Product Review BetaShares Gold Bullion ETF (A$ Hedged)

Transcription

1 Product Review BetaShares Gold Bullion ETF (A$ Hedged) P 1-7 ANALYST: JAMES KIRK APPROVED BY: SAM MORRIS ISSUE DATE Key Information INVESTMENT EXCHANGE TRADED FUND (ETF) LISTED ON THE TYPE AUSTRALIAN SECURITIES EXCHANGE ASX CODE PDS OBJECTIVE QAU TO TRACK THE PERFORMANCE OF THE PRICE OF GOLD BULLION, WITH A CURRENCY HEDGE AGAINST MOVEMENTS IN AUD/USD EXCHANGE RATE, BEFORE FEES AND EXPENSES FUND INCEPTION FUND SIZE $58.6M (JUNE 2018) INDEX PROVIDER UNDERLYING INDEX FUND MANAGER RESPONSIBLE ENTITY OWNERSHIP DISTRIBUTION FREQUENCY DERIVATIVE USE SECURITIES LENDING Fees MANAGEMENT COSTS EXPENSE RECOVERY FEES LONDON BULLION MARKET ASSOCIATION (LBMA) THE SPOT PRICE OF GOLD BULLION, WITH A CURRENCY HEDGE AGAINST MOVEMENTS IN AUD/USD EXCHANGE RATE. (BLOOMBERG TICKER: GOLDLNAM INDEX) BETASHARES CAPITAL LTD BETASHARES CAPITAL LTD HORIZONS ETFS 51%, BETASHARES MANAGEMENT TEAM 46.5%, PRIVATE INVESTORS 2.5% AS A CAPITAL GROWTH ORIENTED INVESTMENT, THE FUND DOES NOT INTEND TO MAKE REGULAR DISTRIBUTIONS TO UNITHOLDERS. CURRENCY DERIVATIVES THE FUND DOES NOT USE SECURITIES LENDING 0.49% P.A. (CAPPED, BASED ON NET ASSET VALUE OF FUND, PAID MONTHLY.) 0.10% P.A. Top 10 holdings (at ) GOLD BULLION 100% What this Rating means The Investment Grade Index rating indicates that Lonsec has conviction the financial product can generate risk adjusted returns in line with relevant objectives. However, if applicable, Lonsec believes the financial product has fewer competitive advantages than its peers. Strengths The Fund represents a relatively efficient, cost effective and transparent way to gain exposure to gold. The Fund applies a currency hedging overlay which provides investors a more pure exposure to the performance of gold, lowering the impact of the AUD/USD exchange rate performance component. BetaShares can draw on the global resources and experience of its strategic shareholders, which can help enhance the overall sustainability of the business. Weaknesses Lonsec notes that the rights and economic exposure of the Fund to gold are pursuant to a Gold Contract and not through the physical holding of gold (the physical gold is held in a ring-fenced account by the Gold Custodian on behalf of the Gold Vendor). The Fund s MER and average spread are less competitive compared to commodity peers. U.S. dollar priced gold and the AUD/USD exchange rate have historically been positively correlated, which has the potential to impact the returns for Australian investors. Fund Risk Characteristics BUSINESS SUSTAINABILITY RISK CAPITAL VOLATILITY FOREIGN CURRENCY RISK SECURITY CONCENTRATION RISK SECURITY LIQUIDITY RISK LOW MODERATE HIGH Risk categories are based on Lonsec s qualitative opinion of the risks inherent in the financial product s asset class and the risks relative to other financial products in the relevant Lonsec sector universe. BIOmetrics Aggregated risks STD RISK MEASURE A Standard Risk Measure score of 7 equates to a Risk Label of Very High and an estimated number of negative annual returns over any 20 year period of 6 or greater. This is a measure of expected frequency (not magnitude) of capital losses, calculated in accordance with ASFA/FSC guidelines. We strongly recommend that potential investors read the product disclosure statement or investment statement. Lonsec Research Pty Ltd ABN AFSL. No This information must be read in conjunction with the warning, disclaimer and disclosure at the end of this document. This report supersedes all prior reports.

