Product Assessment. BetaShares S&P 500 Yield Maximiser Fund. Report data as at 30 Sep 2018 Rating issued on 29 Oct 2018 VIEWPOINT.

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1 Report data as at 30 Sep 2018 Rating issued on 29 Oct 2018 Product Assessment BetaShares S&P 500 Yield Maximiser Fund Highly Recommended Recommended Approved Not Rated Redeem APIR Code ASX:UMAX Asset / Sub-Asset Class International Shares Exchange Traded Products - ETP Investment Style Index Investment Objective To provide regular income that exceeds the dividend yield of a portfolio of 500 large capitalisation U.S. equities (as represented in the S&P 500 Index), the potential for some capital growth and lower volatility of returns than the S&P 500 Index. Zenith Assigned Benchmark S&P 500 $A CBOE Standard & Poor's 500 2% OTM BuyWrite Index Net Returns (% p.a.) 3 yrs 2 yrs 1 yr Fund Benchmark Median Income (% p.a.) Income Total FY to 30 Jun FY to 30 Jun FY to 30 Jun Fees (% p.a., Incl. GST) Management Cost: 0.79% Performance Fee: N/A VIEWPOINT The Fund is an Exchange Traded Product (ETP) which aims to provide exposure to shares included in the S&P 500 Index, while providing quarterly income that exceeds the yield of the S&P 500 over the medium term, by implementing an options overlay. The Fund is structured as a Managed Fund (MF) product as opposed to the more traditional Exchange Traded Fund (ETF) structure. Zenith believes that given the Fund's systematic process, we would prefer BetaShares provide an explicit benchmark (internally or externally), against which the options strategy can be assessed. We believe that this transparency will improve the accountability of BetaShares and ultimately the Fund. The Fund's issuer is BetaShares Capital Ltd (BetaShares), a specialist provider of ETFs which was established in 2009 and first launched a listed product in BetaShares is a wholly owned subsidiary of BetaShares Holdings Pty Ltd which is a subsidiary of Mirae Asset Global Investment Group (Mirae). As at 31 August 2018, BetaShares had $A 5.8 billion in funds under management across 46 products. Mirae, established in 1997, is a large Asian asset manager based in South Korea that managed in excess of $US 120 billion in assets as at 31 August Mirae offers global support to BetaShares, through its ownership of Horizons ETFs, as well as strategic direction at the board level. Based in Sydney, the BetaShares investment team of four is led by Chief Investment Officer Louis Crous. Crous has over 15 years experience in financial services from prior roles at nabinvest and Rand Merchant Bank. Crous is responsible for the day-to-day operational control of all BetaShares ETFs. Zenith notes that the BetaShares product suite has expanded rapidly in recent years and while it has not presented any adverse issues to date, Zenith believes the investment team is less well resourced compared to peers. Although the Fund's approach is traditionally process based, which limits the threat of key person risk, Zenith believes a degree of key person risk rests with Crous. The Fund seeks to earn income from dividends, franking credits and option premiums while participating in some capital appreciation from holding a passive portfolio of securities included in the S&P 500 Index at their constituent weights. BetaShares expects to achieve an average option premium yield of 3% p.a. to 6% p.a. over the medium-term. NOTE: Zenith ratings applied to ETPs do not take into account price volatility or direction and do not represent a buy/sell recommendation based on an ETP's valuation. Potential investors should make their own determination of the appropriateness of prevailing trading prices when utilising ETPs. FUND FACTS Passive equity exposure to the S&P 500 Index The Fund uses an derivative overlay to generate extra income Lower effective market exposure than long-only peers ABSOLUTE RISK (SECTOR) VERY HIGH HIGH MODERATE LOW VERY LOW INCOME DISTRIBUTIONS PER MONTH QUARTER 6 MONTH ANNUM RELATIVE RISK (FUND WITHIN SECTOR) Geared Active - Benchmark Unaware Active - Benchmark Aware Index - Enhanced/Fundamental Index INVESTMENT TIMEFRAME 1-2 YRS 3-4 YRS 5-6 YRS 7+ YRS Zenith charges a fee to the Product Issuer to produce this report. For further information please refer to the Disclaimer & Disclosure at the end of this report.

