This entity provides investors with exposure to a diversified portfolio of senior floating rate bonds issued by the four major Australian banks. It aims to track the performance of an index that represents this specific segment of the Australian fixed-income market. By investing in these bonds, the fund effectively lends money to these large financial institutions, which in turn pay interest based on a variable rate that typically fluctuates with broader interest rate benchmarks. Because these are senior bonds, they have a higher claim on assets in case of a bank's default compared to other types of debt, providing a degree of security. The floating rate nature of the bonds also offers a hedge against rising interest rates, as the interest payments increase as rates rise, potentially preserving the real value of the investment. Instead of directly owning these bonds individually, investors buy units in this vehicle, which operates as a managed fund. This pooling of investments allows for broad diversification across multiple bank bond issuances, reducing exposure to the risk of a single issuer, and making it accessible to investors who might not have the capital or expertise to construct such a portfolio themselves. The vehicle handles the ongoing management, trading and reinvestment of funds, aiming to match the index's performance while also distributing interest payments regularly to the unit holders.