2 P 2-7 ANALYST: JAMES KIRK APPROVED BY: SAM MORRIS ISSUE DATE Features and benefits COMPLEXITY Fee profile FEES VS. UNIVERSE FEES VS. ASSET CLASS FEES VS. SUB-SECTOR LOW MODERATE HIGH LOW MODERATE HIGH Fee BIOmetrics are a function of expected total fee as a percentage of expected total return. What is this Fund? The Fund implements a passive approach to tracking the performance of the price of gold bullion, with a currency hedge into Australian dollars, plus an interest component, before fees and expenses. Exchange Traded Funds (ETFs) are investment vehicles traded on a stock exchange like ordinary shares. ETFs are generally structured to provide investors with returns that track a particular index or asset class. The investment strategy is backed by physical gold bullion, held in an allocated and segregated account managed by a Gold Vendor (National Bank of Canada) located in the vault of a Gold Custodian (JPMorgan Chase Bank N.A). As per the Manager s release of the Management costs for the Fund for the financial year ending 30 June the fee disclosure for the Fund was as follows: a management fee of 0.49% p.a. and recoverable expenses of 0.10% p.a.). Lonsec notes that in accordance with the Manager s interpretation of RG97, the recoverable expenses have been disclosed for illustrative purposes only and the PDS acknowledges that the actual recoverable expenses may be above or below this level. For the current PDS, the recoverable expenses have been determined based on the actual fee charged for the financial year ended 30 June During the financial year ended 30 June 2017, the net transaction costs for the Fund were estimated at 0.36% p.a. of the NAV of the Fund. Net transaction costs are costs incurred in managing the Fund (including explicit and implicit costs of buying and selling assets, transactional custodian fees and/or the cost of hedging) that are not covered by the management costs. Please refer to the Fund s PDS for further details. Using this Fund This is General Advice only and should be read in conjunction with the Disclaimer, Disclosure and Warning on the final page. The BetaShares Gold Bullion ETF (A$ Hedged) ( QAU or the Fund ) provides investors with an exposure to the price performance of physical gold, hedged against movements in the AUD/USD exchange rate. Investors should be aware that the Fund provides a passive exposure to a single asset, namely gold bullion. The price of gold is subject to many economic and subjective factors including supply and demand for commercial and investment purposes, investor risk aversion as well as currency fears and debasement (particularly the U.S. dollar). Investors should note that ETFs may not perfectly replicate the performance of the relevant index/asset class, but rather aim to minimise any deviation from the underlying index, before fees and expenses as much as possible. The gold price has historically demonstrated high levels of short-term volatility. Investors should therefore adopt a long term investment horizon and understand that an investment in the Fund can result in periods of negative returns or capital loss. Suggested Lonsec risk profile suitability SECURE DEFENSIVE CONSERVATIVE BALANCED GROWTH HIGH GROWTH For guidance on appropriate asset allocations and risk profiles, refer to the latest Lonsec Strategic Asset Allocation Review and Risk Profile Definitions on our website. Changes Since Previous Lonsec Review There have been no material changes to the team or process since Lonsec s previous review. Lonsec Opinion of this Fund Established in 2009, BetaShares is a specialist provider of ETFs with approximately $5.7 billion in funds under management (FUM) across 46 exchange traded products as at June As a majority-owned subsidiary of Mirae, a large global asset management entity that operates a global ETF business, the Manager benefits from access to distribution, research and infrastructure of its parent. Lonsec considers technology and systems infrastructure to be an important factor in establishing a scalable index business. Relative to larger index managers, Lonsec notes that the technology and systems infrastructure at BetaShares is less well-developed. Lonsec believes the Fund s currency overlay has intuitive appeal in this asset class. As gold is quoted and traded in U.S. dollars, the returns from an Australian perspective are based not only on the performance of gold but also on the AUD/USD exchange rate performance. Lonsec notes that U.S. dollar priced gold and the AUD/USD exchange rate have historically been positively correlated, which has the potential to impact the returns for Australian investors. Lonsec considers the Fund s investment process to be relatively simple. However, Lonsec notes that the rights and economic exposure of the Fund to gold are pursuant to a Gold Contract and not through the physical holding of gold (the physical gold is held in a ring-fenced account by the Gold Custodian on behalf of the Gold Vendor). Lonsec believes a disadvantage of this type of structure is the potential for costs and delays to be incurred by investors, should the Fund be required to exercise its rights under the Gold Contract to enforce the obligations of the Gold Vendor. That said, Lonsec believes BetaShares has engaged an experienced and reputable Gold Vendor in the National Bank of Canada, and is of the opinion that its interests are

