Smart NZ Mid Cap ETF — Fund Information / Factsheet 2021

Nov 8, 2021

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Smartshares NZ Mid Cap ETF

Fund update for the quarter ended 30 September 2021

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

information about the risks associated with investing in this fund.

How has the fund performed?

What is the purpose of this update?

This document tells you how the Smartshares NZ Mid Cap 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 New Zealand shares and is designed to track the return (before tax, fees and other expenses) of the S&P/NZX Mid Cap Index.

Total value of the fund: $202,563,745 The date the fund started: 7 November 2016

What are the risks of investing?

Risk indicator for the Smartshares NZ Mid Cap ETF[1]

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

Past year Annual return 19.49% (after deductions for charges and tax) Annual return 20.27% (after deductions for charges but before tax) Market index annual return 20.19% (reflects no deduction for charges and tax)

The market index annual return is based on the annual return of the S&P/NZX Mid Cap Index. Additional information about the market index is available in the 'Other Material Information' document on the offer register at discloseregister.companiesoffice.govt.nz.

Annual return graph

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50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
-10.0%
-20.0%
31/03/2018 31/03/2019 31/03/2020 31/03/2021 Average
annual
return
Smartshares NZ Mid Cap ETF Market index
41.4% 42.4%
Annual return
20.0%
17.9% 17.2% 17.1% 16.3%
14.9%
-12.8% -12.4%
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See the Product Disclosure Statement for the Smartshares Exchange Traded Funds – Specialist Series for more

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 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 the Smartshares NZ Mid Cap 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 0.60%
Which are made up of:
Total management and administration charges 0.60%
Including:
Manager’s basic fee 0.59%
Other management and administration charges 0.01% 2

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 $1,949 (that is 19.49% of her initial $10,000). This gives Tara a total return after tax of $1,949 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,
0.2%
Australasian
equities,
99.8%
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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)
EBOS Group Ltd 8.74% Australasian equities New Zealand
Mercury NZ Ltd 7.58% Australasian equities New Zealand
Summerset Group Holdings Ltd 6.49% Australasian equities New Zealand
Chorus Ltd 5.49% Australasian equities New Zealand
Goodman Property Trust 4.72% Australasian equities New Zealand
SKYCITY Entertainment Group Ltd 4.53% Australasian equities New Zealand
Port of Tauranga Ltd 4.14% Australasian equities New Zealand
Freightways Ltd 3.93% Australasian equities New Zealand
Precinct Properties New Zealand Ltd 3.79% Australasian equities New Zealand
Kiwi Property Group Ltd 3.38% Australasian equities New Zealand

The top 10 investments make up 52.79% of the fund’s net asset value.

Currency hedging

The fund does not have foreign currency exposure.

Key personnel

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

This shows the directors and employees who have the most influence on the investment decisions of the fund:	This shows the directors and employees who have the most influence on the investment decisions of the fund:	This shows the directors and employees who have the most influence on the investment decisions of the fund:	This shows the directors and employees who have the most influence on the investment decisions of the fund:	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
Guy Roulston Elliffe Director 5 years and 10 months Corporate Governance Manager - ACC (current position) 6 years and 5 months
Stuart Kenneth Reginald Millar Chief Investment Officer - Smartshares 2 years and 4 months Head of Portfolio Management - ANZ Investments 6 years and 4 months
Hugh Duncan Stevens Chief Executive Officer - Smartshares 3 years and 7 months Chief Operating Officer - Implemented Investment Solutions Ltd 2 years and 6 months
Alister John Williams Director 5 years and 10 months Investment Manager - Trust Management 5 years and 4 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 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 months of market index returns.

• 2 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.

Smartshares Exchange Traded Funds 3