Product Review BetaShares Australian Bank Senior Floating Rate Bond ETF

Key information What this Rating means FUND MANAGER BETASHARES CAPITAL LTD The ‘Recommended Index’ rating indicates that Lonsec ASSET CLASS FIXED INTEREST has strong conviction the financial product can generate SECTOR ALTERNATIVE INCOME risk adjusted returns in line with relevant objectives. SUB SECTOR PASSIVE The financial product is considered an appropriate entry INVESTMENT EXCHANGE TRADED FUND (ETF) LISTED ON THE point to this asset class or strategy. TYPE AUSTRALIAN SECURITIES EXCHANGE ISSUE DATE 22-04-2021 PDS OBJECTIVE TO PROVIDE AN INVESTMENT RETURN THAT AIMS Strengths TO TRACK THE PERFORMANCE OF THE SOLACTIVE • The Fund presents a simple, transparent and efficient AUSTRALIAN BANK SENIOR FLOATING RATE BOND way for investors to position themselves against a INDEX, BEFORE TAKING INTO ACCOUNT FEES AND rising interest rate environment. EXPENSES • There is a low default risk since the underlying INDEX PROVIDER SOLACTIVE AG holdings are senior bonds issued by large Australian UNDERLYING SOLACTIVE AUSTRALIAN BANK SENIOR FLOATING banks. INDEX RATE BOND INDEX • The Fund currently has a competitive management DERIVATIVE USE IN LIMITED CIRCUMSTANCES AND CANNOT BE USED TO expense ratio ('MER') in its peer group of 0.22% p.a. LEVERAGE THE FUND compared to its only competitor. SECURITIES LENDING NONE • The Fund aims to provide monthly distributions ASX LISTING DATE JUNE 2017 which should provide regular income to investors. DISTRIBUTION FREQUENCY MONTHLY FUND SIZE $674.38M Weaknesses • The Underlying Index rule which ranks FRNs from Fees longest to shortest may not be advantageous for flat MANAGEMENT 0.22% P.A. (INCLUDES EXPENSE RECOVERY FEE UP credit curves. COSTS TO 0.03% P.A.) • The Fund's portfolio has high concentration risk to individual companies. Daily trading information • While having experience in managing Australian TICKER QPON and Global equity portfolios, the Manager is still 52 WEEK LOW $25.60 building a track record with managing fixed interest 52 WEEK HIGH $26.23 portfolios. LAST PRICE $26.04 • The Fund tracks a bespoke index that is still building LAST NET ASSET VALUE (NAV) $26.07 a track record. PREMIUM / DISCOUNT TO NAV (DAILY) -0.001% AVERAGE DAILY TRADED VOLUME 90,442 Fund Risk Characteristics AVERAGE DAILY TRADED VALUE $2.33M LOW MODERATE HIGH BUSINESS SUSTAINABILITY RISK CAPITAL VOLATILITY SECURITY CONCENTRATION RISK SECURITY LIQUIDITY RISK CREDIT RISK INTEREST RATE RISK 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 1 2 3 4 5 6 7 STD RISK MEASURE

A Standard Risk Measure score of 3 equates to a Risk Label of ‘Low to Medium’ and an estimated number of negative annual returns over

ANALYST: HEWAD SAFI | APPROVED BY: NATHAN UMAPATHY any 20 year period of 1 to less than 2. This is a measure of expected frequency (not magnitude) of capital losses, calculated in accordance with ASFA/FSC guidelines. 7

- We strongly recommend that potential investors read the product disclosure statement Lonsec Research Pty Ltd ABN 11 151 658 1 561 • AFSL No. 421 445 • This information must be read in conjunction with the warning, disclaimer, and disclosure at the end of P this document. This report supersedes all prior reports. BetaShares Australian Bank Senior Floating Rate Bond ETF

LOW MODERATE HIGH • Alternative Income sector products are typically RISK TO INCOME managed with the aim of generating returns that exceed cash (or a cash proxy such as the Bloomberg Features and benefits Ausbond Bank Bill Index) by a margin. Product risk LOW MODERATE HIGH (Standard Deviation) expectations are generally positioned as low, barring periods of exceptional COMPLEXITY market circumstances. ESG

