Compliment your Defensive Portfolio

Market turbulence, sticky 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.

View Fund Details

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.

Attractive Yield vs. Risk

Historically have delivered income consistency and lower volatility.¹

Capital Preservation

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

A Hedge to Rising Interest Rates

Low sensitivity to monetary policy tightening because as interest rates rise, the coupon adjusts accordingly.

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(%): 5.27
Discount Margin²(bps): 92.45
Option Adjusted Duration² (years): 0.10

View Fund Details

How to Access

APIR CODE SST4725AU

Our Funds are available on a number of platforms. Please check with the platform operator for minimum investment requirements and fees.

To request a copy of the Research House Rating Reports for this fund, please click here.

Platform

Rating Information

AMP North

BT (inc Asgard)

CFS Edge

Dash

Hub 24

Macquarie Wrap

Netwealth

Praemium

Zenith* Recommended (Jun 2023)

Lonsec** Recommended (Sep 2023)

Ready to invest? Apply now.

Benefits

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

Yield Enhancement

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

Learn More

Income Generation

Income is distributed regularly on a monthly basis.³

Learn More

Capital Preservation and Liquidity

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

Learn More

Low Fees

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

Learn More

Hedge to Rising Rates

A hedge to rising interest rates and rising bond yields.

Learn More

ESG Aware

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

Learn More

Latest Insights

The Role of Cash in Your Portfolio

Cash is an integral part of any investor’s portfolio and there are varying reasons to hold cash. With yields at their highest levels in over a decade, cash is once again gaining prominence as an asset class that can help investors navigate the uncertain macro outlook.

Download our Whitepaper

Footnotes

Disclosure

* Zenith: The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (SST4725AU: June 2023) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines

** Lonsec: The ratings issued: 09/2023 SST4725AU, are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2024 Lonsec. All rights reserved.

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.