What Blend of High Yield Bonds and Senior Loans Sits Behind State Street Blackstone High Income (AUD Hedged) Active ETF (ASX:SBHI)?

Sonal Goyal

28 October 2026 12:53 AM AEDT

What Blend of High Yield Bonds and Senior Loans Sits Behind State Street Blackstone High Income (AUD Hedged) Active ETF (ASX:SBHI)?

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Key Highlights

State Street Blackstone High Income (AUD Hedged) Active ETF (ASX:SBHI) seeks to outperform a composite benchmark of 50% high yield bonds and 50% high yield senior loans.
The fund invests through the US-domiciled State Street Blackstone High Income ETF (HYBL), held at 99.05% of the portfolio.
The management fee is 0.70% and the fund was admitted to the ASX on 7 August 2026.

State Street Blackstone High Income (AUD Hedged) Active ETF (ASX:SBHI) is an actively managed exchange traded fund that seeks to outperform a composite benchmark comprising 50% high yield bonds and 50% high yield senior loans. Admitted to the ASX on 7 August 2026 and categorised as Non Investment Grade Debt, the fund carries a management fee of 0.70%. This article outlines its structure, portfolio and distributions.

Exposure and Investment Approach

The fund also aims to deliver less volatility than the general bond and loan markets over full market cycles. To achieve its objective it obtains exposure to debt instruments and loans through shares in the US-domiciled State Street Blackstone High Income ETF (the Underlying Fund), which makes up 99.05% of the portfolio. The ASX lists its benchmark as the Morningstar LSTA US LL TR Hdg AUD index.

Portfolio Composition

The portfolio is held through a single investment, State Street Blackstone High Income ETF (HYBL), which represents 99.05% of the fund.

In terms of asset allocation, bonds make up 96.18% of the portfolio, cash 3.79% and stocks 0.03%. Geographic exposure is United States (80.04%), the Cayman Islands (9.82%), Canada (2.74%), the United Kingdom (2.49%), Japan (1.43%) and Australia (1.33%).

Key Features to Understand

The Non Investment Grade Debt category description says funds in this group invest in Australian and/or global credit securities, typically focus on active credit selection and have an average credit quality below investment grade, including allocations to emerging-market debt, junk bonds, structured credit and unrated issues. The fund is AUD hedged, and bonds make up 96.18% of its portfolio.

Distribution Details

The fund's most recent recorded distribution was an interim distribution of $0.284 per unit, with an ex-date of 8 October 2026, a record date of 9 October 2026 and payment on 23 October 2026.

Fund Details at a Glance

Fund name: State Street Blackstone High Income (AUD Hedged) Active ETF (ASX:SBHI)
Issuer: State Street
Category: Non Investment Grade Debt
Benchmark: Morningstar LSTA US LL TR Hdg AUD
Admitted to the ASX: 7 August 2026
Management fee: 0.70%
ISIN: AU0000477721

Recent Announcements

Recent announcements include a distribution dates announcement on 1 October 2026, an estimated distribution announcement on 7 October, a final distribution announcement on 8 October and distribution reinvestment prices on 14 October 2026.

Closing Perspective

State Street Blackstone High Income (AUD Hedged) Active ETF combines high yield bonds and senior loans in one AUD hedged fund held through a single underlying US fund. Its most recent distribution was an interim distribution of $0.284 per unit, paid on 23 October 2026.

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