Author Topic: Real Asset Fund - doh!  (Read 2614 times)

earthshine

  • 5 O'Clock Shadow
  • *
  • Posts: 39
Real Asset Fund - doh!
« on: January 07, 2016, 10:11:31 PM »
At the beginning of 2015 I reallocated fund in my 401k. this was prior to reading MMM.

I invested less than 20% of my account in the SSGA Real Asset Fund.

It sounded like a good idea at the time... It's down 16% at the moment. Doh!

Any input...thinking I will hold in hopes it will eventually go up again (dont plan to withdraw from 401k anytime soon for now). But am open to insights and appreciate any input!


---------------------------------------------------------------------

Prospectus pasted here:

SSGA Real Asset Fund - Class A
30 September 2015
The Fund seeks to offer broad, low cost exposure to the commodities
futures markets, U.S. commercial real estate, natural resource stocks
and U.S. Treasury Inflation Protected Securities.
Investment Objective
The SSGA Real Asset Fund seeks to provide a total investment return to
approximate as closely as possible, before expenses, the performance of a
custom index (the “Index”) over the long term. The Fund seeks to approximate
its custom benchmark, which is comprised of 25% Bloomberg Roll Select
Commodity IndexSM, 30% S&P® Global LargeMidCap Commodity and
Resources Index, 15% Dow Jones U.S. Select REIT IndexSM, and 30% Barclays US
TIPS Index.
Investment Strategy
The Fund seeks to offer diversification and a disciplined rebalancing process
by investing in asset classes representing exposures of approximately 25% in
commodities, 30% in global natural resource stocks, 15% in U.S. Real Estate
Investment Trusts (REITs) and 30% in U.S. Treasury Inflation Protected Securities
(TIPS).
The allocation across the four broad asset classes are designed to provide
a long-term targeted return of U.S. CPI +4%, or real return of 4%, and risk,
as measured by standard deviation, of longer-dated U.S. Treasury inflation
protected securities over a full business cycle. Both of these metrics are based
on SSGA expectations for future returns, risk and correlations across the
included assets and cannot be guaranteed.
The Fund's asset class exposures are rebalanced to the strategic asset
allocation weights on a quarterly basis. Asset class misweights and increased
portfolio risk relative to the Index may occur as a result of intra-quarter market
movements. The Fund may allocate cash flows or partially rebalance the Fund
in efforts to reduce the asset class misweights or to maintain an active risk
level that is consistent with the objective.
The Fund, or any of the investment pools in which it invests, may hold a
portion of its assets in cash and cash instruments, including short-term
investment vehicles managed by SSGA or an affiliate. SSGA will not normally
enter into foreign currency exchange transactions for the Fund.
The Fund's return may not match the return of its index.
SSGA Real Asset Fund Class A (the "Fund") represents units of ownership in the SSGA Real Asset Non-Lending Series Fund.
Performance
Total Returns Fund Benchmark
Q3 2015 -10.19% -10.24%
YTD -12.28% -12.40%
1 Year -15.35% -15.41%
3 Year -6.19% -6.25%
5 Year -0.29% -0.49%
10 Year N/A N/A
Inception to Date (May 2010) -0.39% -0.57%
Best Year Since Inception (2012) 7.77% 7.77%
Worst Year Since Inception (2013) -4.48% -4.58%
The returns are provided in accordance with the description of the Fund's total expense ratio
information that can be found on the last page under the fee disclosure section of the fact
sheet. All returns greater than 1 year are annualized. Past performance is not a guarantee of
future results. Current performance may be lower or higher than the performance shown
above. Fund returns reflect all items of income, gain and loss and the reinvestment of
dividends and other income and are calculated in US dollars. Index returns are unmanaged and
do not reflect the deduction of any fees or expenses. Index returns reflect all items of income,
gain and loss and the reinvestment of dividends and other income.
Key Facts
y The Fund is passively managed
y The Fund invests in other investment pools, including other State Street
products
y The Funds investment pools in which the Strategy invests may use futures
and other derivatives
y The Fund (or any underlying investment pools) may not lend its portfolio
y The Fund is not a leveraged strategy
y The Fund will not sell securities short
The performance information for Real Asset Non-Lending Series Fund Class A prior to its inception (1 February 2012) is that of the Real Asset Non-Lending Series Fund Class C which reflects a Total
Annual Operating Expense Ratio of .22%, without adjustment for any differences in the fees/expenses of the classes. The Total Annual Operating Expense Ratio for Class C includes all indirect and
direct fees and expenses, which may include, among others, investment management, audit, custody, administration and legal fees. Had the Class A’s Total Annual Operating Expense Ratio of .05%
been reflected in the performance for the Class C, performance shown may have been different. See the “Fee Disclosure” section on the last page for a complete description of the Total Annual
Operating Expense Ratio of Class A.
The Dow Jones U.S. Select REIT IndexSM
The Dow Jones U.S. Select REIT Index is a market capitalization-weighted index comprising publicly traded real estate investment trusts (REITs). No special purpose or healthcare REITs are included.
The Index is rebalanced monthly and reconstituted quarterly. The Dow Jones U.S. Select REIT IndexSM is calculated and distributed by Dow Jones Indexes pursuant to an agreement with Dow Jones &
Company, Inc. Dow Jones is the service mark of Dow Jones & Company.
The Bloomberg Roll Select Commodity IndexSM
The Bloomberg Roll Select Commodity Index is a broad based commodity index. It is comprised of 20 commodity futures contracts spread across five main commodity groups: Agriculture, Energy,
Livestock, Industrial Metals and Precious Metals. The index aims to mitigate the effects of contango on index performance. For each commodity, the index rolls into the futures contract showing the
most backwardation or least contango, selecting from those contracts with nine months or fewer until expiration.
S&P® Global LargeMidCap Commodity and Resources Index
S&P Global LargeMidCap Commodity and Resources Index is comprised of S&P Global LargeMidCap constituents that are related to three natural resources buckets: Energy, Materials and Agriculture.
Each natural resources bucket is weighted approximately 33.33% providing a more balanced index. Standard & Poor's (S&P) Global LargeMidCap Commodity and Resources Index is a trademark of
Standard & Poor's Financial Services LLC and has been licensed for use by State Street Bank and Trust. The Products are not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard
& Poor's makes no representation regarding the advisability of investing in the Products.
The Barclays U.S. TIPS Bond Index
The Barclays U.S. TIPS Bond Index is limited to U.S. Treasury Inflation Protected Securities (TIPS). The coupon payments and underlying principal are automatically increased to compensate for inflation
as measured by the consumer price index (CPI). The maturities of the bonds in the index are more than one year. Barclays U.S. TIPS Bond Index is a trademark of Barclays, Inc.
The Fund is a collective investment trust and is not FDIC insured, nor is it an obligation or deposit of, or guaranteed by State Street Corporation, SSGA or its affiliates.
