The Fund seeks to achieve its objective by tracking the performance of the FTSE EPRA Nareit Developed ex-Australia Rental AUD Hedged Net Tax Index (referred to in this section 11 of the PDS as the Index).

The Fund aims to provide investors with the performance of an index, before fees and expenses (including the cost of hedging).
The index is designed to measure the AUD hedged performance of global developed market real estate securities.

Benefits of iShares

iShares ETFs are managed funds listed or quoted on exchanges (including ASX) providing you with the opportunity to gain exposure to a diversified portfolio of assets in a single transaction.

The significant benefits of investing in the Funds include:

• low cost access to diversified portfolios of international shares;

• access to market capitalisation weighted, minimum volatility and multiple-factor exposures; and

• currency hedged options, to seek to minimise the impact of Australian dollar volatility on investor returns.

Other benefits of investing in iShares ETFs generally include:

• Diversification: In contrast to a direct investment in a single company or bond, an iShares ETF provides, as far as possible and practicable, exposure to all of the securities or instruments within the index that the particular iShares ETF seeks to track.

• Access global markets: iShares ETFs let you achieve international diversification by investing in overseas equity and bond markets. With iShares ETFs you can gain exposure by asset class, market capitalisation, country and sector.

• Liquidity and transparency: Each iShares ETF seeks investment results that correspond generally to the performance (before fees and expenses) of a particular index. As a traded security, an iShares ETF enables you to enter and exit your holding on the ASX. You can easily track performance and trade during ASX trading hours (subject to ASX rules).

• Managing risk: Investing in an iShares ETF can assist you in establishing a portfolio appropriate to your investment needs and risk profile.

• Lower cost: As each iShares ETF is passively managed and designed to track the performance of a particular index, the expenses of managing an iShares ETF are generally lower compared to other forms of retail managed funds. However, brokerage or adviser fees may still apply when buying or selling units of an iShares ETF.

• Receipt of income: You will generally receive income from your investment in the form of distributions. Distributions may include dividends, coupons and other income. There may be years in which no distributions are made.

• Accessibility: iShares ETFs can offer a cost-effective way to gain exposure to a diversified portfolio of securities. They can be less costly than purchasing a large number of individual securities as there are less trading costs and they offer lower thresholds than an investor might otherwise be able to afford.

This product is likely to be appropriate for a consumer:
► who is seeking capital growth and/or income distribution
► using the product for a core component of their portfolio
or less
► with a minimum investment timeframe of 5 years, and
► with a high to very high risk/return profile.

The Index aims to measure the AUD hedged performance of rental revenue generating real estate stocks across global developed markets
(excluding Australia). Constituents are drawn from the FTSE Developed All Cap Ex Australia Index and must fall under the following Industry
Classification Benchmark (ICB) classifications to be eligible for Index inclusion:

ICB Industry Classification:
► Real Estate

ICB Subsector classification:
► Home Construction
► Storage Facilities
► