversely affect a lessee's ability
to meet its obligations to a REIT. In
the event of a default by a lessee, the REIT may experience delays in enforcing
its rights as a lessor and may incur
substantial costs associated in protecting its investments. In addition, a REIT
could fail to qualify for favorable
regulatory treatment.
Restricted
Securities Risk: The Fund may
hold securities that have not been registered for sale to the public under
the
U.S. federal securities laws. There can be no assurance that a trading market
will exist at any time for any particular restricted
security. Limitations on the resale of these securities may have an adverse
effect on their marketability, and may prevent
the Fund from disposing of them promptly at reasonable prices. The Fund may have
to bear the expense of
registering the securities for resale and the risk of substantial delays in
effecting the registration. Also, restricted
securities may be difficult to value because market quotations may not be
readily available, and the securities may
have significant
volatility.
Small-,
Mid- and Micro-Capitalization Securities Risk: The securities
of small-, mid- and micro-capitalization companies may be
more volatile and may involve more risk than the securities of larger companies.
These companies may have limited
product lines, markets or financial resources, may lack the competitive strength
of larger companies, and may depend
on a few key employees. In addition, these companies may have been recently
organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller
volumes than more widely held securities. Some securities of smaller issuers may
be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such
securities at any time, or at a favorable price, in order to meet the Fund's
obligations. Returns on investments in securities of
small-, mid- and micro-capitalization companies could trail the returns on
investments in securities of larger
companies.
Unconstrained
Sector Risk: The Fund may
invest a substantial portion of its assets within one or more economic
sectors or
industries, which may change from time to time. Greater investment focus on one
or more sectors or industries
increases the potential for volatility and the risk that events negatively
affecting such sectors or industries could reduce
returns, potentially causing the value of the Fund's Shares to decrease, perhaps
significantly.
U.S.
Government Securities Risk: Certain U.S.
government securities are supported by the full faith and credit of the United
States; others are supported by the right of the issuer to borrow from the U.S.
Treasury; others are supported by the
discretionary authority of the U.S. government to purchase the agency's
obligations; and still others are supported
only by the credit of the issuing agency, instrumentality, or enterprise.
Although U.S. government-sponsored enterprises such
as the Federal Home Loan Mortgage Corporation (“Freddie
Mac”) and the Federal
National Mortgage
Association (“Fannie
Mae”) may be
chartered or sponsored by Congress, they are not funded by
Congressional appropriations,
and their securities are not issued by the U.S. Treasury, are not supported by
the full faith and credit of the
U.S. government, and involve increased credit
risks.
30
U.S.
Treasury Obligations Risk: U.S. Treasury
obligations may differ from other fixed income securities in their interest rates,
maturities, times of issuance and other characteristics. Similar to other
issuers, changes to the financial condition or
credit rating of the U.S. government may cause the value of the Fund's U.S.
Treasury obligations to decline.
Valuation
Risk: Some portfolio
holdings, potentially a large portion of the Fund's investment portfolio, may be
valued on the basis of
factors other than market quotations. This may occur more often in times of
market turmoil or reduced
liquidity. There are multiple methods that can be used to value a portfolio
holding when market quotations are not readily
available. The value established for any portfolio holding at a point in time
might differ from what would be produced
using a different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued
using techniques other than market quotations, including “fair
valued” securities, may
be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance
that the Fund could sell or close out a portfolio position for the value
established for it at any time, and it is
possible that the Fund would incur a loss because a portfolio position is sold
or closed out at a discount to the valuation
established by the Fund at that time. Investors who purchase or redeem Fund
Shares on days when the Fund is
holding fair-valued investments may receive fewer or more shares or lower or
higher redemption proceeds than they would
have received if the Fund had not fair-valued the holding(s) or had used a
different valuation methodology.
When-Issued,
TBA and Delayed Delivery Securities Risk: The Fund may
purchase securities on a when-issued, to-be-announced
(“TBA”) or delayed
delivery basis and may purchase securities on a forward commitment basis.
The
purchase price of the securities is typically fixed at the time of the
commitment, but delivery and payment can take place a
month or more after the date of the commitment. At the time of delivery of the
securities, the value may be more or less
than the purchase or sale price. Purchase of securities on a when-issued, TBA,
delayed delivery, or forward
commitment basis may give rise to investment leverage, and may result in
increased volatility of the Fund's NAV. Default by,
or bankruptcy of, a counterparty to a when-issued, TBA or delayed delivery
transaction would expose the Fund to
possible losses because of an adverse market action, expenses or delays in
connection with the purchase or sale of the
pools specified in such transaction. Rule amendments proposed by the Financial
Industry Regulatory Authority, Inc.
may impose mandatory margin requirements for certain types of when-issued, TBA
delayed delivery or
forward commitment transactions, with limited exceptions. Such transactions
require mandatory collateralization which may
increase the cost of such transactions and impose added operational
complexity.