Please see the Fee Disclosure section on the last page for a complete disclosure of the Fund's total operating expense.
This individual strategy overview provides summary information regarding the Strategy. It should be read in conjunction with the Strategy's Disclosure Document which contains
important information about the Strategy, including a description of a number of risks.
SSGA Real Asset Fund - Class A 30 September 2015 State Street Global Advisors
Characteristics
REIT Fund
Number of Holdings 95
Weighted Average Market Cap ($M) $17,778.86
Natural Resource
Forward 12-mo P/E 14.7x
Price/Book 1.2x
Dividend Yield 4.34%
Number of Holdings 183
Turnover (As-of FYE 12/31) 50.76%
Weighted Average Market Cap ($M) $50,207.42
U.S. TIPS
Real Yield 0.53%
Real Duration 7.75
Convexity 1.09
Sector Weights
REITs
Apartments 19.22%
Malls 16.41
Healthcare 12.53
Office 11.22
Self-Storage 8.92
Strip Centers 8.60
Industrial 6.85
Hotels 6.80
Mixed Industrial/Office 3.84
Diversified 3.47
Manufactured Homes 1.58
Factory Outlets 0.56
Commodities (Bloomberg Roll Select Commodity Index)
Energy 33.84%
Agriculture 30.22
Precious Metals 16.14
Industrial Metals 15.09
Livestock 4.71
Natural Resource Stocks
Energy 35.27%
Agriculture 32.48
Materials 32.25
U.S. TIPS
Treasury 99.96%
Cash 0.04
Certain supplemental information may be rounded and may result in the total not adding up to 100.
Characteristics and allocations, if shown,are subject to change and should not be relied upon as current thereafter. This information should not be considered a recommendation to invest in a
particular sector or to buy or sell any security shown. It is not known whether the sectors or securities shown will be profitable in the future.
The portfolio turnover rate is as-of the prior fiscal year-end (“FYE”). It is calculated consistent with Form N-1A by dividing the lesser amounts of purchases or sales of portfolio securities (i.e., underlying
Fund shares) for the fiscal year by the monthly average value of the portfolio securities owned by the Fund during the fiscal year.
Asset Allocation
Benchmark Target Weights
Commodities Bloomberg Roll
Select Commodity Index 25%
Natural Resource Stocks S&P® Global LargeMidCap
Commodity and Resources Index 30%
REITs Dow Jones U.S. Select
REIT Index 15%
TIPS Barclays U.S. TIPS Index 30%
SSGA Real Asset Fund - Class A 30 September 2015 State Street Global Advisors
Important Message About Risk
This section explains some of the general risks involved with investing in the
Strategy, including possible loss of principal. Generally, among asset classes,
stocks are more volatile than bonds or short-term instruments. Stock values
fluctuate in response to the activities of individual companies and general
market and economic conditions and at times the risk level of the Strategy
may be greater than that of the U.S. stock market in general. In addition, the
Strategy may use derivative instruments which may involve additional risks
such as potential illiquidity of the markets, credit risk, currency risk, leverage
risk and counterparty risk.
This section does not purport to be a complete explanation; rather, an
investment in the Strategy is subject to a number of other risks, which are
described in more detail in the Strategy's Disclosure Document. Carefully
review the complete description of the risks prior to investing in the Strategy.
Further, there can be no guarantee that the Investment Objective of the
Strategy will be met. Risk management does not promise any level of
performance or guarantee against loss of principal. SSGA encourages investors
to seek the advice of well-qualified financial and tax advisors, accountants,
attorneys and other professionals before making any investment or retirement
decision.
Risk Management
SSGA monitors the Fund's portfolio on an ongoing basis to minimize variances
from its benchmark exposures, and initiates trades as part of the Fund's
rebalancing process or to accommodate periodic cash flows.
Fee Disclosure
The SSGA Real Asset Fund (the "Fund") seeks to achieve its investment objective by making direct investments in securities or by making investments in other investment funds, including those
managed by SSGA and its affiliates ("SSGA Funds"). The Fund indirectly bears a proportional share of the fees and expenses of the SSGA Funds in which the Fund invests ("Indirect Expenses") which
may include, among others, investment management, audit, custody, administration, and legal fees. Additionally, the Fund incurs direct fees and expenses ("Direct Expenses") which may include,
among others, custody, audit, administration, and legal fees. The investment management fee for Class A units of the Fund is assessed outside the Fund and not included as part of the Direct
Expenses, a portion (which may vary) may be paid to third-parties or intermediaries for recordkeeping, asset servicing, sub-accounting and communication services to plans invested in the Fund. The
Indirect Expenses combined with the Direct Expenses of the Fund (the "Total Annual Operating Expense Ratio") are not expected to exceed .05% annually. You should contact your Plan Administrator
for a complete description of the fees and expenses applicable to Class A units of the Fund, including the investment management fee.
The Total Annual Operating Expense Ratio of .05% reflects all indirect and direct fees and expenses associated with the Fund.Transaction costs (including, for example,brokerage costs, temporary
investments in SSGA exchange traded funds, and taxes, if any) are not reflected in the Total Annual Operating Expense Ratio but are reflected in the net performance returns of the Fund.The
investment manager does not assess or charge any fee in connection with the purchase or redemption of units of the Fund.
The following example is intended to help illustrate the impact of fees and expenses associated with an investment in the Class A units of the Fund (based upon the Total Annual Operating Expense
Ratio). It is intended to illustrate the hypothetical expense that you would incur over various time periods if you were to invest $10,000 in the Class A units of the Fund.This example assumes that the
Fund provides a return of 5% a year and that operating expenses of the Fund remain the same. The results apply whether or not you redeem your investment at the end of the given time period.
Example Fees: 1 year - $5.12; 3 years - $16.14; 5 years - $28.28; 10 years - $64.30
The example outlined above was for illustrative purposes only and does not represent the actual fees and expenses or the past or future performance of the Fund. Actual future fees and expenses
may be higher or lower than those shown.
Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions.
State Street regards the Fact Sheets in their distributed form to be complete documents that include material information regarding the Funds for investor consideration. You are
not authorized to make any material modifications to this information without our express consent, and we assume no liability in connection with these Plan Materials or with
regard to any modifications to or misuse of the information contained therein.
 Expiration Date: 2/29/2016
About SSGA
The Fund is managed by State Street Global Advisors (SSGA), the investment
management division of State Street Bank and Trust Company, and a global
leader in providing investment management solutions to clients worldwide.
To learn more about SSGA, visit our web site at www.ssga.com.

