Benefits of investing in the BetaShares Japan ETF - Currency Hedged

Portfolio diversification

• Diversified exposure to the Japanese sharemarket, which includes sectors that are under-represented in the Australian sharemarket.

Reduced currency risk

• HJPN's yen exposure is currency hedged, reducing the effect of currency movements on portfolio performance.

Access globally competitive stocks

• HJPN's portfolio includes only the largest Japanese companies that generate a substantial portion of their revenues from outside Japan.

Cost effective

• HJPN's management cost of 0.56% p.a., (or $56 for every $10,000 invested) is lower than that of traditional active managers focusing on Japanese equities.

About the Fund

The BetaShares Japan ETF - Currency Hedged (ASX: HJPN) provides exposure to a diversified portfolio of globally competitive Japanese companies, hedged into Australian Dollars.

Investment objective

The investment objective of the BetaShares Japan ETF - Currency Hedged is to provide an investment return that aims to track the performance of the S&P Japan Exporters Hedged AUD Index (the "Index), before taking into account fees and expenses.

The Index is designed to measure the performance of listed companies domiciled in Japan with greater than 50% revenue exposure to regions outside Japan, while hedging currency risk for Australian investors.

How to use this ETF in your portfolio

1. Core component of a global equities allocation
2. Tactical exposure to Japanese equities

How we invest your money

The Fund will seek to achieve the investment objective by adopting a "full replication strategy. See section 2.1.2 of the PDS for further information.

Further information about the Index

The Index provider is a subsidiary of S&P Dow Jones Indices LLC ("Index Provider).

To be eligible for initial inclusion in the Index, a security must meet certain eligibility criteria, including:

• be a constituent of the S&P Japan Large Midcap Index;

• be domiciled in Japan;

• have a six-month median daily value traded of 250m JPY (175m JPY for existing constituents at each rebalance); and

• derive more than 50% of their revenue from countries outside of Japan (with a buffer of 45% for existing constituents at each rebalance).

Index constituents are weighted by float adjusted market capitalisation and subject to a single security cap of 10%.

The Index will hold a maximum of 150 constituents.

The Index is rebalanced on a semi-annual basis, after the close on the third Friday of May and November. New securities are added to the Index only at the semi-annual rebalance.

The Index is a net total return index, which means that it reinvests cash dividends on the relevant ex-dividend date (the date on which the relevant shares no longer come attached with the right to receive the declared dividend) and adjusts for an Index security's country of incorporation withholding rate.

The nature and method of calculation of the Index may change from time to time.