Performance
Annual
Total Returns (years ended
12/31)
31
Average
Annual Total Returns (for periods
ended 12/31/22)
|
|
One
Year |
Five
Years |
Since
Inception |
Inception
Date |
|
Class
I |
|
|
|
|
|
Return
Before Taxes |
- |
|
|
|
|
Return
After Taxes on Distributions |
- |
|
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
- |
|
|
|
|
Class
K Returns Before Taxes |
- |
|
|
|
|
S&P
500 Index (reflects no deduction for fees, expenses or
taxes) |
- |
|
|
|
|
State
Street Target Retirement 2030 Composite Index (reflects no
deduction
for fees, expenses or taxes) |
- |
|
|
|
Investment
Adviser
SSGA FM serves as
the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Seamus Quinn and Michael Narkiewicz. Mr.
Quinn has served as a portfolio manager of the Fund since 2022 and Mr.
Narkiewicz has served as a portfolio manager
of the Fund since 2018.
Seamus
Quinn, CFA, CAIA, is a Principal of the Adviser and a Portfolio Manager in the
Investment Solutions Group. He joined the
Adviser in 2012.
Michael
Narkiewicz is a Vice President of the Adviser and a Senior Portfolio Manager in
the Investment Solutions Group. He joined the
Adviser in 2013.
Purchase
and Sale of Fund Shares
Purchase
Minimums
The
Fund's initial and subsequent investment minimums generally are as follows,
although the Fund may reduce or waive the minimums in
some cases.
|
Class
I |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
|
Class
K |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
|
Class
R3 |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
You may purchase
or redeem Fund Shares on any day the Fund is open for business.
Written
Requests and Wire Transfers. You may
purchase or redeem Fund Shares by written request or wire transfer.
32
Written requests
should be sent to:
By
Mail:
State Street
Funds
P.O. Box 219737
Kansas City, MO 64121-9737
P.O. Box 219737
Kansas City, MO 64121-9737
By
Overnight/Registered, Express, Certified Mail:
State Street
Funds
430 W 7th Street Suite 219737
Kansas City, MO 64105-1407
430 W 7th Street Suite 219737
Kansas City, MO 64105-1407
By
Intermediary:
If
you wish to purchase or redeem Fund Shares through a broker, bank or other
financial intermediary (“Financial
Intermediary”), please contact
that Financial Intermediary directly. Your Financial Intermediary may have
different or additional requirements for
opening an account and/or for the processing of purchase and redemption orders,
or may be closed at times
when the Fund is open. Financial Intermediaries may contact SS&C GIDS,
Inc. at (877) 332-6207 or via email at
nsccresearch@dstsystems.com with questions.
Tax
Information
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan or IRA.
Any withdrawals made from such
tax-advantaged arrangement may be taxable to you.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other Financial Intermediary
(such as a bank), the Adviser or its affiliates may
pay the Financial Intermediary for certain activities related to the Fund,
including educational training programs, conferences, the
development of technology platforms and reporting systems, or other services
related to the sale or promotion
of the Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your Financial
Intermediary's website for more information.
33
State
Street Target Retirement 2035 Fund
Investment
Objective
The
investment objective of the State Street Target Retirement 2035 Fund (the
“Target Retirement
2035 Fund” or the
“Fund”) is to seek
capital growth and income over the long
term.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell shares of the Fund (“Fund Shares”). You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries which
are not reflected in the tables and examples
below.
Shareholder
Fees (fees paid
directly from your investment)
|
|
Class
I |
Class
K |
Class
R3 |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the lower of the sale
proceeds or the
original
offering price) |
|
|
|
Annual
Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment)
|
|
Class
I |
Class
K |
Class
R3 |
|
Management
Fee |
|
|
|
|
Distribution
and/or Shareholder Service (12b-1) Fees |
|
|
|
|
Other
Expenses1
|
|
|
|
|
Acquired
Fund Fees and Expenses |
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
Less
Fee Waivers and/or Expense Reimbursements2
|
( |
( |
( |
|
Total
Annual Fund Operating Expenses After Fee Waivers and/or Expense
Reimbursements |
|
|
|
1
2
Example:
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated, and
then sell or hold all of your Fund Shares at
the end of those periods. The Example also assumes that your investment has a 5%
return each year and that the
Fund's operating expenses remain the same. The calculation of costs for the
one-year period takes into account the
effect of any current contractual fee waivers and/or reimbursements; and the
calculation of costs for the remaining periods
takes such fee waivers and/or reimbursements into account only for the first
year of each such period. Although your
actual costs may be higher or lower, based on these assumptions your costs would
be:
34
|
|
1
year |
3
years |
5
years |
10
years |
|
Class
I |
$ |
$ |
$ |
$ |
|
Class
K |
$ |
$ |
$ |
$ |
|
Class
R3 |
$ |
$ |
$ |
$ |
Portfolio
Turnover:
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns
over” its portfolio). A
higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund Shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Example, affect the Fund's
performance. During the most
recent fiscal year, the Fund's portfolio turnover rate was 12 % of the average value of
its portfolio.
Principal
Investment Strategies
SSGA
Funds Management, Inc. (“SSGA
FM” or the
“Adviser”), the investment
adviser to the Fund, manages the Target Retirement 2035
Fund using a proprietary asset allocation strategy. The Fund is a “fund of
funds” that invests in a
combination of mutual funds
and ETFs sponsored by the Adviser or its affiliates (the “Underlying
Funds”). The Underlying
Funds may invest
in a wide variety of asset classes, including equity and fixed-income securities
of issuers anywhere in the world,
including emerging markets investments, and including, among others, high yield,
commodity, and real estate investments. The
Underlying Funds may invest in obligations of domestic U.S. issuers, non-U.S.
issuers, or both.
