Smart Global Bond ETF — Fund Information / Factsheet 2021

Nov 8, 2021

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Smartshares Exchange Traded Funds Smartshares Global Bond ETF

Fund update for the quarter ended 30 September 2021

This fund update was first made publicly available on 27 October 2021.

What is the purpose of this update?

This document tells you how Smartshares Global Bond ETF 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

Invests in international bonds, with the objective of outperforming the Bloomberg Barclays Global Aggregate Bond Index by 1% per annum over rolling 3-year periods, hedged to the New Zealand dollar. The investment manager is PIMCO Australia Pty Ltd.

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

Note that even the lowest category does not mean a riskfree 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 2021. 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 – Specialist Series for more information about the risks associated with investing in this fund.

Total value of the fund:	$225,237,710
The date the fund started:	12 November 2015

What are the risks of investing?

Risk indicator for Smartshares Global Bond ETF

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.

How has the fund performed?

	Average over past 5 years	Past year
Annual return (after deductions for charges and tax) 2.45% 0.44%
Annual return (after deductions for charges but before tax) 3.41% 0.59%
Market index annual return (reflects no deduction for charges and tax) 2.98% -0.66%

The market index annual return is based on the annual return of the Barclays Global Aggregate Index (100% hedged to the New Zealand dollar). Additional information about the market index is available in the 'Other Material Information' document on the offer register at disclose-register.companiesoffice.govt.nz.

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Annual return graph

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7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
31/03/2017 31/03/2018 31/03/2019 31/03/2020 31/03/2021 Average
annual
return
Smartshares Global Bond ETF Market index
6.2%
4.7%
4.0% 4.0%
Annual return 3.5%
3.3% 3.3%
3.0%
2.7% 2.7%
2.4%
1.2%
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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 2021.

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

Returns in this update are after tax at the highest prescribed investor rate (PIR) of tax for an individual New Zealand resident. Your tax may be lower.

What fees are investors charged?

Investors in Smartshares Global Bond ETF are charged fund charges. In the year to 31 March 2021 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 0.53%
Other management and administration charges 0.01% 1

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 – Specialist Series for more information about those fees.

The fees set out above include GST where applicable.

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 at the start of the year and did not make any further contributions. At the end of the year, Tara received a return after fund charges were deducted of $44 (that is 0.44% of her initial $10,000). This gives Tara a total return after tax of $44 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,
1.4%
International
fixed interest,
98.6%
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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 100.00%
Australasian equities -
International equities -
Listed property -
Unlisted property -
Commodities -
Other -

Top 10 investments

Name		Type	Country	Credit rating (if applicable)
	% of fund’s net
	asset value
United States Treasury 27/01/22 0.00% GB 5.87% International fixed interest United States AA+
United States Treasury 15/02/41 1.875% CB 2.29% International fixed interest United States AA+
Japan Government 20/06/31 0.10% GB 2.10% International fixed interest Japan A+
Federal National Mortgage Association 15/10/43 0.00% TBA 1.61% International fixed interest United States
United States Treasury 15/11/40 1.375% GB 1.54% International fixed interest United States AA+
China Government 22/10/25 3.02% GB 1.52% International fixed interest China A+
QNB Finance Ltd 12/02/22 FRN 1.52% International fixed interest Cayman Islands
China Government 03/12/27 3.28% GB 1.46% International fixed interest China A+
Japan Government 20/09/35 1.20% GB 1.30% International fixed interest Japan A+
United States Treasury 04/01/22 0.00% GB 1.26% International fixed interest United States AA+

The top 10 investments make up 20.47% of the fund’s net asset value.

Currency hedging

The fund's foreign currency exposure is hedged to the New Zealand dollar. The target hedging level is 100% (although the actual hedging level may differ from this because of cash flow and market movements).

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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
Sachin Gupta Portfolio Manager - PIMCO Australia 17 years and 11 months
Andrew Balls Portfolio Manager - PIMCO Australia 14 years and 11 months

Further information

You can also obtain this information, the Product Disclosure Statement for the Smartshares Exchange Traded Funds – Specialist Series, and some additional information, from the offer register at disclose-register.companiesoffice.govt.nz.

Notes

• 1 We charge fixed fund charges that cover normal fund operating costs. For disclosure purposes, supervisor, audit and legal costs are not included in the manager’s basic fee, but are included in the other management and administration charges.

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