ISSUE DATE 22-04-2021 • Lonsec suggests that the Fund should only be considered for investors who are (a) seeking yields Fee profile greater than those from available in cash or cash-like LOW MODERATE HIGH instruments (e.g. bank bills) and, more importantly, FEES VS. UNIVERSE (b) those prepared to accept low to moderate FEES VS. ASSET CLASS volatility in the share price. FEES VS. SUB-SECTOR • The Fund may be considered beneficial for investors seeking a bond exposure but who are concerned Fee BIOmetrics are a function of expected total fee as a percentage of expected total return. about the adverse impact of rising rates on fixed rate investments. What is this Fund? Suggested Lonsec risk profile suitability • BetaShares ('the Manager') adopts a passive SECURE DEFENSIVE CONSERVATIVE BALANCED GROWTH HIGH GROWTH investment strategy in managing the BetaShares Australian Bank Senior Floating Rate Bond ETF (ASX: QPON or 'the Fund'). The Fund aims to track the For guidance on appropriate asset allocations and risk profiles, refer performance of the Solactive Australian Bank Senior to the latest Lonsec Strategic Asset Allocation Review and Risk Profile Definitions on our website. Floating Rate Bond Index ('the Underlying Index'). The Underlying Index is a bespoke index and is Changes Since Previous Lonsec Review designed to invest in senior floating rate notes (FRNs) that are only issued by Australian banks. FRNs pay • On a corporate level, Mirae Asset Global Investment distributions or coupons referenced to the bank bill Group (‘Mirae’) has sold their 51% stake in swap rate, which moves up or down with changes BetaShares to a US private equity firm TA Associates short term interest rates. (‘TA’). TA also acquired a further 2.5% from minority shareholders, taking their total stake in BetaShares to • The Fund is structured to be very concentrated with a at least 53.5%. maximum of 14 securities from up to 10 issuers. • Over the last 12 months, the BetaShares Investment • Investors should note that prices of FRNs are Team added Jessica Leung as Assistant Portfolio sensitive to movements in credit spreads, however, Manager and Parker Guan as an Assistant Trader, FRN prices are less sensitive to fluctuations in interest whilst Luke Sheather (previously Investment rates than comparable fixed-rate bonds. Analyst) left the team. • As at February 2021, at least 80% of the FRNs held by • Lonsec notes the investment process remains the the Fund are issued by the ‘big 4’ banks, with terms same since the previous review. to maturity of one to four years. The Underlying Index rebalances on a quarterly basis and the index rules mean the Fund will sell shorter-dated FRNs Lonsec Opinion of this Fund in favour of longer-dated FRNs. As such, portfolio People and resources turnover is expected to be high at approximately • BetaShares is a specialist provider of ETFs with 100% p.a. approximately $17.3bn in funds under management • As per the PDS, exchange-traded derivatives ('FUM') across 62 exchange-traded products as at contracts (e.g. bond futures contracts) are permitted April 2021. This includes both active and passive to be held within the Fund but will only be used in ETFs. limited circumstances and are not a common feature • BetaShares was formed in 2009 and previously of the Fund. For example, derivatives may be used to majority owned by Mirae Asset Global Investment manage tracking error in the event of large inflows Group. As at Q1 2021, Mirae sold all their stake to into the Fund. TA Associates. TA is a well established US based • As per the Fund’s PDS, dated 24 May 2017, the fee private equity firm with over 50 years’ experience disclosure for the Fund is as follows: a management and a global presence. Further, TA has a long history fee of 0.19% p.a. and estimated recoverable expenses of co-investing in fund managers, Lonsec believes TA of 0.03% p.a. The Responsible Entity estimates that has the ability to provide the necessary resources to the net transactional and operational costs of the help drive BetaShares’ growth over the long-term. Fund for the current financial year (adjusted to reflect • The Fund is managed by an investment team of a 12 month period) will be approximately 0.20% p.a. seven in Louis Crous (CIO), Thong Nguyen (Senior of the Fund’s Net Asset Value. Portfolio Manager), Chamath De Silva (Portfolio Manager), Don Hoang (Portfolio Manager), Jing Using this Fund Jia (Assistant Portfolio Manager), Jessica Leung (Assistant Portfolio Manager) and Parker Guan This is General Advice only and should be read in (Assistant Trader). Lonsec notes that Leung and conjunction with the Disclaimer, Disclosure and

ANALYST: HEWAD SAFI | APPROVED BY: NATHAN UMAPATHY Guan recently joined and Luke Sheather, previously Warning on the final page. Investment Analyst, has left the team. Lonsec notes 7

