Why Invest in Floating Rate Notes


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 Characteristics: 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.

On-Demand Webinar


Rolling with the Punches as Central Banks Fight On.

Less than a year ago the commonly held view was that inflation was transitory. Now, investors are feeling dazed and markets are coming to grips with inflation and expected rate increases in the months ahead. In this webinar we examine the current state of debt markets, the implications for investors and provide defensive portfolio construction ideas for a bond portfolio.


Getting the Right Balance in Your Portfolio


The State Street Floating Rate Fund (the Fund) is a portfolio of high quality, Australian, interest-bearing investments which is actively managed to preserve capital while aiming to deliver monthly income above cash6. The portfolio average credit quality is A+/A.

The Fund offers the following characteristics:


Yield Enhancement


Capital Preservation and Liquidity


Income Generation


Hedge to Rising Rates


Low Fees


ESG Scoring



How to Access


The Fund is available directly or through a number of platforms. 3


Platform

  • AMP North 
  • BT (inc Asgard)
  • Hub 24
  • Macquarie Wrap
  • Netwealth
  • Wealth02
  • Praemium

Ratings

  • Zenith* Recommended (May 2022)
  • Lonsec** Recommended (September 2022)
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Enhancing the Investment Process with an ESG Aware Lens


Investors have clearly defined expectations for cash and liquidity strategies centred on capital preservation, liquidity, and yield.  To enhance this, we employ an ESG aware lens in the Fund, because it provides a complementary signal about credit quality.

Our ESG scoring system is called R-Factor™, and it has been incorporated into the Fund’s investment process in two ways.




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