The
Fund is intended for investors expecting to retire around the year 2035 and who
are likely to stop making new investments in the Fund at
that time. The Fund is designed for an investor who plans to withdraw the value
of the investor's account gradually
following that date. The Adviser seeks to optimize the Fund's “glide
path” for the wealth
accumulation, wealth
preservation, and income generation phases of retirement planning and includes
adjustments in the critical years immediately
preceding and following the retirement date. For example, a Fund with a target
retirement date far into the future will
typically invest a greater portion of its assets in asset classes with higher
risk profiles and the potential for higher returns.
As the target date for a Fund approaches, the Adviser will adjust the asset
allocation and risk profile of the Fund – its
glide path – to what is generally seen to be a more conservative approach to
reduce (but not to eliminate) risk by
increasing the allocation to asset classes that have historically been subject
to lower levels of volatility. A fund intended for
investors who have already achieved retirement age would typically invest a
greater portion of its assets in bonds and cash
items, with a relatively smaller allocation to equity securities.
The
Underlying Funds employ a wide array of investment styles. For example, the
Underlying Funds can buy and sell common stocks of
companies of any size, corporate bonds of varying credit quality, U.S.
government and agency bonds, mortgage- and
asset-backed securities, commodities, real estate and money market instruments.
They may hold U.S. or non-U.S.
investments. The Underlying Funds may use derivative instruments of any kind,
including futures contracts, forward currency
contracts, credit default swaps, interest rate swaps and commodities-related
derivatives. Derivatives may be used by an
Underlying Fund for hedging or risk management purposes, as a substitute for
direct investment, or otherwise to seek
to enhance the Underlying Fund's total
return.
35
The
glide path depicted in the chart below shows how the Fund's strategic target
allocations among asset classes are expected
generally to place more emphasis on fixed income investments and less on equity
investments as the target retirement date
approaches.
The
glide path shows the Fund's long term strategic target allocations. The Fund's
actual allocations may differ. The Adviser
periodically reviews the Fund's target asset allocations and may, at any time,
in its discretion, change the target asset allocations
or deviate from the target asset allocations when it believes doing so is
appropriate to pursue the Fund's investment
objective. The glide path is presented only as an illustration of how the
process of re-allocation occurs as the Fund approaches
its target date.
The
following table shows the Fund's strategic target allocations to the Underlying
Funds as of the date of this Prospectus.
|
Underlying
Funds |
Target
Retirement
2035
Fund |
|
State
Street Equity 500 Index II Portfolio |
32.21% |
|
State
Street Small/Mid Cap Equity Index Portfolio |
9.26% |
|
State
Street Global All Cap Equity ex-U.S. Index Portfolio |
30.65% |
|
State
Street Aggregate Bond Index Portfolio |
14.00% |
|
SPDR
Bloomberg 1-10 Year TIPS ETF |
0.00% |
|
SPDR
Bloomberg High Yield Bond ETF |
3.88% |
|
SPDR
Dow Jones Global Real Estate ETF |
0.00% |
|
SPDR
Portfolio Long Term Treasury ETF |
10.00% |
|
SPDR
Portfolio Short Term Treasury ETF |
0.00% |
|
SPDR
Portfolio Short Term Corporate Bond ETF |
0.00% |
The
Fund's actual allocations are expected to differ over time. The Adviser
periodically reviews the Fund's target allocations to underlying
investment options and may, at any time, in its discretion, change the target
allocations or deviate from the target
allocations when it believes doing so is appropriate to pursue the Fund's
investment objective. The Adviser
36
may
modify the selection of Underlying Funds from time to time, and may invest in
other Underlying Funds, including any Underlying Funds
that may be created in the future. The table is presented for illustrative
purposes only. More current information
regarding the Fund's allocations may be available on its website:
www.ssga.com.
Principal
Risks
The
Fund is subject to the following principal risks. You could lose money by investing in the
Fund. Certain risks relating to instruments
and strategies used in the management of the Fund are placed first. The
significance of any specific risk to an investment
in the Fund will vary over time, depending on the composition of the Fund's
portfolio, market conditions, and other
factors. You should read all of the risk information presented below carefully,
because any one or more of these risks may
result in losses to the Fund. An investment in the
Fund is subject to investment risks, including possible loss of
principal, is not a deposit in a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any
other government agency. The Fund may not
achieve its investment objective. An investment in the
Fund is not guaranteed, and you may experience losses, including losses near,
at, or after the target date. There is no
guarantee that the Fund will provide adequate portfolio growth or income at and
through your retirement. The Fund is not
intended to be a complete investment program, but rather is intended for
investment as part of a diversified
investment portfolio. Investors should consult their own advisers as to the role
of the Fund in their overall investment
programs. Except as otherwise stated, references in this section to “the
Fund” or “a
Fund” may relate to the
Fund, one or more
Underlying Funds, or both. The risks described below may arise out of the Fund's
direct investments or the Fund's
investments in one or more of the Underlying Funds. All or a portion of the
Underlying Funds are managed pursuant to a
passive investment strategy, while the Fund is managed pursuant to an active
investment strategy. You will find
additional information about each Underlying Fund's risks in its prospectus and
SAI.