- Lonsec Research Pty Ltd ABN 11 151 658 561 • AFSL No. 421 445 • This information must be read in conjunction with the warning, 2 disclaimer, and disclosure at the end of this document. This report supersedes all prior reports. P BetaShares Australian Bank Senior Floating Rate Bond ETF

that outside of this departure the team has been • The Fund is managed in accordance with a clearly stable. Lonsec has met with Crous, Nguyen and De defined set of rules and is monitored daily by the Silva on numerous occasions and believes them to investment team. Lonsec believes the Fund’s risk be suitably experienced and qualified to oversee this constraints, as well as the monitoring systems in strategy in the Australian market. place, are appropriate for the Fund. Relative to more • Nevertheless, Lonsec notes that BetaShares currently active peers, however, Lonsec notes that the Fund’s manage a large number of ETFs listed on the ASX. risk management procedures, limits and systems are less sophisticated. ISSUE DATE 22-04-2021 While the current size of the investment team is growing, the team is still smaller relative to peers • The Manager does not undertake any form of credit with the number of Funds offered. In saying that, analysis on the bank FRN issuers, with the only Lonsec remains comfortable with the firm's current requirement for potential inclusion in the Underlying resourcing given the simple structure of the Fund. Index (and thus the Fund) being a minimum credit The Manager has signalled that will continue rating of BBB+. to launch new products in line with its strong growth. As such, Lonsec will continue to review the ESG Integration firm's resourcing capacity during future reviews. • Passive and index tracking portfolios present Lonsec also notes that given the highly systematic challenges for the full integration of ESG factors approach to portfolio construction, key person risk is into the investment process. While some degree considered low. of ESG incorporation, including stewardship and • The Fund is currently supported by multiple market active voting, are possible with equity portfolios, makers and authorised participants. Lonsec believes the inability for fixed interest investors to vote this arrangement benefits investors, as it promotes further limits the potential in this asset class. The competition and tighter spreads within the primary emergence of fixed interest indexes with ESG and secondary markets. considerations built into index construction is a positive development that will, in time, provide • The Underlying Index provider, Solactive AG, more ESG aligned index funds in fixed income. Due is still relatively new to the Australian market, to the limitations in this asset class, the ESG score however, their indices have been tracked by many provided by Lonsec is primarily an assessment of global ETF providers since 2006. Lonsec considers the overall ESG adoption, commitment and policy the Underlying Index provider to be transparent, framework implemented at the Manager level. Where as it makes both the Underlying Index rules and ESG considerations are clearly incorporated into the constituents easily available to the public via its index construction this is also considered. website. • The Manager has articulated a commitment to the Investment approach integration of ESG within their investment process, however there is little evidence in their public • The Fund tracks a simple rules-based index which positioning. The ESG policy is freely available on the does not require the Manager to conduct credit firm’s website. The level of disclosure with respect research or make top-down portfolio construction to the Manager's proxy voting policy and voting calls. The only discretion afforded to the portfolio outcomes is in-line with peers supported by publicly management team is in respect of trade execution available voting outcomes. Disclosure with respect to where it is incumbent upon the team to trade in the the Manager’s engagement policies and engagement most cost effective manner. outcomes is considered to be lagging peers. • Lonsec notes the Underlying Index ranks eligible • The Underlying Index used for this Fund has no basic securities by term to maturity from longest to filters applied and there is no integration of ESG shortest. This means the Fund rebalances into longer- factors in its construction. Overall, on a peer relative dated securities on a quarterly basis. During periods basis and considering the limitations created by the where the yield curve is normally shaped, the asset class, Lonsec considers the overall level of ESG Fund’s running yield could be expected to increase. integration within this Fund to be Low. However, the Fund’s running yield could be expected to decrease when the credit curve is flat or the Overall underlying cash rates decline. • Lonsec has maintained its 'Recommended Index' rating • Lonsec believes that in the event of the Australian for this Fund as part of this review cycle. Lonsec banking system stress and/or consolidation similar views the use of an ETF structure as an efficient and to that experienced by many banking systems cost effective way to gain access to floating interest globally during the global financial crisis, it would rate exposure and take advantage of a rising interest be necessary to revisit the Underlying Index rules. rate environment. The offering is also competitively Furthermore, Lonsec notes that there may be short- priced relative to peers. term supply constraints when considering the Australian senior FRN market. This is in light of the • However, Lonsec notes that Fund has a highly introduction of the Reserve Bank of Australia's (RBA) concentrated portfolio and is less diversified Term Funding Facility (TFF) which has, to some compared to peer group. Further, the Manager is extent, lessened the need for short-term bank balance also still building a track record with managing fixed sheet funding via the corporate debt market. Lonsec interest portfolios. considers this a temporary structural impediment to the market and the Fund until the RBA dispenses

