Confidential may not be distributed without the consent of BetaShares capital
Confidential may not be distributed without the consent of BetaShares capital
1. An analysis of the Australian share market, including the significant level of stock and sector level concentration that many investors have in their portfolios 2. The performance, volatility and portfolio characteristics for the Index tracked by the EX20 ETF 3. How the EX20 strategy can benefit Australian investor s portfolios Confidential may not be distributed without the consent of BetaShares capital
The Australian Sharemarket: An analysis Performance characteristics of EX20 s Index How EX20 s strategy can benefit investor portfolios Confidential may not be distributed without the consent of BetaShares capital
120% 100% 10% 80% 60% 40% 20% 0% 15% 25% 50% # Stocks Market Capitalisation 55% 19% 15% 11% 100-200th largest stocks Non-Blue Chip Large Cap (20-50th largest stocks) Mid-Cap (50-100th largest stocks) Blue Chip (1-20th largest stocks) Source: Bloomberg Confidential may not be distributed without the consent of BetaShares Capital 6
Source: Bloomberg Confidential may not be distributed without the consent of BetaShares Capital 7
Source: ASX Australian Share Ownership Study, 2002-2008. Note since 2008, ASX has not asked this question in their survey. Confidential may not be distributed without the consent of BetaShares Capital 8
Source: Bloomberg. EX20 aims to track the Nasdaq Australia Completion Cap Index. You cannot invest directly in an index. Confidential may not be distributed without the consent of BetaShares Capital 9
Source: Bloomberg. EX20 aims to track the Nasdaq Australia Completion Cap Index. You cannot invest directly in an index. Confidential may not be distributed without the consent of BetaShares Capital 10
The Australian Sharemarket: An analysis Performance characteristics of EX20 s Index How EX20 s strategy can benefit investor portfolios Confidential may not be distributed without the consent of BetaShares capital
RELATIVE EQUITY PERFORMANCE TO SEPTEMBER 2016 Source: Bloomberg. Performance shown here is the Index which EX20 aims to track (Nasdaq Australia Completion Cap Index). You cannot invest directly in an index. Performance excludes the impact of ETF fees and expenses. Past performance is not an indication of future performance of the Index or the ETF. Index inception was March 2001. Confidential may not be distributed without the consent of BetaShares Capital 12
Source: Bloomberg. Performance shown here is the Index which EX20 aims to track (Nasdaq Australia Completion Cap Index). You cannot invest directly in an index. Performance excludes the impact of ETF fees and expenses. Past performance is not an indication of future performance of the Index or the ETF. Index inception was March 2001. Confidential may not be distributed without the consent of BetaShares Capital 13
Source: Bloomberg. Confidential may not be distributed without the consent of BetaShares Capital 14
Contents The Australian Sharemarket: An analysis Performance characteristics of EX20 s Index How EX20 s strategy can benefit investor portfolios Confidential may not be distributed without the consent of BetaShares capital
Product Name: Investment Objective BetaShares Australian Ex-20 Portfolio Diversifier ETF The Fund aims to track the performance of an index (before fees and expenses) which provides exposure to approximately 180 stocks listed on the Australian Securities Exchange, ranked from number 21 to number 200, based on their market capitalisation. Key Information ASX Code Bloomberg Code IRESS Code Asset backing Management Fee Expense recoveries EX20 EX20 AU EX20.AXW Equities 0.20% p.a. capped at 0.05% p.a. Inception Date 5 October 2016 Top 10 Index Components 30 September 2016 Company Weighting Newcrest Mining Ltd 2.9% Sydney Airport 2.5% South32 Ltd 2.2% AGL Energy Ltd 2.1% Insurance Australia Group Ltd 2.1% Goodman Group 2.0% ResMed Inc 2.0% Stockland 1.9% Ramsay Health Care Ltd 1.7% Vicinity Centres 1.7% Sector Allocation 30 September 2016 Materials 19.1 Real Estate 13.4 Consumer Discretionary 12.6 Health Care 10.8 Industrials 10.7 Financials 10.5 Utilities 7.2 Energy 6.3 Consumer Staples 4.0 Confidential may not be distributed without the consent of BetaShares Capital Telecommunication Services 2.3 16
Confidential may not be distributed without the consent of BetaShares Capital 17
The Fund provides investors with a simple, cost-effective way to obtain exposure to a passively-managed, diversified portfolio of Australian shares, excluding the largest 20 stocks by market capitalisation Benefits of EX20 include: Diversification - with a single trade, investors can get exposure to a broad portfolio of Australian shares, excluding the largest 20 shares as these stocks are already held in many investors portfolios Cost effectiveness- Fund tracks the performance of an index (no active manager fees) Transparency - portfolio holdings, value of the Fund s assets and net asset value per unit available daily on BetaShares website Liquidity - trades on ASX during the trading day Confidential may not be distributed without the consent of BetaShares Capital 18
Illustrative portfolio based on the largest 7 domestic holdings in Class Super s SMSF Benchmarking Report, June 2016. 7 stocks chosen to align with ASX Share Ownership Survey noted earlier. EX20 aims to track the Nasdaq Australia Completion Cap Index. You cannot invest directly in an index. EX20 weights as at 30 September 2016. Between rebalance dates, the index constituents may differ from 180 due to corporate actions. Confidential may not be distributed without the consent of BetaShares Capital 19
Source: Illustrative portfolio based on the largest 7 domestic holdings in Class Super s SMSF Benchmarking Report, June 2016. 7 stocks chosen to align with ASX Share Ownership detailed above. EX20 aims to track the Nasdaq Australia Completion Cap Index. You cannot invest directly in an index. EX20 weights as at 30 September 2016. Confidential may not be distributed without the consent of BetaShares Capital 20
An investment in EX20 may provide attractive benefits for portfolios, including: Enhanced diversification - gain exposure to a portfolio of Australian shares in a single trade and access to a broad range of securities that would otherwise be difficult for an individual to purchase directly Portfolio completion - Fund provides access to a portfolio that specifically excludes stocks to which many investors are already exposed Cost effective - no active manager fees Liquidity - trades on ASX during the trading day Transparent - Fund s portfolio, value of the Fund s assets and net asset value per unit available daily on BetaShares website Confidential may not be distributed without the consent of BetaShares capital
Market risk: Investment returns will be influenced by the fluctuations of the sharemarket as a whole Small/mid-cap securities risk Investors should seek professional financial advice before investing Past performance is not an indication of future performance See PDS for further information
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