2 APPLICATIONS OF INVESTMENT SECTOR CHARACTERISTICS The Zenith International Shares - Exchange Traded Funds sector consists of all ETFs investing in offshore equities markets (global or country funds). The sector incorporates a range of ETF styles including: Market Beta ETFs Alternative Beta ETFs (non-market cap weighted) Active ETFs These products may encompass a range of strategies across the market capitalisation spectrum or adopt sector specific themes. Zenith benchmarks all ETFs against their specific benchmarks as well as against a relevant International Equities Index as an additional yardstick where relevant. International equities offer Australian investors the ability to access a broader opportunity set, with the potential to invest in sectors not represented or not well represented in the Australian market. Given international markets are not perfectly correlated with the Australian market, International equities also affords portfolio diversification benefits. The global share market, as represented by the MSCI World Index ex-australia (Unhedged), is far more diverse, in terms of sector exposures, than the Australian market. Although the Financials sector represents the largest sector index weight, many sectors not well represented in the Australian market, such as Information Technology and Health care, are well represented in the global index, with an approximate weighting of 16% and 12%, respectively. Despite the market capitalisation weighting methodology, the top 10 index stocks represent only approximately 11% of the weighting of the index, reflecting the larger universe and less top heavy nature of the universe. The Unhedged classification indicates that funds in this universe are currency unhedged, resulting in their returns being broadly affected by fluctuations in the Australian Dollar (AUD) versus other global currencies. In a falling market a depreciating AUD cushions returns, which aids investors in an unhedged fund. However, given the relative strength of the AUD over the past decade, despite being punctuated by some periods of extreme downside volatility, unhedged investors have substantially underperformed their currency hedged peers. PORTFOLIO APPLICATIONS International equities provide investors with a broad exposure to industries and countries. With such a broad universe, it is expected that managers can deliver superior returns to Australian equities and more conservative asset classes. However, the expectation of greater returns comes with increased volatility, especially when currency is factored in. Therefore, it is recommended that investors adopt a longer time frame when investing in international equities. It is also recommended that investments in international equities be blended with domestic equities and other non-correlated asset classes such as fixed income to diversify the impact of a downturn in the global economy. The Fund offers investors an exposure to U.S. equities across a broad range of sectors and market capitalisation segments. In addition, the Fund's investment approach focuses on income generation and volatility management with a modest level of capital growth over the long-term. To do so, the Fund trades the potential for higher capital appreciation for income generation and some downside protection. Zenith believes that the Fund is best suited to yield orientated investors with low conviction in active management who seek a cost effective solution. Zenith believes the Fund can be used as a satellite exposure to International equities, blended with a core equities product to enhance portfolio income levels. The Fund is best suited to income seeking investors who desire a lower level of volatility. Given the nature of the strategy employed by the Fund, portfolio turnover is expected to be high. Therefore, Zenith believes the Fund may suit investors with lower marginal tax rates. RISKS OF THE INVESTMENT SECTOR RISKS Funds within the International Equities - Exchange Traded Products sector are exposed to the following broad risks: MARKET DOWNTURN: The biggest risk for all global equities based products is a significant downturn across global equities markets, which could lead to periods of negative performance. This risk can be significantly reduced by investors adopting a medium to long-term (5+ years) investment time frame. AUD CURRENCY RISK: The Australian dollar (AUD) has historically experienced declines during weaker market environments, and appreciation in market upturns. For funds that maintain an unhedged currency exposure, an appreciating AUD is likely to have a negative impact on a fund s total return. Conversely, an unhedged fund is likely to benefit relative to hedged global equities funds in periods where the AUD depreciates. Zenith