Smart Australian Resources ETF — Fund Information / Factsheet 2017

Oct 30, 2017

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Australian Resources Fund

Fund update for the quarter ended 30 September 2017

This fund update was first made publicly available on 19 October 2017.

What is the purpose of this update?

This document tells you how the Australian Resources Fund has performed and what fees were charged. The document will help you to compare the fund with other funds. Smartshares Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.

Description of this fund

The Australian Resources Fund invests in financial products listed on the Australian Securities Exchange and is designed to track the return on the S&P/ASX 200 Resources Index.

Total value of the fund: $25,721,320 The date the fund started: 7 April 2015

What are the risks of investing?

Risk indicator for the Australian Resources Fund[1]

Lower risk Higher risk	Lower risk Higher risk	Lower risk Higher risk	Lower risk Higher risk	Lower risk Higher risk	Lower risk Higher risk	Lower risk Higher risk	Lower risk Higher risk	Lower risk Higher risk	Lower risk Higher risk
		1	2	3	4	5	6	7
Potentially lower returns Potentially higher returns

The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the fund’s assets goes up and down. A higher risk generally means higher potential returns over time, but more ups and downs along the way.

To help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at www.sorted.org.nz/tools/investor-kickstarter.

Note that even the lowest category does not mean a risk-free investment, and there are other risks that are not captured by this rating.

This risk indicator is not a guarantee of a fund’s future performance. The risk indicator is based on the returns data for 5 years to 30 September 2017. While risk indicators are usually relatively stable, they do shift from time to time. The risk indicator will continue to be updated in future fund updates.

See the Product Disclosure Statement for the Smartshares Exchange Traded Funds for more information about the risks associated with investing in this fund.

How has the fund performed?

Past year Annual return 20.39% (after deductions for charges and tax) Annual return 21.25% (after deductions for charges but before tax) Market index annual return 22.15% (reflects no deduction for charges and tax)

The market index annual return is based on the annual return of the S&P/ASX 200 Resources Index (NZD). Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.

Annual return graph

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44%
38.3%
40% 36.1%
36%
32%
28%
24%
20%
16%
12% 7.0% 8.0%
8%
4%
0%
31/03/2017 Average
annual
return
Australian Resources Fund Market index
Annual return
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Smartshares Exchange Traded Funds 1

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This shows the return after fund charges and tax for each year ending 31 March since the fund started. The last bar shows the average annual return since the fund started, up to 30 September 2017.

Important: This does not tell you how the fund will perform in the future.

Returns in this update are after tax at 28%.

What fees are investors charged?

Investors in the Australian Resources Fund are charged fund charges. In the year to 31 March 2017 these were:

	% per annum of fund’s net asset value
Total fund charges 0.54%
Which are made up of:
Total management and administration charges 0.54%
Including:
Manager’s basic fee 0.54%
Other management and administration charges 0.00%
Total performance-based fees 0.00%
Other charges Dollar amount per investor
Not applicable $0.00

Investors may also be charged individual action fees for specific actions or decisions (for example, for initial contributions to the fund). See the Product Disclosure Statement for the Smartshares Exchange Traded Funds for more information about those fees.

Small differences in fees and charges can have a big impact on your investment over the long term.

Example of how this applies to an investor

Tara had $10,000 in the fund and did not make any further contributions. At the end of the year, Tara received a return after fund charges were deducted of $2,039 (that is 20.39% of her initial $10,000).

Tara paid no other charges. This gives Tara a total return after tax of $2,039 for the year.

What does the fund invest in?

Actual investment mix

This shows the types of assets that the fund invests in.

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Cash and cash
equivalents
1.03%
Australasian equities
98.97%
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Target investment mix

This shows the mix of assets that the fund generally intends to invest in.

Asset Category
	Target asset mix
Cash and cash equivalents -
New Zealand fixed interest -
International fixed interest -
Australasian equities 100.00%
International equities -
Listed property -
Unlisted property -
Commodities -
Other -

Smartshares Exchange Traded Funds 2

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Top 10 investments

Name	% of fund’s net asset value	Type	Country	Credit rating (if applicable)
BHP Billiton Ltd 31.71% Australasian equities Australia
Rio Tinto Ltd 10.82% Australasian equities Australia
Woodside Petroleum Ltd 8.08% Australasian equities Australia
South32 Ltd 6.54% Australasian equities Australia
Newcrest Mining Ltd 6.15% Australasian equities Australia
Origin Energy Ltd 5.00% Australasian equities Australia
Fortescue Metals Group Ltd 3.35% Australasian equities Australia
Caltex Australia Ltd 3.21% Australasian equities Australia
Oil Search Ltd 3.14% Australasian equities Papua New Guinea
Santos Ltd 2.71% Australasian equities Australia

The top 10 investments make up 80.71% of the fund’s net asset value.

Currency hedging

The fund does not hedge its foreign currency exposure.

Key personnel

This shows the directors and employees who have the most influence on the investment decisions of the fund:

Key personnel	Key personnel	Key personnel	Key personnel	Key personnel
This shows the directors and employees who have the most influence on the investment decisions of the fund:
Name	Current position	Time in current position	Previous or other positions	Time in previous / other position
Paul James Baldwin Director 9 months Head of NZX Wealth Technologies - NZX 1 year and 2 months
Guy Roulston Elliffe Director 1 year and 10 months Corporate Governance Manager - ACC 2 years and 5 months
Aaron Leslie Jenkins Head of NZX Funds Management - NZX 2 years and 3 months Head of Markets - NZX 1 year and 6 months
Bevan Keith Miller Director 4 years and 1 month Chief Financial Officer - NZX 4 years and 9 months
Alister John Williams Director 1 year and 10 months Investment Manager - Trust Management 2 years and 8 months

Further information

You can also obtain this information, the Product Disclosure Statement for the Smartshares Exchange Traded Funds, and some additional information from the offer register at www.business.govt.nz/disclose.

Notes

• 1 Market index returns (as well as actual returns) have been used to complete the risk indicator, as the fund has not been in existence for 5 years. As a result, the risk indicator may provide a less reliable indicator of the potential future volatility of the fund. The risk indicator for the fund uses 2 years and 7 months of market index returns.

Smartshares Exchange Traded Funds 3