State Street Investment Management has announced the upcoming launch of two actively managed exchange-traded funds in Australia in an extension of its liquid credit partnership with Blackstone Credit and Insurance.
State Street Blackstone Senior Loan (AUD Hedged) Active ETF (ASX: SBSL) and State Street Blackstone High Income (AUD Hedged) Active ETF (ASX: SBHI) are the first actively managed ETFs launched by either firm in Australia and are scheduled to list on the Australian Securities Exchange on 7 August 2026.
SBSL seeks to provide exposure to primarily sub-investment grade floating rate senior secured bank loans, while SBHI is an income-focused ETF that seeks to provide exposure to a dynamic allocation across liquid credit markets, including high yield corporate bonds, senior loans, and debt tranches of US collateralised loan obligations (CLOs).
SBSL and SBHI are feeder funds investing in the US-domiciled State Street Blackstone Senior Loan ETF (NYSE: SRLN) and State Street Blackstone High Income ETF (CBOE: HYBL), respectively (the Underlying Funds). SRLN is the largest actively managed bank loan ETF1 and both funds are Sub-Advised by Blackstone, the world’s largest third-party private credit manager2. As the investment manager of the Australian-listed ETFs, State Street Investment Management will oversee governance and distribution to intermediary and institutional investors.
Launched in 2013 and 2022, SRLN and HYBL have assets under management of US$5.2 billion (AU$7.55 billion) 3 and US$569 million (AU$826 million) 3, respectively.
“We’re excited to introduce these two well-established US ETFs to Australian investors in the form of feeder funds. This launch represents an important milestone for State Street Investment Management in Australia,” said Meaghan Victor, Head of Intermediary Client Coverage, Asia Pacific at State Street Investment Management. “We pioneered the ETF industry here 25 years ago, democratising investing and giving all investors access to institutional-grade solutions. Today, we’re proud to build on that innovation by launching our first actively managed ETFs listed locally in Australia at a time when demand for active fixed income strategies is accelerating. We believe active ETFs are still in the early stages of their evolution and will play an increasingly important role in portfolio construction.”
Also read: Australian ETF Market Races Towards Milestone After Record Half-Year
“SBSL is the first ETF in Australia primarily allocating to US senior loans, offering investors access to the AU$2.87 trillion segment of the US corporate credit market4,” said Flora Herries, Head of APAC Product at State Street Investment Management. “With bank hybrids being gradually phased out, many investors are seeking alternative high yield solutions. These ETFs offer attractive income opportunities by accessing the higher yielding segments of the corporate bond market.”
Developed in collaboration with Blackstone, SBSL and SBHI offer investors access to Blackstone’s credit expertise, proprietary research, and scale, delivered through a transparent and liquid ETF structure.
Dan Leiter, Global Head of Liquid Credit Strategies and Head of International for Blackstone Credit & Insurance, adds: “We are pleased to partner with State Street to expand access to liquid credit in Australia, a market with deep significance to our investment history and longstanding relationships, and to introduce new products that channel our expertise across our US$125 billion (AU$185 billion) global liquid credit platform5. This partnership underscores our commitment to broadening our credit capabilities for a diverse investor base across the Asia Pacific region, where we continue to expand our platform and teams.”
Dan McMullen, Global Head of Loan Strategies for Blackstone Credit & Insurance, said: “The US credit markets offer a diversified set of investing opportunities and we have a unique foothold as the largest global loan manager6. This initiative builds on our 25-year credit track record of performance and delivering for investors and expanding their access to leading products.”
State Street Investment Management will have a total of 19 ETFs listed on the ASX following the addition of the two new ETFs.
1Source: Morningstar Direct, as of 30 June 2026
2Source: Blackstone Credit & Insurance analysis of company earnings presentations and calls, as of March 31, 2026, or latest publicly available data.
3Source: State Street Investment Management, as of 30 June 2026.
4Source: McKinsey & Company, The Next Era of Private Credit, September 2024 (USD/AUD conversion rate on 10 July 2026).
5Source: Blackstone Credit and Insurance, as of 31 March 2026.
6Source: Blackstone Credit and Insurance, as of 31 March 2026.