believes that over the long-term, the currency impact on performance will be minimal and therefore does not advocate retail investors making active currency decisions based on near-term currency predictions. For investors who are concerned about the short-term risks associated with taking fully unhedged or hedged currency positions, Zenith suggests blending hedged and unhedged global equity exposures to reduce short-term volatility. LIQUIDITY RISK: In some cases, global equities may present low liquidity in particular regions. Emerging markets and small cap stocks may display low liquidity due to low volume and fewer market participants than the major bourses. REGULATORY RISK: The ASIC Regulatory Guide 97 Disclosing Fees and Costs in PDSs and Periodic Statements' came into effect on 1 October 2017, and seeks to establish a common framework for disclosing fees with respect to registered managed investment schemes issued to retail investors. The guide is currently under review by ASIC, with final recommendations expected to be made before the end of In its current form, RG97 is not expected to impact the actual costs (or net returns) on existing investments. Rather, the guide is focused on providing increased transparency with Page 2 of 9

3 respect to the costs of management. Given this, it is feasible that under RG97, investors become more sensitive to the costs charged and seek lower cost alternatives, potentially leading to fund outflows. FUND RISKS Zenith has identified the following key risks associated with the Fund. Other risks may also exist and accordingly the following list is not intended to be all inclusive. KEY PERSON RISK: Notwithstanding the passive and quantitative investment approach employed by BetaShares, Zenith notes that key departures may still have a material impact while the team remains small. Specifically, Zenith believes key person risk is evident with Chief Investment Officer, Louis Crous. TURNOVER RISK: Increased Index activity due to constituent changes and corporate activity may increase portfolio turnover, giving rise to issues surrounding taxation and efficiency regarding portfolio trading costs. COUNTERPARTY RISK: The effective functioning of ETFs relies on numerous counterparties including the Authorised Participants and Approved Financial Institutions (swap counterparties). Any default of these parties obligations is likely to have a negative impact. In addition, the Fund gains its equity exposure through a third party ETF ishares Core S&P 500 ETF (NYSE:IVV). The Fund will therefore also be subject to risks which may arise from this counterpary relationship. DERIVATIVE RISK: The Fund may use derivatives. There are multiple risks associated with the use of derivatives; for example, the value of the derivative may not move in line with the underlying asset, counter-parties to the derivative may not be able to meet payment obligations (relevant when purchasing an option) or a particular derivative may be difficult or costly to trade. Derivative risk is mitigated in part through the Fund only using exchange traded options. BULL MARKET RISK: In strong bull markets, the Fund may struggle to keep up with long-only domestic funds due to the lower than market net exposure. If the Fund sells call options prior to the market experiencing strong positive capital growth, the Fund will likely be 'called away' (have the sold option exercised) with the Fund having to repurchase the stock at a premium to the sale price. QUALITATIVE DUE DILIGENCE ORGANISATION Established in 2009, BetaShares Capital Ltd (BetaShares) is a specialist provider of ETFs and first launched a listed product in BetaShares is a wholly owned subsidiary of BetaShares Holdings Pty Ltd (BSH) which is a subsidiary of Mirae Asset Global Investment Group (Mirae), with material minority stakes held by the BetaShares management team (currently 46.5%) and private investors (2.5%). As at 31 August 2018, BetaShares had $A 5.8 billion in funds under management across 46 products. Mirae, established in 1997, is a large Asian asset manager based in South Korea managed in excess of $US 120 billion in assets as at 31 August Mirae offers global support to BetaShares, through its ownership of Horizons ETFs, as well as strategic direction at the board level. Horizons ETFs (formally BetaPro Management Inc.) offers to market a broad ETF product range including equities, fixed income, commodities and currencies, overlaid with a range of styles such as leveraged, inverse, inverse leveraged, spreads and volatility. Horizons ETFs had more than $US 21 billion in assets under management as of 31 August Through the partnership with Mirae/Horizons ETFs, BetaShares' management team has greater access to global information regarding best practices, trading