3 P 3-7 ANALYST: JAMES KIRK APPROVED BY: SAM MORRIS ISSUE DATE appropriately protected by the registered charge over the underlying gold assets. The Fund is currently supported by multiple market makers and authorised participants. Lonsec believes this arrangement benefits investors, as it promotes competition and tighter spreads within the primary and secondary markets. Further, Lonsec considers these market participants to be both reputable and experienced in ETF markets. The Fund has been maintained at Investment Grade Index. The rating considers factors such as the fees and historical track record of the Fund. The rating takes into account the cost of the Fund versus peers, including other gold ETFs and commodity ETFs more broadly. People and Resources Corporate overview BetaShares Holdings was established in 2009 as a specialist provider of exchange traded products. It is 51% owned by Horizons, 46.5% owned by BetaShares s management team and the remainder owned by private investors. Horizons is a fully controlled subsidiary of the Mirae Asset Global Investments Group. Mirae is a Korean based asset management entity with over US$120bn of FUM. Mirae is particularly active in emerging market equities and is currently expanding its ETF platform globally. The Horizons family of ETFs has over US$21.3 billion in assets in ETFs listed across six countries. BetaShares has over $5.7bn of FUM across 46 ETF products as at June Size and experience NAME LOUIS CROUS POSITION SENIOR PORTFOLIO MANAGER EXPERIENCE INDUSTRY / FIRM 18 / 8 THONG NGUYEN PORTFOLIO MANAGER 16 / 7 DON HOANG CHAMATH DE SILVA ASSISTANT PORTFOLIO MANAGER ASSISTANT PORTFOLIO MANAGER 9 / 3 8 / 2 The BetaShares business currently employs 46 dedicated financial services professionals. More broadly, BetaShares benefits from access to the broader distribution, research, infrastructure and risk management systems and resources of its strategic partners, Horizons and Mirae. Investment Process Overview The investment objective of the Fund is to track the change in U.S. dollar price performance of the gold bullion. BetaShares implement a passive approach to achieve this objective, therefore not engaging in activities designed to protect against, or profit from, fluctuations in the gold bullion price. The Fund invests its assets by purchasing physical gold bullion from the Gold Vendor on the terms of the Gold Contract. All physical gold bullion purchased under the Gold Contract is held in an allocated and segregated account maintained by the Gold Vendor (National Bank of Canada) with the Gold Custodian (JPMorgan Chase Bank N.A.). Importantly, the assets remain ringfenced and no creditor of the Gold Vendor will have any recourse to the gold assets subject to the Gold Charge. In addition to the management costs of 0.49% p.a. of NAV, the Fund also incurs a Gold Vendor cost equivalent to 0.10% p.a. of NAV. Amounts exceeding this 0.10% is payable by the Responsible Entity. The Gold Vendor forwards part of this cost to the Gold Custodian for its services. Currency hedging As gold is priced in U.S. dollars, the Responsible Entity will seek to reduce the impact of fluctuations in the AUD/USD exchange rate on fund returns, by substantially hedging all of its U.S. dollar currency exposure back to the Australian dollar. In practice, this means the total value hedged will be in line with the U.S. dollar value of the gold bullion. To implement this strategy, the Responsible Entity will enter into foreign exchange forward contracts. The maximum tenor of these contracts will be one month, after which the position will be rolled. The Responsible Entity applies a 5% hurdle to determine whether changes in the Fund s portfolio require rebalancing of the currency hedge, meaning the Fund will generally operate in a range of 95% to 105% hedged in the period between resets. STYLE GOLD VENDOR GOLD CUSTODIAN PASSIVE APPROACH (PURCHASE OF PHYSICAL GOLD BULLION) NATIONAL BANK OF CANADA JPMORGAN CHASE BANK N.A. Replication of the index Physical assets The reference price used for transacting Gold under the Gold contract is the London AM fix. The London fix is the most widely used benchmark for daily gold prices. All gold bullion purchased is stored in the Custodian s vault premises. The Gold will be held in the form of specifically allocated gold bars, which will meet the specifications required for certification as London Good Delivery Bars. A gold holdings list that itemises the gold bullion bars and includes specific serial number, refinery, weight and year of casting is maintained by the vault custodian. An independent bullion audit will be conducted at least annually. Gold contract The rights and economic exposure to the Fund are pursuant to a Gold Contract and not through the physical holding of gold. Under the Gold Contract, gold is not delivered to the Fund at the time of purchase, instead legal title remains with the Gold Vendor and is held by the Gold Custodian on behalf of the Gold Vendor (not the Fund). The Fund can require the gold to be delivered to it on any business day. Pending delivery to the Fund, all gold is subject to a registered charge (the Gold Charge) from the Gold Vendor in favour of the Fund. Key implications of this charge are: If the Gold Vendor failed to deliver the gold or failed to pay proceeds to the Fund when directed, the Fund

