State Street launches fixed income ETFs
State Street Global Advisers has launched two new fixed income exchange-traded funds (ETFs) that give retail investors easier access to Australian government, semi-government and corporate bonds, State Street head of SPDR ETFs in Australia, Amanda Skelly said.
The SPDR S&P/ASX Australian Bond Fund and SPDR S&P/ASX Australian Government Bond Fund are the first ETFs to track indices from the S&P/ASX Australian Fixed Income Index Series, State Street stated.
The S&P/ASX Australian Government Bond Index is 53.1 per cent government bonds and 46.9 per cent semi-government bonds, while the S&P/ASX Fixed Interest Index is 36.3 per cent government bonds, 32 per cent semi-government bonds, 21.5 per cent supranational/sovereign bonds and 10.2 per cent corporate bonds.
Skelly said the funds offer investors diversification in "a low-cost, easily tradeable and transparent manner".
"The advent of fixed income ETFs this year marks a milestone for retail investors - especially those seeking to add more stability to their self-managed super fund - as they offer simple, safe and transparent access to high quality fixed income assets which generate a regular and largely predictable income stream," she said.
State Street's Asia-Pacific head of fixed income Kheng-Siang Ng said the AAA rating of Australian government bonds and their popularity with foreign investors should assure good future yields.
State Street beefed up its ETF business earlier this month with Skelly's appointment and also appointed Shaun Parkin to lead wholesale ETF sales.
Recommended for you
Insignia Financial has reported net inflows of $448 million into its asset management division in the latest quarter, as well as popularity from advisers for its MLC managed accounts.
With ASIC questioning the dominance of research houses when it comes to retail usage of private market funds, a research house has shared how its ranking process sits alongside ASIC’s priorities.
Two Australian active fund managers have been singled out by Morningstar for their ability to achieve consistent performance and share price growth in the past 12 months.
Pinnacle Investment Management has expanded its private market coverage, forging a strategic partnership with a private markets manager via a 13 per cent stake acquisition.