techniques, infrastructure, risk management systems and market information. Although BetaShares' technology, systems and resources are not as sophisticated as the majority of its ETF peers, Zenith believes Mirae's strategic ownership and operational support enable it to meet the Fund's objective. The BetaShares Board has four members, David Nathanson, Alex Vynokur, Thomas Park and JH Rhee. Respectively, Park and Rhee are Mirae's Head of Global Business Strategy and Global Head of ETF Business. Though Zenith notes the presence of Mirae Directors on the BetaShares Board as a positive, we would prefer to see at least some level of independent representation if not an independent majority as we believe this to be a best practice initiative. The Fund's market capitalisation is approximately $99 million as at 31 August INVESTMENT PERSONNEL Name Title Tenure Louis Crous Chief Investment Officer 9 Yr(s) Thong Nguyen Portfolio Manager 7 Yr(s) Don Hoang Chamath De Silva Assistant Portfolio Manager Assistant Portfolio Manager 4 Yr(s) 2 Yr(s) BetaShares currently have a staff of 45 located in their Sydney, Melbourne and Brisbane offices with four team members making up the investment team. All BetaShares ETFs are under the day to day operational control of its Chief Investment Officer, Louis Crous. Crous has over 15 years experience in financial services from prior roles at nabinvest and Rand Merchant Bank. Supporting Crous is Senior Portfolio Manager, Thong Nguyen. Nguyen has 13 years experience including previous roles at Three Pillars Portfolio Managers. In addition, further support is provided by two Assistant Portfolio Manager's Don Hoang and Chamath De Silva. That said, the BetaShares product suite has expanded rapidly in recent years and while it has not presented any adverse issues to date, Zenith believes the investment team is less well resourced compared to peers. Although the Fund's approach is traditionally process based, which limits the threat of key person risk, Zenith sees a degree of key person risk with Crous. Overall, Zenith believes the experience of the portfolio management team is adequate. However, we believe that the BetaShares investment team has less access to resources and Page 3 of 9

4 infrastructure than some of their global peers. INVESTMENT OBJECTIVE, PHILOSOPHY AND PROCESS The Fund aims to deliver three outcomes to investors: 1. Provide an income yield that exceeds the dividend yield of a portfolio of 500 large cap U.S. stocks as represented by the S&P 500 Index. 2. Provide a lower level of volatility than the S&P 500 Index. 3. Provide capital upside. To achieve its investment objective, the Fund seeks to earn income from dividends and option premiums while participating in some capital appreciation from holding a passive portfolio that closely mirrors the S&P 500 Index. SECURITY SELECTION The Fund gains its equity exposure by holding the ishares Core S&P 500 ETF (NYSE:IVV). Owing to its full replication process, the ishares ETF will hold all securities included in the S&P 500 Index at their constituent weight. The ishares ETF is cross listed from the U.S. However, given it is held by the Fund, some administrative burden (e.g. W-8 BEN lodgement and potential U.S. estate taxes) is removed. The ishares ETF has a long operating history in the U.S., having consistently met its Index tracking objectives to date. As at 31 July 2017, the ishares ETF has achieved a Tracking Error of 0.04% p.a., which Zenith considers to be highly competitive. In addition to dividends earned through the Fund, BetaShares seeks to generate additional income by selling short-term (one to three month maturity), out-of-the-money (2% to 5%) U.S. listed exchange traded Index call options on a monthly basis, up to 100% of the Fund's exposure to the Index. Call options will be sold only if a specified level of premium is generated at the target strike price. BetaShares expects that an average option premium yield of 3% p.a. to 6% p.a. over the mediumterm is achievable. BetaShares' option writing approach is based on research published by SIRCA for the ASX, which is in line with the approach taken by BetaShares' parent organisation, that depend on the prevailing levels of volatility. This gives BetaShares the ability to respond to changing market conditions and dynamically adjusts the option strike price at which call options are sold based on implied volatility. For example, in more volatile market environments a security's strike price will be higher. This is in contrast to adopting a fixed strike price rule where the potential for the underlying stock being 'called away' is higher, which reduces the premium income generated. Option positions may be executed over several days rather than at a designated