Heckler

  • Handlebar Stache
  • *****
  • Posts: 1346
Re: Real Asset Fund - doh!
« Reply #1 on: January 07, 2016, 10:33:52 PM »
My Canada All Cap is down 13.5%, and my emerging markets down 18%.  However, my US All cap is up 12.25% and EAFE is up 11.3%.  I'll be buying Canada and EM with new contributions to balance out to the planned allocation.



If that's your only holding, then yes - you may need to diversify globally more.

If it's only a part of your planned asset allocation, then what's the problem? - buy more to rebalance.

https://www.bogleheads.org/wiki/Getting_started



JZinCO

  • Pencil Stache
  • ****
  • Posts: 701
Re: Real Asset Fund - doh!
« Reply #2 on: January 07, 2016, 11:07:27 PM »
In my mind, one who is in the accrual stage of retirement investing has to have a good reason to hold a real asset fund before adding it to a portfolio. And 'diversification' is not a good answer. So ask yourself if there is a good reason for it to be in your portfolio. If it's part of your planned AA and you have justified holding on to it, then go ahead. I just know I don't have a reason to hold a real asset fund (or natural resources at all)...

earthshine

  • 5 O'Clock Shadow
  • *
  • Posts: 39
Re: Real Asset Fund - doh!
« Reply #3 on: January 08, 2016, 09:38:23 PM »
Thanks for the feedback.

It has real estate and energy and natural resources.

Am going to read a bit more on it before making a decision

Here is one article
http://www.investmentnews.com/article/20140410/FREE/140409893/advisers-warming-to-real-assets-as-stock-market-volatility-picks-up