Compliment your Defensive Portfolio

Market turbulence, inflation and elevated bond yields continue to create uncertainty for Australian investors targeting yield, capital preservation and liquidity. Compliment your defensive portfolio with the State Street Floating Rate Fund.

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Why Invest

A floating-rate note (FRN) is a bond where the coupon rate is based on a reference rate plus a spread. FRN’s re-set every 90 days and for this reason they offer investors.

1

Attractive Yield vs. Risk

Historically have delivered income consistency and lower volatility.¹

2

Capital Preservation

During significant market events, FRN's have exhibited lower drawdowns and maintained liquidity.¹

3

Lower Sensitivity to Interest Rate Movements

Low sensitivity to monetary policy rate changes. The coupon adjusts reflecting current conditions which minimises the impact on the capital value compared to fixed rate bonds.

Fund Profile

The State Street Floating Rate Fund

Investment Objective: The State Street Floating Rate Fund ("the Fund") seeks to outperform the RBA Cash Rate Total Return Index (TRI) by 1.0% to 1.5% over a rolling three-year period before fees.

All-In-Yield²(%): 5.26
Discount Margin²(bps): 82.69
Option Adjusted Duration² (years): 0.11

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Benefits

Designed for investors seeking income from exposure to the Australian High quality debt market.

1

Yield Enhancement

Potential to deliver a yield above the RBA Cash Rate TRI.

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2

Income Generation

Income is distributed regularly on a monthly basis.³

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3

Capital Preservation and Liquidity

An actively managed approach that aims to preserve capital and maintain liquidity across different market environments.

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4

Low Fees

Buy/sell spread is 0%/0.03% and management fees are 0.25% p.a.

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5

Hedge to Rate Movements

A hedge against changes in interest rates, insulating the impact on capital.

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6

ESG Aware

Seeks to exclude exposure to companies that are classified as ESG “Laggards” or “Under Performers” on our ‘Responsibility Factor’ (R-Factor^TM).

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Footnotes

Disclosure

References to the State Street Floating Rate Fund ("the Fund") in this communication are references to the managed investment scheme domiciled in Australia, promoted by SSGA Australia, in respect of which SSGA ASL is the Responsible Entity.

Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inﬂation risk. These eﬀects are usually pronounced for longer-term securities. Any ﬁxed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss. This information should not be used or construed as an oﬀer to sell, a solicitation of an oﬀer to buy, or a recommendation for any security.

Floating rate securities are often lower-quality debt securities and may involve greater risk of price changes and greater risk of default on interest and principal payments. The market for ﬂoating rate securities is largely unregulated and these assets usually do not trade on an organized exchange. As a result, ﬂoating rate bank loans can be relatively illiquid and hard to value. Investing involves risk including the risk of loss of principal. Diversiﬁcation does not ensure a proﬁt or guarantee against loss.

The returns on a portfolio of securities which exclude companies that do not meet the portfolio's speciﬁed ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.

Responsible-Factor (R-Factor TM) scoring is designed by State Street to reﬂect certain ESG characteristics and does not represent investment performance. Results generated out of the scoring model is based on sustainability and corporate governance dimensions of a scored entity.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA Australia’s express written consent.