schedule, which minimises the potential for frontrunning and market impact. Overall, Zenith believes that given the Fund's systematic process, we would prefer BetaShares provide an explicit benchmark (internally or externally), against which the strategy can be assessed. We believe that this transparency will improve the accountability of BetaShares and ultimately the Fund. INDEX CONSTRUCTION The S&P 500 Index is widely regarded as the most efficient single gauge of large capitalisation U.S. equities. The index includes 500 leading companies measured by free float market capitalisation with approximately 88% coverage of the market. The Index is highly liquid, actively traded and rebalances quarterly with little rotation in constituents. The Fund's portfolio turnover is driven by constituent changes in the Index (through its holding in the ishares ETF) and is expected to be less than 5% p.a. which Zenith considers to be very low. RISK MANAGEMENT Given its passive investment process, the Fund's risk management process is incorporated into its selection of ETF managers. The Fund will only invest in U.S. Index ETFs that are listed on North American exchanges, have a minimum of $US5 billion in funds under management (FUM) and substantially obtain their exposure by a direct holding of shares in the Index. Although the Fund has the ability to hold securities in the Index directly, Zenith believes it is cost effective to hold ETFs given the scale of FUM which would be required to make internalisation of this function feasible. The Fund does not formally set a Tracking Error objective however it is expected to be approximately 3% p.a. The Fund's options positions are monitored daily, with portfolio managers assessing factors which affect changes in option prices. The Fund is not permitted to sell options on more than 100% on a stock at any time, meaning the Fund will not sell naked call options. BetaShares writes European options (exercisable only at maturity) over expiry periods where an ex-dividend date exists on a particular security. This precludes holders of in-the-money call options from exercising their rights before an ex-dividend date in order to recieving underlying stock dividends. Zenith considers this approach to be suitable, which prevents the underlying stock from being called and protects option premium income. INVESTMENT FEES ETPs and ETFs contain a variety of explicit and implicit costs to the investor. Investors should be aware that poor ETP selection and/or trade execution can diminish any advantage gained by the lower management cost exhibited by ETPs in comparison to managed funds more broadly. Management Cost The management cost for the Fund is 0.79% p.a. with no performance fee. Overall, Zenith considers the management cost to be materially higher than the average International Shares Country Funds Alternative Beta ETF. Given that the underlying equity exposure to the S&P500 Index via other ETFs are available for less than 0.10% p.a., Zenith believes that the Fund can be structured more competitively for investors. Page 4 of 9

5 Bid/ask spread As listed products, investors are exposed to bid/ask spreads as an intangible cost of investment and divestment. The bid/ask spread is primarily a function of market liquidity in fund units as well as the presence of the maximum bid/ask spreads which are maintained by authorised participants and market makers. It should be noted that as a safeguard in the absence of a natural market in which two investors are transacting in the Fund, market makers ensure the maximum spread is limited to a pre-agreed spread limit. It is important to note however that bid/ask spreads tend to be at their highest and most volatile at the start and end of the trading day and decreases during the course of the day s trade as efficiency improves. Investors are able to use Indicative Net Asset Values (INAV) as an indication of the underlying fair value of an ETF during trading hours. As at 31 August 2018, the Fund has demonstrated trading spreads lower than peers in the International Shares Country Funds Alternative Beta ETF sector. Market Makers fulfil the role of generating necessary liquidity in the secondary market by providing continuous bid and offer prices acting as both the purchaser or seller of the ETP units, and applying for additional ETP units, where necessary, to meet investor demand. BetaShares currently uses three market makers for the Fund. Authorised Participants (APs) comprise the entities which are approved by the ETP Issuer to purchase ETP units in the primary market. BetaShares currently uses five APs for the Fund. Page 5 of 9