Asset
Allocation Risk: The Fund's
investment performance depends upon the successful allocation by the Adviser
of
the Fund's assets among asset classes, geographical regions, industry sectors,
and specific issuers and investments. There is no
guarantee that the Adviser's allocation techniques and decisions will produce
the desired results.
Risk
of Investment in Other Pools: When the Fund
invests in another pooled investment vehicle, it is exposed to the risk that the
other pool will not perform as expected and is exposed indirectly to all of the
risks applicable to an investment in
such other pool. The investment policies of the other pool may not be the same
as those of the Fund; as a result, an
investment in the other pool may be subject to additional or different risks
than those to which the Fund is typically
subject. The Fund bears its proportionate share of the fees and expenses of any
pool in which it invests. The
Adviser or an affiliate may serve as investment adviser to a pool in which the
Fund may invest, leading to potential
conflicts of interest. It is possible that other clients of the Adviser or its
affiliates will purchase or sell interests in a
pool sponsored or managed by the Adviser or its affiliates at prices and at
times more favorable than those at which
the Fund does so.
Target
Date Assumptions Risk: This is the risk
that assumptions and forecasts used by the Adviser in developing the Fund's asset
allocation glide path are not in line with actual future investment returns and
participant savings activities, which
could result in losses near, at, or after the target date year or could result
in the Fund not providing adequate income
at and through retirement.
Longevity
Risk: This is the risk
that you will outlive your retirement assets.
Below
Investment-Grade Securities Risk: Lower-quality
debt securities (“high
yield” or “junk” bonds) are
considered predominantly
speculative, and can involve a substantially greater risk of default than higher
quality debt securities. Issuers of
lower-quality debt securities may have substantially greater risk of insolvency
or bankruptcy than issuers of
higher-quality debt securities. They can be illiquid, and their values can have
significant volatility and may decline
significantly over short periods of time. Lower-quality debt securities tend to
be more sensitive to adverse news about the
issuer, or the market or economy in general.
Commodities
Risk: Commodity prices
can have significant volatility, and exposure to commodities can cause the
net
asset value (“NAV”) of Fund Shares
to decline or fluctuate in a rapid and unpredictable manner. A liquid
secondary market may not
exist for certain commodity investments, which may make it difficult for the
Fund to sell them at a desirable price
or at the price at which it is carrying
them.
37
Counterparty
Risk: The Fund will be
subject to credit risk with respect to the counterparties with which the Fund
enters into
derivatives contracts, repurchase agreements, reverse repurchase agreements, and
other transactions. If a counterparty
fails to meet its contractual obligations, the Fund may be unable to terminate
or realize any gain on the investment or
transaction, or to recover collateral posted to the counterparty, resulting in a
loss to the Fund. If the Fund holds
collateral posted by its counterparty, it may be delayed or prevented from
realizing on the collateral in the event of a
bankruptcy or insolvency proceeding relating to the
counterparty.
Currency
Risk: The value of the
Fund's assets may be affected favorably or unfavorably by currency exchange
rates, currency
exchange control regulations, and delays, restrictions or prohibitions on the
repatriation of foreign currencies.
Foreign currency exchange rates may have significant volatility, and changes in
the values of foreign currencies
against the U.S. dollar may result in substantial declines in the values of the
Fund's assets denominated in foreign
currencies.
Debt
Securities Risk: The values of
debt securities may increase or decrease as a result of the following: market
fluctuations,
changes in interest rates, actual or perceived inability or unwillingness of
issuers, guarantors or liquidity providers to
make scheduled principal or interest payments, or illiquidity in debt securities
markets. To the extent that interest
rates rise, certain underlying obligations may be paid off substantially slower
than originally anticipated and the value of
those securities may fall sharply. A rising interest rate environment may cause
the value of the Fund's fixed
income securities to decrease, an adverse impact on the liquidity of the Fund's
fixed income securities, and increased
volatility of the fixed income markets. During periods when interest rates are
at low levels, the Fund's yield can be low,
and the Fund may have a negative yield (i.e., it may lose money on an operating
basis). To the extent that
interest rates fall, certain underlying obligations may be paid off
substantially faster than originally anticipated. If the principal
on a debt obligation is prepaid before expected, the prepayments of principal
may have to be reinvested in
obligations paying interest at lower rates. During periods of falling interest
rates, the income received by the Fund may
decline. Changes in interest rates will likely have a greater effect on the
values of debt securities of longer
durations. Returns on investments in debt securities could trail the returns on
other investment options, including
investments in equity securities. The U.S. Federal Reserve has been engaged in
an aggressive campaign to raise interest
rates in an effort to combat historically high levels of inflation. Interest
rate increases may continue. High levels of
inflation and/or a significantly changing interest rate environment can lead to
heightened levels of volatility and
reduced liquidity.
Depositary
Receipts Risk: Investments in
depositary receipts may be less liquid and more volatile than the
underlying securities in
their primary trading market. If a depositary receipt is denominated in a
different currency than its underlying
securities, the Fund will be subject to the currency risk of both the investment
in the depositary receipt and the
underlying security. Holders of depositary receipts may have limited or no
rights to take action with respect to the underlying
securities or to compel the issuer of the receipts to take action. The prices of
depositary receipts may differ from
the prices of securities upon which they are based. To the extent the Fund
invests in depositary receipts based on
securities included in the Index, such differences in prices may increase index
tracking risk.