4 P 4-7 ANALYST: JAMES KIRK APPROVED BY: SAM MORRIS ISSUE DATE could immediately take possession of the gold in the vault or otherwise deal with the gold as its own. The Gold Vendor is not permitted to deal with the gold, and the Gold Custodian is not permitted to act on any instruction in relation to the gold without the prior consent of BetaShares. Underlying index The Fund is benchmarked to the LBMA London GOLD AM Fixing Price USD (Bloomberg ticker: LBMA). INDEX METRIC INDEX SERIES INDEX PROVIDER DATA LBMA LONDON GOLD AM FIXING PRICE USD LBMA Transparency Information relating to the value of the Fund s assets is available daily via the BetaShares website. Actual gold bar holdings securing the Fund are also disclosed on the BetaShares website. Intraday NAV can be tracked on the BetaShares website and on IRESS with the ticker QAUINAV.ETF Liquidity The Fund offers investors liquidity via the Australian Securities Exchange (ASX), which is supported by two dedicated market makers that are obligated to provide continuous liquidity to the market by maintaining preagreed spreads and volumes on the ASX. BetaShares has appointed two dedicated authorised participants to facilitate the creation and redemption of units in the Fund. Proper management of this process will ensure that the Fund s unit price trades in line with its underlying assets (its NAV) on the ASX. Due to timing discrepancies between when the ETF s NAV and market price are struck, Lonsec is unable to make a fair and accurate assessment on the extent to which the ETF s market price traded above or below the NAV. Lonsec believes that investors are more likely to transact at a fair price when ETF premiums and discounts (the difference between the market price and NAV) are small and less volatile. Underlying holdings BetaShares currently invests 100% of the Fund s gross assets into physical gold bullion from the National Bank of Canada (NBC). All gold is held in an allocated and segregated account maintained by NBC with JPMorgan Chase Bank. Fees and Indirect Costs Fee comparison FUND NAME BETASHARES GOLD BULLION ETF (AU$ HEDGED) MER (% P.A.) BID/ASK SPREAD (%)* ETFS PHYSICAL SINGAPORE GOLD ETF * Source: ASX. Average daily bid/ask spread reported monthly over 12 months to June Bid/ask spread represents an approximate average and may not reflect the actual spread incurred. ETF investors incur both direct and indirect costs/ fees. Direct fees include the management expense ratio (MER) and brokerage incurred when buying and selling units. Indirect costs include bid/ask spreads and the premium/discount to NAV when buying or selling units. The MER is 0.49% p.a. of NAV with a expense recovery of 0.10% for FY2017. Brokerage is not assessed by Lonsec as it is a fee outside of the Responsible Entity s control. The Fund s average bid-ask spread for the 12 months to 30 June 2018 was 0.30%, which was moderately high in comparison to other commodity ETFs reviewed and much higher than its closest peer at 0.12%. The bid-ask spread is a measure of liquidity and a transaction cost similar to a commission. Lonsec notes that investors can limit the effects of wide bid-ask spreads by using limit orders to ensure that their purchases and sales occur at the same price. Lonsec believes that excessively wide or volatile discounts and premiums have the greatest potential to increase indirect costs to investors. Lonsec prefers to see premiums and discounts that are small and placed within a tight band. Investors should be aware that the measurement of last price may be problematic for lightly traded ETFs, and may lead to upwardly biased results. Due to timing discrepancies between when the ETF s NAV and market price are struck, Lonsec is unable to make a fair and accurate assessment on the extent to which the ETF s market price traded above or below the NAV. Performance The Fund s performance is measured against the LBMA London GOLD AM Fixing Price USD. The Fund has underperformed its benchmark, the physical gold spot price, by 0.01% p.a. over the five-year period to 30 June 2018 while materially underperfoming the benchmark by 1.6% p.a. over the most recent year. The predominate driver of performance differentials is the performance of the hedging instruments. Negative carry was earned by the Fund s hedging instruments given the interest differential between the Australian dollar and the U.S. dollar, this has shifted from positive carry to negative carry in recent years. Furthermore, the Tracking Error has been relatively high at around 0.68% p.a. over five-years. That said, over the prior 12 months, Tracking Error has pleasingly come down materially, and was 0.28% p.a. to 30 June Generally, differences between the Fund s return and the physical gold spot rate can be explained by the Fund s MER, hedging costs and the Manager s ability to track the physical gold spot rate.