6 PERFORMANCE ANALYSIS Report data: 30 Sep 2018, product inception: Oct 2014 Monthly Performance History (%, net of fees) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC FUND YTD BM1 YTD BM2 YTD Benchmark 1: S&P 500 $A, Benchmark 2: CBOE Standard & Poor's 500 2% OTM BuyWrite Index Growth of $10,000 ABSOLUTE PERFORMANCE ANALYSIS Return Incpt. 3 yr 2 yr 1 yr Fund (% p.a.) Benchmark 1 (% p.a.) Benchmark 2 (% p.a.) Median (% p.a.) Ranking within Sector Incpt. 3 yr 2 yr 1 yr Fund Ranking 9 / / / / 73 Quartile 2nd 3rd 2nd 1st Monthly Histogram Standard Deviation Incpt. 3 yr 2 yr 1 yr Fund (% p.a.) Benchmark 1 (% p.a.) Median (% p.a.) Downside Deviation Incpt. 3 yr 2 yr 1 yr Fund (% p.a.) Benchmark 1 (% p.a.) Median (% p.a.) Risk/Return Incpt. 3 yr 2 yr 1 yr Sharpe Ratio - Fund Minimum and Maximum Returns (% p.a.) Sortino Ratio - Fund NOTE ON PERFORMANCE - Performance data contained in this report is based on an ETFs end of day Net Asset Value (NAV) as opposed to the last market price. Zenith has elected to use NAV over last price as this eliminates extraneous trading noise which typically occurs at the end of the trading day. While we see this as a cleaner approach to assessing ETF performance, readers should be aware that actual performance of an ETF may differ depending on the timing of investment and divestment of holdings. All commentary below is as at 31 August The Fund aims to provide exposure to a basket of large capitalisation U.S. shares (as represented by the S&P 500 Index), while providing attractive quarterly income that exceeds the yield of a portfolio of the underlying shares over the medium-term. The Fund also aims to provide lower volatility Page 6 of 9

7 than the underlying portfolio. The Fund has underperformed the S&P 500 Index over all time periods. However, Zenith notes the Fund's strategy is not conducive to up markets given the option overlay is likely to result in the Fund failing to fully participate in market upswings. The volatility of the Fund, as measured by standard deviation, has been lower than the S&P 500 Index over all assessed time periods. Additionally, Zenith has applied the CBOE S&P 500 2% OTM BuyWrite Index to enhance the assessment of the Fund's options overlay strategy. RELATIVE PERFORMANCE ANALYSIS Alpha Statistics Incpt. 3 yr 2 yr 1 yr Excess Return (% p.a.) % Monthly Excess (All Mkts) % Monthly Excess (Up Mkts) analysis for the Fund and benchmark(s) are calculated independently. That is, the largest drawdown for the Fund and benchmark(s) will not always refer to the same time period. Drawdown Analysis Fund BM1 BM2 Max Drawdown (%) Months in Max Drawdown Months to Recover Worst Drawdowns Fund Benchmark 1 Benchmark % Monthly Excess (Down Mkts) Beta Statistics Incpt. 3 yr 2 yr 1 yr Beta R-Squared Tracking Error (% p.a.) Correlation Risk/Return Incpt. 3 yr 2 yr 1 yr Information Ratio All commentary below is as at 31 August Since inception, the Fund has underperformed its assigned benchmark. However, Zenith notes that it has performed better in down markets over the medium to long-term. Given the investment strategy, investors should expect the Fund will perform best in falling or flat market environments. The Fund's beta, which measures its sensitivity to market movement, is lower than 1. This is evident of the fact that the Fund has a net market exposure less than 100%. Over all periods of assessment, the Beta has ranged between 0.8 and 0.9. The Fund does not target a level of Tracking Error, however it is expected to be approximately 3% p.a. primarily due to its options overlay. To date, the Fund has delivered a Tracking Error above up the upper end of its expected range since inception. DRAWDOWN ANALYSIS Drawdown analysis assesses the relative riskiness of a Fund versus the benchmark, in reference to capital preservation. The maximum Drawdown is recorded as the percentage decline in the value of a portfolio from peak to trough (before a new peak is achieved). All Drawdown analysis is calculated commencing from the inception date of the Fund in question, and Drawdown All commentary below is as at 31 August Inconsistent with the Fund's low market exposure, drawdowns have been greater than that of the S&P 500 Index tracked by the Fund. However, due to the Funds limited trading history and the lack of pronounced market drawdowns over the assessed period, Zenith believes there is insufficient information to make any assessment on the Funds drawdown profile relative to the S&P 500 Index. INCOME/GROWTH ANALYSIS Income / Growth Returns Income Growth Total FY to 30 Jun % 7.69% 12.53% FY to 30 Jun % 3.93% 9.49% FY to 30 Jun % -0.04% 6.58% FY to 30 Jun % 14.18% 17.96% The Fund aims to provide quarterly income that exceeds the yield of a portfolio of the underlying shares over the medium term. However, investors should be aware the Fund does not target a specific income level. Page 7 of 9