ANALYST: HEWAD SAFI | APPROVED BY: NATHAN UMAPATHY with this facility. 7

- Lonsec Research Pty Ltd ABN 11 151 658 561 • AFSL No. 421 445 • This information must be read in conjunction with the warning, 3 disclaimer, and disclosure at the end of this document. This report supersedes all prior reports. P BetaShares Australian Bank Senior Floating Rate Bond ETF

People and Resources The Underlying Index only includes floating rate debt securities, denominated in Australian dollars which are BetaShares Holdings was established in 2009 as a eligible for use in the Reserve Bank of Australia’s (RBA) specialist provider of exchange traded products. It domestic market operations. is currently majority owned by TA Associates, and the remainder by BetaShares' management team. The minimum issuance size for eligible bonds is $500 TA Associates is a US based private equity firm million with a time to maturity of at least 12 months with over US$28 billion invested within different and not more than 60 months as of the rebalance date. ISSUE DATE 22-04-2021 companies worldwide, as at March 2021. BetaShares has Subordinated, covered, convertible and callable bonds approximately $17.3b of FUM across 62 ETF products as are not eligible for Fund inclusion. at April 2021. Eligible bonds are issued by a select list of Australian banks, which are categorised as either Band 1 or Band 2. Size and experience Band 1 bonds are issued by:- EXPERIENCE • Australia & New Zealand Banking Group Limited; INDUSTRY / • Commonwealth Bank of Australia; NAME POSITION FIRM • National Australia Bank Limited; and LOUIS CROUS CHIEF INVESTMENT 20 / 11 • Westpac Banking Corporation. OFFICER Band 2 bonds are issued by:- THONG NGUYEN SENIOR PORTFOLIO 16 / 10 MANAGER • AMP Bank Ltd; CHAMATH DE SILVA PORTFOLIO MANAGER 11 / 4 • Bank of Queensland Limited; DON HOANG PORTFOLIO MANAGER 10 / 6 • Bendigo & Adelaide Bank Limited; JING JIA ASSISTANT PORTFOLIO 8 / 2 • Macquarie Bank Limited; MANAGER • Members Equity Bank Limited; and JESSICA LEUNG ASSISTANT PORTFOLIO 6 / <1 • Suncorp-Metway Limited. MANAGER Securities with the longest maturities in Band 1 are PARKER GUAN ASSISTANT TRADER 6 / <1 selected with up to two per issuer. A weighting of at least 80% based on market value, with each security 58 of Betashares' 62 ETFs are managed in-house by its equal weighted. Securities with the longest maturities seven-person portfolio management team in Sydney in Band 2 are selected with up to one per issuer. A total led by Louis Crous. The investment decisions for weight of 20% based on market value, with each security RINC, EINC, EMMG (Legg Mason Martin Currie) equal weighted up to max of 5%. and BNDS (Legg Mason Western Asset) are made A maximum of 14 securities are selected where 8 are by the respective active management teams. The issued by Australian banks from Band 1 and 6 are issued BetaShares business currently employs an additional by Australian banks from Band 2. Within each band, +70 dedicated financial service professionals and more securities with the longest term to maturity (up to a broadly benefits from access to the broader distribution, maximum of two securities per issuer) are selected. research, infrastructure and risk management systems. There is a difference in the treatment of cash generated by the FRNs. The Index assumes immediate Investment Approach reinvestment whereas the ETF can retain some cash Overview anticipation of distributions and also for day to day The Fund seeks to track the Underlying Index (before liquidity needs should it be required. fees and expenses) and invests all of its assets in senior FRNs issued by APRA regulated Australian banks. INDEX METRIC DATA The Manager does not undertake fundamental credit INDEX PROVIDER SOLACTIVE research on underlying banks before investing in FRNs, NUMBER OF HOLDINGS 13 (FEB 2021) however, there is a requirement that securities must be NUMBER OF ISSUERS 9 (FEB 2021) eligible for use in the RBA’s domestic market operations. AVERAGE CREDIT RATING AA- (FEB 2021) The RBA’s eligibility criteria include a requirement that securities have a minimum credit rating of BBB+. AVERAGE MODIFIED DURATION 0.15 YEARS (FEB 2021) The majority of the Portfolio Management team’s RUNNING YIELD 0.86% (FEB 2021) analysis involves monitoring FRN liquidity with a view YIELD TO MATURITY 0.36% (FEB 2021) to ensuring efficient and cost effective portfolio changes. TOP 10 ISSUER WEIGHTING 90.3% (FEB 2021) Due to its scale and banking relationships, BetaShares REBALANCING QUATERLY is able to negotiate favourable terms in normal market environments. Transparency