5 P 5-7 ANALYST: JAMES KIRK APPROVED BY: SAM MORRIS ISSUE DATE month rolling tracking error and excess returns over seven years to Risks An investment in the Fund carries a number of standard investment risks associated with domestic and international investment markets. These include economic, political, legal, tax and regulatory risks. These and other risks are outlined in the relevant PDS and should be read in full and understood by investors. Lonsec considers the major risks to be: Performance risk The value of, and returns (if any) from, an investment in the Fund will depend upon the performance of the relevant underlying investments. There is no guarantee the value of an underlying investment will increase. Tracking Error risk BetaShares seeks to minimise the Fund s tracking error against the underlying asset it aims to match. This is a function of the effectiveness of the Responsible Entity s investment strategy. There is no guarantee that this objective will be met. Fund risk There is a risk that the Fund could terminate, that fees and expenses could change or that the Responsible Entity could be replaced. Taxation The Fund will not provide regular distributions to Unitholders. In some circumstances, the Fund may generate amounts of income, such as income from cash balances or forward foreign exchange contracts and such income would be distributed at least annually. Investors may be eligible to hold Fund units on capital account (depending on the investor s individual tax situation). These comments constitute General Advice only and Lonsec advises investors to consult a taxation specialist before making a decision to invest (or not to invest) based upon these taxation considerations. Investors should refer to the BetaShares PDS for further information. Further information Further information can be obtained by calling BetaShares on or visiting:

6 P 6-7 ANALYST: JAMES KIRK APPROVED BY: SAM MORRIS ISSUE DATE Quantitative Performance Analysis - annualised after-fee % returns (at ) Performance metrics 1 YR 3 YR 5 YR 7 YR TOTAL RETURN (% PA) STANDARD DEVIATION (% PA) EXCESS RETURN (% PA) WORST DRAWDOWN (%) TIME TO RECOVERY (MTHS) NR NR NR NR TRACKING ERROR (% PA) FUND: BETASHARES GOLD BULLION ETF (A$ HEDGED) BENCHMARK USED: LBMA LONDON GOLD AM FIXING PRICE USD TIME TO RECOVERY: NR - NOT RECOVERED, DASH - NO DRAWDOWN DURING PERIOD Growth of $10,000 over seven years Premium/discount to NAV over seven years Monthly excess returns over seven years Traded Volume and FUM

7 P 7-7 ANALYST: JAMES KIRK APPROVED BY: SAM MORRIS ISSUE DATE Glossary Bid / Ask Spread The amount by which the ask price exceeds the bid price. Average % Spread = (ask-bid / midpoint as measured daily from 10.30am pm). Absolute Deviation from NAV (daily) The average absolute difference between the Fund s market price and its NAV. It is a measure of liquidity and market efficiency. The market price is determined by using the last price of the day on the listed exchange. The valuation time for NAV ETFs is generally the close of trading on each trading day, but may vary depending on ETF product provider. Premium / Discount to NAV (daily) The amount that the Fund s market price is above the reported NAV is called the premium. The amount that the Fund s market price is below the reported NAV is called the discount. The market price is determined by using the last price of the day on the listed exchange. The valuation time for NAV ETFs is generally the close of trading on each trading day, but may vary depending on ETF product provider. Lonsec Implied Cost Indicator An indicative measure of the cost of transacting in the fund, taking into account the Management Fee, additional fees such as expense recoveries and the Bid / Ask Spread. Net Asset Value (NAV) The per share dollar amount of the fund calculated daily by dividing the closing market value of all securities in the fund, less any liabilities, by the number of fund shares outstanding. Performance Top line actual return, after fees. Standard Deviation Volatility of monthly Performance. Time to Recovery The number of months taken to recover the Worst Drawdown. Tracking Error Volatility of monthly Excess Returns against the benchmark (the Standard Deviation of monthly Excess Returns). Tracking Difference (Excess Return) Difference in return between the Fund and the benchmark. Worst Drawdown The worst cumulative loss ( peak to trough ) experienced over the period assessed. About Lonsec Lonsec Research Pty Ltd (Lonsec) is an investment research house with specialist areas of expertise, that was originally established in 1994 and the current entity was registered on 23 June From 1 July 2011, Lonsec became a fully owned subsidiary of Lonsec Fiscal Holdings Pty Ltd, a privately owned entity with a multibrand strategy of providing leading financial services research and investment execution. Lonsec believes that professional financial advisers need informed opinions on the best investment strategies and financial products to provide real value for their clients. To meet this need, Lonsec has in place an experienced research team, which draws on a