Derivatives
Risk: Derivative
transactions can create investment leverage and may have significant volatility.
It is possible that a
derivative transaction will result in a much greater loss than the principal
amount invested, that changes in the value of a
derivative transaction may not correlate perfectly with the underlying asset,
and that the Fund may not be able to
close out a derivative transaction at a favorable time or price. The
counterparty to a derivatives contract may be unable or
unwilling to make timely settlement payments, return the Fund's margin, or
otherwise honor its obligations.
A derivatives transaction may not behave in the manner anticipated by the
Adviser or may not have the effect on the
Fund anticipated by the
Adviser.
Emerging
Markets Risk: Risks of
investing in emerging markets include, among others, greater political and
economic instability,
greater volatility in currency exchange rates, less developed securities
markets, possible trade barriers, currency
transfer restrictions, a more limited number of potential buyers and issuers, an
emerging market country's dependence on
revenue from particular commodities or international aid, less governmental
supervision and regulation,
unavailability of currency hedging techniques, differences in auditing and
financial reporting standards, less stringent
investor protection and disclosure standards, less developed public health
systems, and less developed legal
systems. There is also the potential for unfavorable action such as
expropriation, nationalization, embargo, and acts
of war. The securities of emerging market companies may trade less frequently
and in smaller volumes than more
widely held securities. Market disruptions or substantial market corrections may
limit very significantly the liquidity of
securities of certain companies in a particular country or geographic region, or
of all compa
38
nies
in the country or region. The Fund may be unable to liquidate its positions in
such securities at any time, or at a favorable
price, in order to meet the Fund's obligations. These risks are generally
greater for investments in frontier market
countries, which typically have smaller economies or less developed capital
markets than traditional emerging market
countries.
Equity
Investing Risk: The market
prices of equity securities owned by the Fund may go up or down, sometimes
rapidly or
unpredictably. The value of a security may decline for a number of reasons that
may directly relate to the issuer and also
may decline due to general industry or market conditions that are not
specifically related to a particular company. In
addition, equity markets tend to move in cycles, which may cause stock prices to
fall over short or extended
periods of time.
Geographic
Focus Risk: The performance
of a fund that is less diversified across countries or geographic regions
will
be closely tied to market, currency, economic, political, environmental, or
regulatory conditions and developments in the countries
or regions in which the fund invests, and may be more volatile than the
performance of a more geographically-diversified
fund.
Income
Risk: The Fund's
income may decline due to falling interest rates or other factors. Issuers of
securities held by the Fund may
call or redeem the securities during periods of falling interest rates, and the
Fund would likely be required to
reinvest in securities paying lower interest rates. If an obligation held by the
Fund is prepaid, the Fund may have to
reinvest the prepayment in other obligations paying income at lower
rates.
Indexing
Strategy/Index Tracking Risk: The Fund is
managed with an indexing investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the Index or of
the actual securities comprising the Index. This differs from an
actively-managed fund, which typically seeks to
outperform a benchmark index. As a result, the Fund's performance may be less
favorable than that of a portfolio managed
using an active investment strategy. The structure and composition of the Index
will affect the performance,
volatility, and risk of the Index and, consequently, the performance,
volatility, and risk of the Fund. While the Adviser
seeks to track the performance of the Index (i.e., achieve a high
degree of correlation with the Index), the
Fund's return may not match the return of the Index. The Fund incurs a number of
operating expenses not applicable to
the Index, and incurs costs in buying and selling securities. In addition, the
Fund may not be fully invested at
times, generally as a result of cash flows into or out of the Fund or reserves
of cash held by the Fund to meet redemptions.
The Adviser may attempt to replicate the Index return by investing in fewer than
all of the securities in the Index, or
in some securities not included in the Index, potentially increasing the risk of
divergence between the Fund's return
and that of the Index.
Inflation
Risk: Inflation risk
is the risk that the value of assets or income from investments will be less in
the future as inflation
decreases the value of money. As inflation increases, the values of a fund's
assets can decline. Inflation rates may change
frequently and drastically as a result of various factors and the Fund's
investments may not keep pace with
inflation, which may result in losses to Fund investors or adversely affect the
real value of shareholders' investments in
the Fund. Recently, inflation levels have been at their highest point in
nearly 40 years, and the Federal Reserve has
begun an aggressive campaign to raise certain benchmark interest rates in an
effort to combat inflation. As
such, fixed income securities markets may experience heightened levels of
interest rate volatility and liquidity
risk.
Inflation-Indexed
Securities Risk: The principal
amount of an inflation-indexed security typically increases with inflation and
decreases with deflation, as measured by a specified index. It is possible that,
in a period of declining inflation rates,
the Fund could receive at maturity less than the initial principal amount of an
inflation-indexed security. Changes in the
values of inflation-indexed securities may be difficult to predict, and it is
possible that an investment in such
securities will have an effect different from that anticipated by the
Adviser.
