What a let down. Once again OZF declares a barely franked...

What a let down. Once again OZF declares a barely franked dividend (%37).

Touted a suitable investment for SMSFs, this EFT certainly leaves a lot to be desired.

Where have the franking credits gone, given that the top 5 shares comprising the XXJ index are all fully franked and comprise over %80 of the index capitalisation?

Could it be that the managers play with derivatives to the extent that no franking credits are available, or is there some other explanation?

(See the throw away line in their PDS "Where derivatives are used to create an economic exposure for a Fund to securities in the Fund’s Index, no franking credits will be available in relation to the amount that would have been received as a distribution on those securities, and the level of income may differ")

Trustees of SMSFs in the pension mode depend on franking credits, and State Street should be more upfront about explaining their poor level of OZF franking.