Benefits of investing in the BetaShares Australian Investment Grade Corporate Bond ETF

• Regular, attractive income - income paid monthly, and expected to exceed income paid on cash, term deposits, government and composite bond exposures

• Diversification & defence - investment grade fixed-rate Australian corporate bonds have historically tended to rise in value when Australian shares have fallen, providing diversification benefits and defensive characteristics to portfolios

• Low cost - management cost of only 0.25% p.a.

• Ranking - underlying portfolio comprises senior bonds, which rank above shareholders in the event of issuer default

• Access - simple way to access a portfolio of Australian investment grade corporate bonds, which are inaccessible to most investors directly

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

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

The product is likely to be appropriate for a consumer seeking capital preservation and regular income by providing exposure to a portfolio of senior, fixed-rate, investment grade Australian corporate bonds, to be used as a core allocation, or small allocation, to fixed income within a portfolio where the consumer has a medium to long investment timeframe (3+ years), medium risk/return profile and needs daily access to capital.

About the Fund

The Fund aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of investment grade fixed-rate Australian corporate bonds. The Fund's strategy will preference securities offering superior expected excess returns over Australian government bonds.

The key characteristics of the Fund include:

• Aims to provide attractive income distributions, paid monthly, combined with compelling portfolio diversification benefits

• By selecting bonds based upon expected returns rather than debt outstanding, CRED's index methodology seeks to avoid shortcomings of traditional debt-weighted indices and provide relatively higher returns

• The portfolio is comprised of senior, fixed rate, investment grade securities denominated in Australian dollars, issued by companies listed on the ASX or other eligible entities

• Eligible bonds must have amounts outstanding of at least $250m and a term to maturity of between 5.25 to 10.25 years

• Up to 35 bonds are selected from eligible universe, with each bond assigned an equal weight as at each rebalance date

• No single issuer shall have a weight in excess of 7% at each re-balance date

Investment objective

The Fund aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of investment grade fixed-rate Australian corporate bonds. The Fund's strategy will preference securities offering superior expected excess returns over Australian government bonds.

How to use this ETF in your portfolio

The Fund can be used to implement a variety of investment strategies. For example:

1. A core component of a fixed income allocation providing attractive income and diversification benefits to investment portfolios
2. A complement to or substitute for composite bond or government bond investments with the potential for higher returns
3. A complement to cash or floating rate bond allocations allowing an investor to vary the duration exposure, credit exposure and income levels in portfolios

How we invest your money

The Fund will generally seek to invest in a portfolio of bonds that comprise the Index in proportion to the weightings of these bonds in the Index.

The Index is designed to provide exposure to corporate bonds in Australia, with each bond having a minimum investment grade credit rating. In order to be eligible for inclusion in the Index, each bond must be a senior, fixed rate, investment grade debt security denominated in Australian Dollars, issued by companies listed on the ASX or other eligible entities. In addition, eligible bonds must have amounts outstanding of at least $250 million and a term to maturity ('TTM') of between 5.25 to 10.25 years.

Eligible bonds are ranked by yield above benchmark (being a Commonwealth Government bond of similar maturity), with up to a maximum of 35 bonds selected, with each bond assigned an equal weight as at each rebalance date. To aid with issuer diversification, no single issuer shall have a weight in excess of 7% at each rebalance date.

By selecting bonds based upon expected returns rather than debt outstanding, the Index methodology seeks to avoid shortcomings of traditional debt-weighted indices and provide relatively higher returns.

About the Index

The index sponsor is Solactive AG (Solactive'), a leading global provider of index solutions. As of March 2018, Solactive served approximately 400 international clients, with over US$ 100 billion invested in products linked to indices calculated by the company. Solactive is headquartered in Frankfurt.

The Index provides exposure to Australian-dollar denominated fixed rate investment-grade bonds, excluding sovereigns, with maturities greater than 5 years.

The index constituents will comprise bonds issued by companies and other entities listed on the ASX or issued by APRA regulated entities, or bonds that are otherwise eligible instruments under the AQUA Rules.