Managed Target Protection Portfolios


...implement downside risk management.                                           

State Street Managed Target Protection Portfolios aim to provide exposure to global equities, while implementing downside risk management through a systematic investment process. You can choose to limit losses at predefined levels.

Investment Strategy

The strategy was developed to address the demand for downside protection using a systematic, rules-based approach to dynamically adjust exposure between global equities and short-term US Treasuries.

Protection Level

As the value of the portfolio approaches the predefined protection level (either 15% or 20%) based on the rolling 260-day highpoint, the exposure to global equities is reduced and the proceeds are moved into short-term treasuries. As the portfolio value increases above the protection level, the strategy is designed to reduce exposure to short-term US Treasuries and allocate to global equities.


When global equities exhibit increased volatility, the exposure to equities may be reduced. Conversely, as volatility subsides, the portfolio may reduce exposure to short-term US Treasuries. 

Key Facts

  • The portfolio provides diversified exposure to global equities through SPDR ETF's.
  • You get to choose the level of protection of either 15% or 20%.
  • Using a rules-based process, it dynamically allocates between US equities and short-term US Treasuries.
  • The portfolio is monitored daily and traded accordingly.
  • Targets, but does not guarantee, a protection level relative to the portfolio's rolling 260-day average.
  • When combined, the two approaches of Protection Level and Volatility, result in a strategy that can react quickly in fast moving markets.

Past performance is not a guarantee of future results. ETFs trade like stocks, are subject to investment risk, fluctuate in market value, and may trade at prices above or below the ETF's net asset value (NAV). Upon redemption, the value of fund shares may be worth more or less than their original cost. ETFs carry additional risks such as not being diversified, possible trading halts, and index tracking errors.​