Floating rate notes versus cash and term deposits

Cash is back and investors now have a bunch of options to help stay ahead of inflation.
James Marlay

Livewire Markets

It seems like yesterday that equities were the only game in town. Remember TINA? The acronym describes the reality that ‘there is (or was) no alternative’ to stocks as yields went to zero and even negative in some regions.

Today, investors have far more choice, and in many cases, people are happily parking a chunk of assets in cash as they await clarity about the best opportunities. As is often the case with investing, investors have a choice as to where to park their hard-earned money.

I spoke with Simon Mullumby , the Head of Australian Cash and Bonds for State Street Global Advisors, to explain the pros and cons of some of the different options available. Mullumby says investors need to consider a few trade-offs around liquidity and returns when looking at cash, term deposits and money market funds.

Click on the player below to watch the short video


Learn more

Simon actively seeks to invest in interest-bearing investments of high credit quality, rather than investing in a predetermined basket of securities such as an index. For further information on the Floating Rate Fund, please visit the fund profile below.

Managed Fund
State Street Floating Rate Fund
Global Fixed Income
........
Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors. State Street Global Advisors, Australia, Limited (AFSL Number 238276, ABN 42 003 914 225) (“SSGA Australia”). Registered office: Level 14, 420 George Street, Sydney, NSW 2000, Australia · Telephone: +612 9240-7600 · Web: ssga.com. Investing involves risk including the risk of loss of principal. This material is general information only and does not take into account your individual objectives, financial situation or needs and you should consider whether it is appropriate for you. There is no representation or warranty as to the current accuracy of, nor liability for, decisions based on such information. The views expressed in this material are the views of Simon Mullumby through the period ended 18 October 2023 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. 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. © 2023 State Street Corporation - All Rights Reserved 6085915.1.1.ANZ.RTL | Exp. Date: 30/11/2024

1 fund mentioned

1 contributor mentioned

James Marlay
Co Founder
Livewire Markets

Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions. Safe investing and thanks for reading Livewire.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment
Elf Footer