IPO
Risk: The Fund may at
times have the opportunity to invest in securities offered in initial public
offerings (“IPOs”). IPOs involve
companies that have no public operating history and therefore entail more risk
than established public companies. The
prices of securities offered in IPOs can have significant volatility and the
Fund may lose money on an investment in
such securities. IPO investments in which other clients of the Adviser invest
may not be made available to the
Fund.
39
Large-Capitalization
Securities Risk: Returns on
investments in securities of large companies could trail the returns
on
investments in securities of smaller and mid-sized companies. Larger companies
may be unable to respond as quickly as
smaller and mid-sized companies to competitive challenges or to changes in
business, product, financial, or other
market conditions. Larger companies may not be able to maintain growth at the
high rates that may be achieved by
well-managed smaller and mid-sized
companies.
Large
Shareholder Risk: To the extent a
large proportion of the shares of the Fund are held by a small number of
shareholders (or
a single shareholder), including funds or accounts over which the Adviser has
investment discretion, the Fund is
subject to the risk that these shareholders will purchase or redeem Fund Shares
in large amounts rapidly or
unexpectedly, including as a result of an asset allocation decision made by the
Adviser. These transactions could adversely
affect the ability of the Fund to conduct its investment
program.
Liquidity
Risk: Lack of a ready
market, stressed market conditions, or restrictions on resale may limit the
ability of the Fund to sell
a security at an advantageous time or price or at all. Illiquid investments may
trade at a discount from comparable, more
liquid investments and may be subject to wide fluctuations in market value.
Illiquidity of the Fund's holdings may also
limit the ability of the Fund to obtain cash to meet redemptions on a timely
basis. In addition, the Fund, due to
limitations on investments in any illiquid investments and/or the difficulty in
purchasing and selling such investments, may
be unable to achieve its desired level of exposure to a certain market or
sector.
Management
Risk: The Fund is
actively managed. The Adviser's judgments about the attractiveness, relative
value, or potential
appreciation of a particular sector, security, commodity or investment strategy
may prove to be incorrect, and may cause the
Fund to incur losses. There can be no assurance that the Adviser's investment
techniques and decisions will
produce the desired
results.
Market
Risk: The Fund's
investments are subject to changes in general economic conditions, general
market fluctuations and the risks
inherent in investment in securities markets. Investment markets can be volatile
and prices of investments can
change substantially due to various factors including, but not limited to,
economic growth or recession, changes in
interest rates, inflation, changes in the actual or perceived creditworthiness
of issuers, and general market liquidity.
The Fund is subject to the risk that geopolitical events will disrupt securities
markets and adversely affect global
economies and markets. Local, regional or global events such as war, military
conflicts, acts of terrorism, natural
disasters, the spread of infectious illness or other public health issues, or
other events could have a significant impact on the
Fund and its investments.
Modeling
Risk: The Adviser uses
quantitative models in an effort to enhance returns and manage risk. Any
imperfections, errors or
limitations in these models could limit any benefit to the Fund from the use of
the models, or could result in
incorrect outputs or in investment outcomes different from or opposite to those
expected or desired by the Adviser. There
can be no assurance that the models will behave as expected in all market
conditions. In addition, computer
programming used to create quantitative models, or the data on which such models
operate, might contain one or more
errors.
Mortgage-Related
and Other Asset-Backed Securities Risk: Investments in
mortgage-related and other asset-backed securities are
subject to the risk of significant credit downgrades, illiquidity, and defaults
to a greater extent than many other
types of fixed-income investments. The liquidity of mortgage-related and
asset-backed securities may change over
time. During periods of falling interest rates, mortgage- and asset-backed
securities may be called or prepaid, which
may result in the Fund having to reinvest proceeds in other investments at a
lower interest rate. During periods of
rising interest rates, the average life of mortgage- and asset-backed securities
may extend, which may lock in a
below-market interest rate, increase the security's duration and interest rate
sensitivity, and reduce the value of the
security. Enforcing rights against the underlying assets or collateral may be
difficult, and the underlying assets or
collateral may be insufficient if the issuer
defaults.
Non-U.S.
Securities Risk: Non-U.S.
securities (including depositary receipts) are subject to political,
regulatory, and economic risks
not present in domestic investments. There may be less information publicly
available about a non-U.S. entity than
about a U.S. entity, and many non-U.S. entities are not subject to accounting,
auditing, legal and financial report
standards comparable to those in the United States. Further, such entities
and/or their securities may be subject to
risks associated with currency controls; expropriation; changes in tax policy;
greater market volatility; differing
securities market structures; higher transaction costs; and various
administrative difficulties, such as delays in clearing and
settling portfolio transactions or in receiving payment of dividends. Securities
traded on foreign mar
40
kets
may be less liquid (harder to sell) than securities traded domestically. Foreign
governments may impose restrictions on the
repatriation of capital to the U.S. In addition, to the extent that the
Fund buys securities denominated in a foreign
currency, there are special risks such as changes in currency exchange rates and
the risk that a foreign government could
regulate foreign exchange transactions. In addition, to the extent investments
are made in a limited number of
countries, events in those countries will have a more significant impact on the
Fund. Investments in depositary
receipts may be less liquid and more volatile than the underlying shares in
their primary trading
market.