8 To date, the Fund has delivered on its yield objective. However, Zenith notes that in rising markets, this will frequently be at the cost of total return. The Fund is best suited to income seeking investors who desire a lower level of volatility. Given the nature of the strategy employed by the Fund, portfolio turnover is expected to be high. Therefore, Zenith believes the Fund may suit investors with lower marginal tax rates. REPORT CERTIFICATION Date of issue: 29 Oct 2018 Role Analyst Title Author Sector Lead Dugald Higgins Dugald Higgins Head of Property & Listed Strategies Head of Property & Listed Strategies Authoriser Bronwen Moncrieff Head of Research RATING HISTORY As At Rating 29 Oct 2018 Approved 4 Oct 2017 Approved 17 Oct 2016 Approved 24 Sep 2015 Approved 20 Mar 2015 Not Rated - Screened Out Last 5 years only displayed. Longer histories available on request. Page 8 of 9

9 DISCLAIMER AND DISCLOSURE Zenith Investment Partners (ABN ) is the holder of Australian Financial Services Licence and is authorised to provide general financial product advice. This Product Assessment Report (report) has been prepared by Zenith exclusively for Zenith clients and should not be relied on by any other person. Any advice or rating contained in this report is limited to General Advice for Wholesale clients only, based solely on the assessment of the investment merits of the financial product. This report is current as at the date of issue until it is updated, replaced or withdrawn and is subject to change at any time without notice in line with Zenith s regulatory guidelines. Zenith clients are advised to check the currency of reports and ratings via Zenith s website for updates. Any advice contained in this report has been prepared without taking into account the objectives, financial situation or needs of any specific person who may read it. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek their own independent financial advice, obtain a copy of, and consider any relevant PDS or offer document and consider the appropriateness of this advice in light of their own objectives prior to making any investment decision. Zenith charges an upfront flat fee to the Product Issuer, Fund Manager or other related party to produce research on funds that conform to Zeniths Research Methodology. Zenith s fee and Analyst remuneration are not linked to the rating outcome in any way. Views expressed in Zenith reports accurately reflect the personal, professional, reasonable opinion of the Analyst who has prepared the report. Zenith may also receive a fee for other non-research related services such as subscription fees for Zenith s research services and/or for the provision of investment consultancy services. Conflicts management arrangements are in place where Zenith provides research services to financial advisory businesses who provide financial planning services to investors and are also associated entities of the product issuers, with any such conflicts of interest disclosed within reports as appropriate. Full details regarding such arrangements are outlined in Zenith s Conflicts of Interest Policy /ConflictsOfInterestPolicy Zenith s research process seeks to identify investment managers considered to be the best of breed through a comprehensive, multi-dimensional selection process. Zenith utilises both quantitative and qualitative factors in its ratings models. Models maximise commonality across different asset classes while retaining flexibility for specialist asset classes and strategies. The selection process is rigorous in both its qualitative and quantitative analysis and each component is equally weighted. Zenith does not manage any proprietary assets and as such Zenith is able to choose investment managers with absolute independence and objectivity. More detailed information regarding Zenith s research process, coverage and ratings is available on Zenith s website /ResearchMethodology This report is subject to copyright and may not be reproduced, modified or distributed without the consent of the copyright owner. The information contained in this report has been prepared in good faith and is believed to be reliable at the time it was prepared, however, no representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this report. Except for any liability which cannot be excluded, Zenith does not accept any liability, whether direct or indirect arising from the use of information contained in this report. Past performance is not an indication of future performance. Full details regarding the methodology, ratings definitions and regulatory compliance are available at /RegulatoryGuidelines 2018 Zenith Investment Partners. All rights reserved. Zenith has charged BetaShares Capital a fee to produce this report. Page 9 of 9