robust research process to undertake in-depth assessment of managed fund products. Analyst Disclosure and Certification Analyst remuneration is not linked to the research or rating outcome. Where financial products are mentioned, the Analyst(s) may hold the financial product(s) referred to in this document, but Lonsec considers such holdings not to be sufficiently material to compromise the rating or advice. Analyst holdings may change during the life of this document. The Analyst(s) certify that the views expressed in this document accurately reflect their personal, professional opinion about the matters and financial product(s) to which this document refers. LONSEC STRONGLY RECOMMENDS THIS DOCUMENT BE READ IN CONJUNCTION WITH THE RELEVANT PRODUCT DISCLOSURE STATEMENT IMPORTANT NOTICE: This document is published by Lonsec Research Pty Ltd ABN , AFSL No (Lonsec). Please read the following before making any investment decision about any financial product mentioned in this document. Disclosure at the date of publication: Lonsec receives a fee from the fund manager or financial product issuer(s) for researching the financial product(s) set out in this document, using objective criteria. Lonsec may also receive a fee from the fund manager or financial product issuer(s) for subscribing to research content and other Lonsec services. Lonsec s fee is not linked to the rating(s) outcome. Lonsec does not hold the financial product(s) referred to in this document. Lonsec s representatives and/or their associates may hold the financial product(s) referred to in this document, but details of these holdings are not known to the Analyst(s). Disclosure of Investment Consulting services: Lonsec receives fees for providing investment consulting advice to clients, which includes model portfolios, approved product lists and other financial advice and may receive fees from this fund manager or financial product issuer for providing investment consulting services. The investment consulting services are carried out under separate arrangements and processes to the research process adopted for the review of this financial product. For an explanation of the process by which Lonsec manages conflicts of interest please refer to the Conflicts of Interest Policy which is found at: general/lonsecresearchconflictsofinterestpolicy.pdf Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to General Advice (as defined in the Corporations Act 2001(Cth)) and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs ( financial circumstances ) of any particular person. It does not constitute a recommendation to purchase, redeem or sell the relevant financial product(s). Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek financial advice on its appropriateness. If our advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Product Disclosure Statement for each financial product before making any decision about whether to acquire a financial product. Lonsec s research process relies upon the participation of the fund manager or financial product issuer(s). Should the fund manager or financial product issuer(s) no longer be an active participant in Lonsec s research process, Lonsec reserves the right to withdraw the document at any time and discontinue future coverage of the financial product(s). The rating in this publication relates to the financial product outlined in the publication which may have related financial products or be associated with other financial products and platforms. The rating may only be applied to the financial product outlined in this publication at first instance and whether it applies to related or associated financial products and platforms should be investigated by your financial adviser before you make an investment decision in relation to the related or associated financial products and platforms. You should be aware that the mandate, fees, underlying investments, the issuers of the related and associated financial products and platforms may be different from the financial product specified in this publication. You should satisfy yourself that the related and associated financial products and platforms meet your financial circumstances, needs and objectives before making an investment decision. Disclaimer: This document is for the exclusive use of the person to whom it is provided by Lonsec and must not be used or relied upon by any other person. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this document, which is drawn from public information not verified by Lonsec. Financial conclusions, ratings and advice are reasonably held at the time of completion but subject to change without notice. Lonsec assumes no obligation to update this document following publication. Except for any liability which cannot be excluded, Lonsec, its directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this document or any loss or damage suffered by the reader or any other person as a consequence of relying upon it. Copyright 2018 Lonsec Research Pty Ltd (ABN , AFSL No ) (Lonsec). This report is subject to copyright of Lonsec. 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