Underlying index BetaShares website www.betashares.com.au is both comprehensive and user-friendly. It is designed as The Fund seeks to track the Underlying Index by a self-service website with information relating to adopting a full replication approach. The Underlying performance and current holdings for all BetaShares Index is rebalanced on a quarterly basis and will be ETFs. constituted by a maximum of 14 securities from up to 10 issuers. There are no formal rules around liquidating

ANALYST: HEWAD SAFI | APPROVED BY: NATHAN UMAPATHY FRNs in the event of a credit rating downgrade or other adverse events. 7

- Lonsec Research Pty Ltd ABN 11 151 658 561 • AFSL No. 421 445 • This information must be read in conjunction with the warning, 4 disclaimer, and disclosure at the end of this document. This report supersedes all prior reports. P BetaShares Australian Bank Senior Floating Rate Bond ETF

Liquidity Risks The Fund offers investors liquidity via the ASX, which An investment in the Fund carries a number of is supported by dedicated market makers that are standard investment risks associated with domestic obligated to provide continuous liquidity to the market and international investment markets. These include by maintaining pre-agreed spreads and volumes on the economic, political, legal, tax and regulatory risks. ASX. These and other risks are outlined in the relevant As at 28 February 2021, the Fund managed $761.6m PDS and should be read in full and understood by ISSUE DATE 22-04-2021 in FUM and traded every day over the last 12 months, investors. Lonsec considers the major risks to be: which Lonsec considers more than sufficient for the Performance risk Fund's secondary market liquidity. There is no assurance or guarantee the returns of the The Fund's underlying holdings comprise of floating Fund will meet its investment objective. rate notes which are not listed on the ASX and trade over-the-counter between market participants, often Interest rate risk in minimum parcel sizes up to $200,000. Investors Interest rates payable on the securities held by the Fund, should be aware that during normal market conditions, being floating rate debt securities will vary from period liquidity for these securities will not be a concern, to period based on movements in the relevant reference however in times of market stress, some securities may rate. In a period of falling interest rates, distributions experience more challenging liquidity conditions. from the Fund could be expected to fall. However, because the securities held by the Fund typically adjust Fees and Indirect Costs their payments frequently, movements of interest rates The Fund’s management fee is 0.19% p.a. and has an can be expected to have less impact on the prices of expense recovery of 0.03% p.a., for a combined MER of securities than fixed rate debt securities. 0.22% p.a. The Fund's total MER is low in absolute terms Credit risk and in line with its only comparable peer. Additionally, Lonsec notes that the Fund maintained a competitive Investors are exposed to the risk that an issuer of average bid / ask spread of 0.05% over the 12 months to floating rate bonds may default on making its payment January 2021. This is a low spread when compared to obligations, thereby effecting the Fund’s value. the Lonsec peer group. Concentration risk The bid / ask spread represents the average daily spread The Fund’s investments will be concentrated in a over a one-year period but may not reflect the actual relatively small number of securities, from a relatively spread incurred. Investors can use limit price orders small number of issuers within the Australian banking which allow them to nominate a price at which they can industry. There is potential for the overall returns on the buy and sell. investment portfolio to be adversely affected due to the poor performance of only one or a few of the issuers or Fee comparison securities held in the index. BID/ASK SPREAD Index tracking risk FUND NAME MER (% P.A.) (%)* The Fund should not be expected to track the BETASHARES AUSTRALIAN BANK SENIOR 0.22 0.05 performance of the Index exactly, but generally aims to FLOATING RATE BOND ETF (QPON) minimise any deviation from the Index. VANECK VECTORS AUSTRALIAN FLOATING 0.22 0.06 RATE ETF (FLOT) Counter-party risk The Fund takes on counter-party risk with regard to its Source: ASX. Daily average Bid / Ask spread over 12 market-making activities. Counter-parties may default months to February 2021. on their contractual obligations, potentially exposing investors to some financial losses. Performance Further information The Fund was launched in June 2017 and is still building a track record. The Fund recorded an excess return after- Further information can be obtained by fees of -0.19% p.a. since inception as at 28 February 2021. calling BetaShares on 1300 487 577 or visiting: www.betashares.com.au The Fund has maintained tight tracking of the Underlying Index, providing a Tracking Error for the three-year and one-year period of 0.07% p.a. each, as at 28 February 2021. On an absolute basis, the Fund has delivered a performance return of 2.45% p.a. and 2.04% p.a. for the three-year and one-year period, as at the reference date. ANALYST: HEWAD SAFI | APPROVED BY: NATHAN UMAPATHY 7

