The more capital that flows into index-based strategies, the likelier it is that mispricings will arise for skilled active managers to exploit 流入指數型策略的資金越多，就越有可能出現錯誤定價，讓熟練的主動型經理人加以利用。
That, in turn, may attract flows back into active strategies, if they do demonstrate an ability to add value net of fees 反過來，這可能會吸引資金回流至主動型策略，如果這些策略確實展現出扣除費用後的增值能力。
Rolling Monthly 3-Year Periods (1989-2023) 滾動每月 3 年週期 (1989-2023)
As fo 12/31/23. Data Sources: Morningstar and Hartford Funds, 2/24. 截至 12/31/23。資料來源：Morningstar 和 Hartford Funds，2/24。
More active management can lead to more efficiency and hence incentivises investors for passive products 更多的主動式管理可提高效率，從而激勵投資者購買被動式產品
Then more passive investors and retail noise traders may create more inefficiency, may make markets more fragile and reduce liquidity. The markets now are inefficient enough to produce opportunity for active managers 那麼更多的被動投資者和散戶噪音交易者可能會造成更多的低效率，可能會使市場更加脆弱，並降低流動性。目前市場的低效率足以為主動型經理人創造機會 "Working Paper, 10 February 2016. "工作文件，2016 年 2 月 10 日。
Underperformance rate across equity and fixed income 股票和固定收入的表現不佳率
10-Year Net- and Gross-of-Fees Underperformance Rates across All Equity and Fixed Income Institutional Account Categories 所有股票和固定收入機構帳戶類別的 10 年淨值和費用毛額表現不佳率
Summary - Indexing Advantages 摘要 - 索引的優勢
Index strategies tend to: 指數策略傾向於：
Reduced Fees and Trading Costs 降低費用和交易成本
Lower investment management fees can translate into better performance 較低的投資管理費用可以轉化為更好的績效
Lower transaction costs (lower turnover, internal crossing, gain market exposure through futures, etc) 降低交易成本（降低更換率、內部交叉、透過期貨獲得市場曝光等）
Allow broad exposure and increase diversification 允許廣泛曝露並增加分散性
Most efficient and cost-effective method to achieve broad, diversified equity exposure. 最有效率且最具成本效益的方法，以達到廣泛、分散的股票投資。
Consistent exposure and cost-effectively rebalance back for strategic asset allocation 一致的風險暴露，並以符合成本效益的方式重新平衡策略性資產配置
Offer strategies with simplicity and transparency 提供簡單透明的策略
Rules-based methodologies that eliminate unintended biases 基於規則的方法可消除意外偏差
Outperform active strategies in most asset classes 在大多數資產類別中表現優於主動型策略
Historical data shows Equity index funds have outperformed Active funds over the long term. 歷史數據顯示股票指數基金的長期表現優於主動型基金。
A Place for Both Active and Index Investing 主動型投資與指數投資皆有一席之地
Many world’s largest and sophisticated investors allocate assets to index funds due to clearer investment objectives, greater trading efficiencies, diversification and lower cost. 由於投資目標更明確、交易效率更高、更分散且成本更低，許多全球最大且經驗豐富的投資人將資產配置於指數基金。
Through research-based analysis of trading strategies, and explore cost and turnover reduction opportunities, skillful index managers can develop a precise implementation skill set to help investors to meet their risk return objective. 透過以研究為基礎的交易策略分析，並探討降低成本與交易額的機會，技巧高超的指數經理人可以發展一套精準的執行技巧，協助投資人達到風險回報的目標。
Strong active management can make sense in certain assets classes if implemented by an experienced/trusted investment manager. 如果由經驗豐富/值得信賴的投資經理執行，強大的主動式管理在某些資產類別中是合理的。
Proprietary Investment Platform 專屬投資平台
Designed to support our Investment Process 旨在支援我們的投資流程
Sources of Tracking Errors 追蹤錯誤的來源
We position our portfolios to generate the returns of their benchmarks as closely as practicable, before expenses, and while attempting to minimize transaction costs. Tracking error arises due to: 我們將投資組合定位在盡可能接近其基準的回報（未計費用），同時嘗試將交 易成本降至最低。追蹤誤差的產生原因如下
Impact of fund expenses 基金支出的影響
Transaction costs 交易成本
Impact of cash flows 現金流量的影響
Cumulative security mis-weights 累計證券錯誤權重
Compounding 複合
Futures 期貨
Dividend income tax differences 股利所得稅差額
Fair value pricing 公允價值定價
Substitutions 替換
Capital gains taxes 資本收益稅
Process for Managing Tracking Errors 管理追蹤錯誤的流程
Daily reviews by our portfolio management team, which assess tracking error expectations 我們的投資組合管理團隊每日進行檢討，評估追蹤誤差預期
An assessment of the tradeoffs between transaction costs and tracking error in the context of a well-diversified portfolio 評估在分散投資組合中交易成本與追蹤誤差之間的取捨
Employing one or more of the following strategies to manage tracking error: 採用下列一項或多項策略管理追蹤誤差：
Using index futures contracts where possible to minimize cash drag on the portfolio and stay fully invested; 盡可能使用指數期貨合約，以盡量減少現金對投資組合的拖累，並保持全額投資；
Minimizing mis-weights at the security, country and sector levels; 盡量減少安全、國家和部門層級的錯誤比重；
Keeping turnover at a minimum by limiting the number of times we rebalance and trade 透過限制我們重新平衡和交易的次數，將營業額保持在最低水平
Improving Risk Controls & Oversight Through Technology 透過技術改善風險控制與監督
Features of our portfolio management system: 我們的投資組合管理系統的功能：
Full data integration with other State Street Global Advisors applications and risk/ oversight teams 與其他 State Street Global Advisors 應用程式及風險/監督團隊的完整資料整合
Designed and customized to our process, workflow and portfolio universe 針對我們的流程、工作流程和產品組合而設計和客製化
Provides a comprehensive portfolio view for portfolio management, as well as risk and oversight 為投資組合管理以及風險和監督提供全面的投資組合檢視
Dedicated software development resources to ensure continuous development and improvements 專屬軟體開發資源可確保持續開發與改進
Why Choosing The Right Index Manager Matters? 為什麼選擇正確的指數經理很重要？
Indexes make numerous assumptions, which can lead to tracking error (+l-), and wealth erosion if not managed with precision and skill 指數有許多假設，如果沒有精確和技巧的管理，可能導致追蹤誤差 (+l-) 和財富損失。
Index Assumptions 指數假設
Reality 現實
No transaction costs 無交易成本
Effective implementation techniques can minimize implicit and explicit costs (i.e., internal crossing) 有效的實施技術可以將隱性和顯性成本降至最低（即內部交叉成本）
All trades executed at market on close 所有交易於收市時在市場執行
Trading strategies can reduce turnover and improve execution 交易策略可降低交易額並改善執行
Dividends reinvested at ex date - before cash received 於除息日再投資的股息 - 未收到現金前
Equitize cash with futures when possible to minimize cash drag 在可能的情況下，將現金與期貨等值，以盡量減少現金阻力
Maximum foreign dividend withholding tax rate 最高國外股利預扣稅率
Investors realize different withholding tax rates relative to the index, resulting in income via tax reclaims 投資者相對於指數實現不同的預扣稅稅率，從而透過稅款回收獲得收入
Assumed corporate action elections 假定的公司行動選舉
Multiple options may exist presenting opportunities to add value 可能存在多種選項，提供增加價值的機會
Dividends are the only income source 股利是唯一的收入來源
Income from securities litigation payments or securities lending can help offset negative tracking* 來自證券訴訟付款或證券借貸的收入可協助抵銷負追蹤*
Indexes make numerous assumptions, which can lead to tracking error (+l-), and wealth erosion if not managed with precision and skill Index Assumptions Reality
No transaction costs Effective implementation techniques can minimize implicit and explicit costs (i.e., internal crossing)
All trades executed at market on close Trading strategies can reduce turnover and improve execution
Dividends reinvested at ex date - before cash received Equitize cash with futures when possible to minimize cash drag
Maximum foreign dividend withholding tax rate Investors realize different withholding tax rates relative to the index, resulting in income via tax reclaims
Assumed corporate action elections Multiple options may exist presenting opportunities to add value
Dividends are the only income source Income from securities litigation payments or securities lending can help offset negative tracking*| Indexes make numerous assumptions, which can lead to tracking error (+l-), and wealth erosion if not managed with precision and skill | Index Assumptions | Reality |
| :---: | :---: | :---: |
| | No transaction costs | Effective implementation techniques can minimize implicit and explicit costs (i.e., internal crossing) |
| | All trades executed at market on close | Trading strategies can reduce turnover and improve execution |
| | Dividends reinvested at ex date - before cash received | Equitize cash with futures when possible to minimize cash drag |
| | Maximum foreign dividend withholding tax rate | Investors realize different withholding tax rates relative to the index, resulting in income via tax reclaims |
| | Assumed corporate action elections | Multiple options may exist presenting opportunities to add value |
| | Dividends are the only income source | Income from securities litigation payments or securities lending can help offset negative tracking* |
Management of Index Rebalances 指數再平衡管理
Approach: 方法：
Utilize a systematic, global framework that integrates insights from Research, Portfolio Management and Trading 利用系統化的全球架構，整合研究、投資組合管理和交易的洞察力
Goal: 目標：
Focus on capital preservation and align with fund or client specific risk expectations 專注於資本保全，並符合基金或客戶特定的風險預期
Other sources of tracking deviation may include but are not limited to transactions costs, other taxes, cash drag, futures tracking versus the benchmark or securities mis-weights. 追蹤偏差的其他來源可能包括但不限於交易成本、其他稅項、現金拖累、期貨追蹤與基準或證券錯重。
"Working Paper, 10 February 2016.
