Benefits of investing in the BetaShares Managed Risk Global Share Fund

• Equity returns with reduced downside risk - obtain exposure to the majority of the upside potential of global sharemarkets, with the benefit of potentially reduced downside in declining markets

• Income - opportunity to benefit from the dividends of global sharemarkets

• A smoother ride - potential for reduced volatility despite changing market conditions

• Diversification - gain exposure to a diversified portfolio of international shares in a single trade

• Cost effective - cost of Fund is lower than traditional active managers focussing on global equities

• Liquidity - available to trade on the ASX like any share

• Transparent - Fund's portfolio, value of the Fund's assets and net asset value per unit available daily on our website

About the Fund

• Provides exposure to a broadly diversified portfolio of global shares, while seeking to reduce the volatility of the equity investment returns and defend against losses in declining markets

• Designed specifically for investors looking for exposure to global shares whilst mitigating the risk of market volatility and large drawdowns

• Obtain equity exposure but alleviate concerns about uncertain financial markets

Investment objective

The Fund aims to provide exposure to a broadly diversified portfolio of global shares, while reducing the volatility of the equity investment returns and defending against losses in declining markets.

The Managed Risk Strategy

In addition to investing in the share portfolio, the Fund employs a risk management strategy. The Fund actively monitors sharemarket volatility and, when volatility rises, applies a "handbrake to reduce the impact of major market declines. It does this by reducing investors' exposure to shares in falling markets, while still allowing a level of participation in rising markets. The risk management strategy utilised by the Fund aims to provide investors with a smoother investment ride.

The risk management strategy is implemented by selling equity index futures contracts. Selling futures can be expected to generate a positive return when the sharemarket declines, and a negative return when the sharemarket rises. The extent of the risk management position will vary over time based on the existing and historic volatility of the share portfolio. Typically, the risk management position is expected to be in the range of 10-50%, and will not exceed 70%, of the Fund's net asset value. Generally, in periods of higher volatility, futures exposure will be increased, with the objective of lowering the Fund's volatility and reducing downside exposure.

How to use this ETF in your portfolio

While the Fund is expected to have broad application and be suitable for a variety of investors, it has been specifically designed to meet the needs of SMSFs, pre-retirees and retiree investors. The Fund can be used to implement a variety of investment strategies. For example:

• A core allocation to global shares, with reduced risk of market volatility and large drawdowns
• Tactical equity exposure for investors who may be concerned about uncertain financial markets

How we invest your money

The Responsible Entity will aim to achieve the investment objective by investing the Fund's assets into a portfolio that provides exposure to a passively managed, broadly diversified portfolio of global shares, generally consisting of approximately 1,500 of the largest companies listed on the stock exchanges of the world's major developed economies, weighted by their market capitalisation (the "Securities Portfolio). In addition, the Fund will employ a risk management strategy which actively seeks to reduce volatility and defend against losses in declining markets.

In addition to investing in the Securities Portfolio, the Fund will employ a risk management strategy. The risk management strategy will be implemented by selling equity index futures contracts with the aim of managing the Fund's overall volatility and cushioning downside risk by hedging against market declines. Selling equity index futures can generally be expected to generate a positive return when the relevant equity market declines, and a negative return when the relevant equity market increases. The Fund may sell futures contracts linked to benchmark equity indices in any of the markets in which it has equity exposure, although it expects that it will predominantly use S&P 500, Topix, FTSE 100 and Euro Stoxx 50 futures. Futures linked to a global developed market benchmark equity index (such as the MSCI World Index) may also be used. The extent to which futures positions will be used will vary over time (typically futures exposure is expected to be in the range of 10-50% of the Fund's net asset value) based on the existing and historic volatility of the securities in the Securities Portfolio and the equity markets to which the Fund is exposed in general. Generally, in periods of higher volatility, futures exposure will be increased, with the objective of lowering the Fund's volatility and reducing (although not eliminating) downside exposure.

The Responsible Entity will only use futures for the purpose of hedging and volatility management and not to leverage the Fund.

The Fund will maintain a cash balance to cover distribution payments and any margin requirements in relation to futures positions.

The composition of the Fund's portfolio of equity securities and futures contracts will be published daily on the "Resources section of the Fund's product page on the BetaShares website at www.betashares.com.au.