Real
Estate Sector Risk: An investment in
a real property company may be subject to risks similar to those
associated with direct
ownership of real estate, including, by way of example, the possibility of
declines in the value of real estate,
losses from casualty or condemnation, and changes in local and general economic
conditions, supply and demand,
interest rates, environmental liability, zoning laws, regulatory limitations on
rents, property taxes, and operating
expenses. Some real property companies have limited diversification because they
invest in a limited number of properties, a
narrow geographic area, or a single type of
property.
REIT
Risk: Real estate
investment trusts (“REITs”) are subject to
the risks associated with investing in the securities of real property
companies. In particular, REITs may be affected by changes in the values of the
underlying properties that they own or
operate. Further, REITs are dependent upon specialized management skills, and
their investments may be
concentrated in relatively few properties, or in a small geographic area or a
single property type. REITs are also subject
to heavy cash flow dependency and, as a result, are particularly reliant on the
proper functioning of capital markets.
A variety of economic and other factors may adversely affect a lessee's ability
to meet its obligations to a REIT. In
the event of a default by a lessee, the REIT may experience delays in enforcing
its rights as a lessor and may incur
substantial costs associated in protecting its investments. In addition, a REIT
could fail to qualify for favorable
regulatory treatment.
Restricted
Securities Risk: The Fund may
hold securities that have not been registered for sale to the public under
the
U.S. federal securities laws. There can be no assurance that a trading market
will exist at any time for any particular restricted
security. Limitations on the resale of these securities may have an adverse
effect on their marketability, and may prevent
the Fund from disposing of them promptly at reasonable prices. The Fund may have
to bear the expense of
registering the securities for resale and the risk of substantial delays in
effecting the registration. Also, restricted
securities may be difficult to value because market quotations may not be
readily available, and the securities may
have significant
volatility.
Small-,
Mid- and Micro-Capitalization Securities Risk: The securities
of small-, mid- and micro-capitalization companies may be
more volatile and may involve more risk than the securities of larger companies.
These companies may have limited
product lines, markets or financial resources, may lack the competitive strength
of larger companies, and may depend
on a few key employees. In addition, these companies may have been recently
organized and may have
little or no track record of success. The securities of smaller companies may
trade less frequently and in smaller
volumes than more widely held securities. Some securities of smaller issuers may
be illiquid or may be restricted as to
resale, and their values may have significant volatility. The Fund may be unable
to liquidate its positions in such
securities at any time, or at a favorable price, in order to meet the Fund's
obligations. Returns on investments in securities of
small-, mid- and micro-capitalization companies could trail the returns on
investments in securities of larger
companies.
Unconstrained
Sector Risk: The Fund may
invest a substantial portion of its assets within one or more economic
sectors or
industries, which may change from time to time. Greater investment focus on one
or more sectors or industries
increases the potential for volatility and the risk that events negatively
affecting such sectors or industries could reduce
returns, potentially causing the value of the Fund's Shares to decrease, perhaps
significantly.
U.S.
Government Securities Risk: Certain U.S.
government securities are supported by the full faith and credit of the United
States; others are supported by the right of the issuer to borrow from the U.S.
Treasury; others are supported by the
discretionary authority of the U.S. government to purchase the agency's
obligations; and still others are supported
only by the credit of the issuing agency, instrumentality, or enterprise.
Although U.S. government-sponsored enterprises such
as the Federal Home Loan Mortgage Corporation (“Freddie
Mac”) and the Federal
National Mortgage
Association (“Fannie
Mae”) may be
chartered or sponsored by Congress, they are not funded by
Congressional appropriations,
and their securities are not issued by the U.S. Treasury, are not supported by
the full faith and credit of the
U.S. government, and involve increased credit
risks.
41
U.S.
Treasury Obligations Risk: U.S. Treasury
obligations may differ from other fixed income securities in their interest rates,
maturities, times of issuance and other characteristics. Similar to other
issuers, changes to the financial condition or
credit rating of the U.S. government may cause the value of the Fund's U.S.
Treasury obligations to decline.
Valuation
Risk: Some portfolio
holdings, potentially a large portion of the Fund's investment portfolio, may be
valued on the basis of
factors other than market quotations. This may occur more often in times of
market turmoil or reduced
liquidity. There are multiple methods that can be used to value a portfolio
holding when market quotations are not readily
available. The value established for any portfolio holding at a point in time
might differ from what would be produced
using a different methodology or if it had been priced using market quotations.
Portfolio holdings that are valued
using techniques other than market quotations, including “fair
valued” securities, may
be subject to greater
fluctuation in their valuations from one day to the next than if market
quotations were used. In addition, there is no assurance
that the Fund could sell or close out a portfolio position for the value
established for it at any time, and it is
possible that the Fund would incur a loss because a portfolio position is sold
or closed out at a discount to the valuation
established by the Fund at that time. Investors who purchase or redeem Fund
Shares on days when the Fund is
holding fair-valued investments may receive fewer or more shares or lower or
higher redemption proceeds than they would
have received if the Fund had not fair-valued the holding(s) or had used a
different valuation methodology.
When-Issued,
TBA and Delayed Delivery Securities Risk: The Fund may
purchase securities on a when-issued, to-be-announced
(“TBA”) or delayed
delivery basis and may purchase securities on a forward commitment basis.
