Smart S&P/NZX 50 ETF — Fund Information / Factsheet 2021

Jun 13, 2021

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Smartshares S&P/NZX 50 ETF

Fund update for the quarter ended 31 March 2021

This fund update was first made publicly available on 3 May 2021.

What is the purpose of this update?

This document tells you how the Smartshares S&P/NZX 50 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) on the S&P/NZX 50 Index.

Total value of the fund: $161,059,533 The date the fund started: 15 July 2020

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 31 March 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 – Core Series for more information about the risks associated with investing in this fund.

How has the fund performed?

	Past year
Annual return (after deductions for charges and tax)	Not applicable
Annual return (after deductions for charges but before tax)	Not applicable
Market index annual return (reflects no deduction for charges and tax)	28.21%

What are the risks of investing?

Risk indicator for the Smartshares S&P/NZX 50 ETF[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 market index annual return is based on the annual return of the S&P/NZX 50 Index. Additional information about the market index is available in the 'Other Material Information' document on the offer register at disclose-register.companiesoffice.govt.nz.

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.

Smartshares Exchange Traded Funds 1

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What fees are investors charged?

Investors in the Smartshares S&P/NZX 50 ETF are charged fund charges. These are as follows:

	% per annum of fund’s net asset value
Total fund charges 0.20%
Which are made up of:
Total management and administration charges 0.20%
Including:
Manager’s basic fee 0.19%
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 – Core Series for more information about those fees.

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

The fees set out above include GST where applicable.

Example of how this applies to an investor

Tara had $10,000 in the fund on 15 July 2020 and did not make any further contributions. On 31 March 2021, Tara received a return after fund charges were deducted of $387 (that is 3.87% of her initial $10,000). This gives Tara a total return after tax of $387 for the 8 months and 17 days.

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,
1.8%
Australasian
equities,
98.2%
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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)
Fisher & Paykel Healthcare Corp Ltd 14.22% Australasian equities New Zealand
Auckland International Airport Ltd 7.28% Australasian equities New Zealand
Spark New Zealand Ltd 6.38% Australasian equities New Zealand
Meridian Energy Ltd 5.20% Australasian equities New Zealand
a2 Milk Co Ltd 4.92% Australasian equities New Zealand
Ryman Healthcare Ltd 4.88% Australasian equities New Zealand
Mainfreight Ltd 4.51% Australasian equities New Zealand
Fletcher Building Ltd 4.49% Australasian equities New Zealand
Contact Energy Ltd 4.12% Australasian equities New Zealand
Infratil Ltd 3.96% Australasian equities New Zealand

The top 10 investments make up 59.96% of the fund’s net asset value.

Currency hedging

The fund's foreign currency exposure is not hedged.

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 4 months Corporate Governance Manager - ACC (current position) 5 years and 11 months
Stuart Kenneth Reginald Millar Chief Investment Officer - Smartshares 1 year and 10 months Head of Portfolio Management - ANZ Investments 6 years and 4 months
Hugh Duncan Stevens Chief Executive Officer - Smartshares 3 years and 1 month Chief Operating Officer - Implemented Investment Solutions Ltd 2 years and 6 months
Alister John Williams Director 5 years and 4 months Investment Manager - Trust Management 6 years and 2 months

Further information

You can also obtain this information, the Product Disclosure Statement for the Smartshares Exchange Traded Funds – Core 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 4 years and 4 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