- Lonsec Research Pty Ltd ABN 11 151 658 561 • AFSL No. 421 445 • This information must be read in conjunction with the warning, 5 disclaimer, and disclosure at the end of this document. This report supersedes all prior reports. P BetaShares Australian Bank Senior Floating Rate Bond ETF

Quantitative Performance Analysis - annualised after-fee % returns (at 31-3-2021) Performance metrics 1 YR 2 YR 3 YR 5 YR TOTAL RETURN (% PA) 3.77 2.28 2.59 - STANDARD DEVIATION (% PA) 1.72 1.88 1.59 - EXCESS RETURN (% PA) -0.19 -0.23 -0.23 -

ISSUE DATE 22-04-2021 WORST DRAWDOWN (%) -0.29 -1.55 -1.55 - TIME TO RECOVERY (MTHS) NR 1 1 - TRACKING ERROR (% PA) 0.03 0.05 0.06 -

PRODUCT: BETASHARES AUSTRALIAN BANK SENIOR FLOATING RATE BOND ETF PRODUCT BENCHMARK: SOLACTIVE AUSTRALIAN BANK SENIOR FLOATING RATE BOND INDEX TIME TO RECOVERY: NR - NOT RECOVERED, DASH - NO DRAWDOWN DURING PERIOD

Growth of $10,000 over three years Monthly excess returns over three years

Premium/discount to NAV over three years Traded Volume and FUM ANALYST: HEWAD SAFI | APPROVED BY: NATHAN UMAPATHY 7

- Lonsec Research Pty Ltd ABN 11 151 658 561 • AFSL No. 421 445 • This information must be read in conjunction with the warning, 6 disclaimer, and disclosure at the end of this document. This report supersedes all prior reports. P BetaShares Australian Bank Senior Floating Rate Bond ETF

Glossary Click here for the glossary of terms. 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 2011. From 1 July 2011, Lonsec became a fully owned subsidiary of Lonsec Fiscal ISSUE DATE 22-04-2021 Holdings Pty Ltd, a privately owned entity with a multi- brand 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. ANALYST: HEWAD SAFI | APPROVED BY: NATHAN UMAPATHY 7

- LONSEC STRONGLY RECOMMENDS THIS DOCUMENT BE READ IN CONJUNCTION WITH THE RELEVANT PRODUCT 7 DISCLOSURE STATEMENT. IMPORTANT NOTICE: Issued by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). P Lonsec receives a fee from the fund manager or financial product issuer(s) for researching the financial product(s), using objective criteria and for services including research subscriptions. Lonsec’s fee is not linked to the rating(s) outcome. Lonsec Investment Solutions Pty Ltd ABN 95 608 837 583 CAR (CAR: 001236821) of Lonsec receives fees under separate arrangement 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. Refer to the Conflicts of Interest Statement at: Lonsec.com.au/important-documents 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). Warnings: In line with industry practice returns may be estimated, to access verified returns please refer to the product provider. Past performance is not a reliable indicator of future performance. Any advice is General Advice based on the investment merits of the financial product(s) alone, without considering the investment objectives, financial situation and particular needs of any particular person. It is not a recommendation to purchase, redeem or sell the relevant financial product(s). Before making an investment decision the reader must consider his or her financial circumstances or seek personal financial advice on its appropriateness. Read 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 participate in Lonsec’s research process, Lonsec reserves the right to withdraw the document at any time and discontinue future coverage. The product rated in this publication 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, seek professional advice before you make an investment decision on 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. 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. ©2021 Lonsec. All rights reserved. This report may also contain third party material that is subject to copyright. To the extent that copyright subsists in a third party it remains with the original owner and permission may be required to reuse the material. Any unauthorised reproduction of this information is prohibited.