The
purchase price of the securities is typically fixed at the time of the
commitment, but delivery and payment can take place a
month or more after the date of the commitment. At the time of delivery of the
securities, the value may be more or less
than the purchase or sale price. Purchase of securities on a when-issued, TBA,
delayed delivery, or forward
commitment basis may give rise to investment leverage, and may result in
increased volatility of the Fund's NAV. Default by,
or bankruptcy of, a counterparty to a when-issued, TBA or delayed delivery
transaction would expose the Fund to
possible losses because of an adverse market action, expenses or delays in
connection with the purchase or sale of the
pools specified in such transaction. Rule amendments proposed by the Financial
Industry Regulatory Authority, Inc.
may impose mandatory margin requirements for certain types of when-issued, TBA
delayed delivery or
forward commitment transactions, with limited exceptions. Such transactions
require mandatory collateralization which may
increase the cost of such transactions and impose added operational
complexity.
Performance
Annual
Total Returns (years ended
12/31)
42
Average
Annual Total Returns (for periods
ended 12/31/22)
|
|
One
Year |
Five
Years |
Since
Inception |
Inception
Date |
|
Class
I |
|
|
|
|
|
Return
Before Taxes |
- |
|
|
|
|
Return
After Taxes on Distributions |
- |
|
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
- |
|
|
|
|
Class
K Returns Before Taxes |
- |
|
|
|
|
S&P
500 Index (reflects no deduction for fees, expenses or
taxes) |
- |
|
|
|
|
State
Street Target Retirement 2035 Composite Index (reflects no
deduction
for fees, expenses or taxes) |
- |
|
|
|
Investment
Adviser
SSGA FM serves as
the investment adviser to the Fund.
The
professionals primarily responsible for the day-to-day management of the Fund
are Seamus Quinn and Michael Narkiewicz. Mr.
Quinn has served as a portfolio manager of the Fund since 2022 and Mr.
Narkiewicz has served as a portfolio manager
of the Fund since 2018.
Seamus
Quinn, CFA, CAIA, is a Principal of the Adviser and a Portfolio Manager in the
Investment Solutions Group. He joined the
Adviser in 2012.
Michael
Narkiewicz is a Vice President of the Adviser and a Senior Portfolio Manager in
the Investment Solutions Group. He joined the
Adviser in 2013.
Purchase
and Sale of Fund Shares
Purchase
Minimums
The
Fund's initial and subsequent investment minimums generally are as follows,
although the Fund may reduce or waive the minimums in
some cases.
|
Class
I |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
|
Class
K |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
|
Class
R3 |
|
|
To
establish an account |
None |
|
To
add to an existing account |
None |
You may purchase
or redeem Fund Shares on any day the Fund is open for business.
Written
Requests and Wire Transfers. You may
purchase or redeem Fund Shares by written request or wire transfer.
43
Written requests
should be sent to:
By
Mail:
State Street
Funds
P.O. Box 219737
Kansas City, MO 64121-9737
P.O. Box 219737
Kansas City, MO 64121-9737
By
Overnight/Registered, Express, Certified Mail:
State Street
Funds
430 W 7th Street Suite 219737
Kansas City, MO 64105-1407
430 W 7th Street Suite 219737
Kansas City, MO 64105-1407
By
Intermediary:
If
you wish to purchase or redeem Fund Shares through a broker, bank or other
financial intermediary (“Financial
Intermediary”), please contact
that Financial Intermediary directly. Your Financial Intermediary may have
different or additional requirements for
opening an account and/or for the processing of purchase and redemption orders,
or may be closed at times
when the Fund is open. Financial Intermediaries may contact SS&C GIDS,
Inc. at (877) 332-6207 or via email at
nsccresearch@dstsystems.com with questions.
Tax
Information
The
Fund's distributions are expected to be taxed as ordinary income, qualified
dividend income and/or capital gains, unless you are
investing through a tax-advantaged arrangement, such as a 401(k) plan or IRA.
Any withdrawals made from such
tax-advantaged arrangement may be taxable to you.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase Fund Shares through a broker-dealer or other Financial Intermediary
(such as a bank), the Adviser or its affiliates may
pay the Financial Intermediary for certain activities related to the Fund,
including educational training programs, conferences, the
development of technology platforms and reporting systems, or other services
related to the sale or promotion
of the Fund. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your Financial
Intermediary's website for more information.
44
State
Street Target Retirement 2040 Fund
Investment
Objective
The
investment objective of the State Street Target Retirement 2040 Fund (the
“Target Retirement
2040 Fund” or the
“Fund”) is to seek
capital growth and income over the long
term.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell shares of the Fund (“Fund Shares”). You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries which
are not reflected in the tables and examples
below.
Shareholder
Fees (fees paid
directly from your investment)
|
|
Class
I |
Class
K |
Class
R3 |
|
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the lower of the sale
proceeds or the
original
offering price) |
|
|
|
Annual
Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment)
|
|
Class
I |
Class
K |
Class
R3 |
|
Management
Fee |
|
|
|
|
Distribution
and/or Shareholder Service (12b-1) Fees |
|
|
|
|
Other
Expenses1
|
|
|
|
|
Acquired
Fund Fees and Expenses |
|
|
|
|
|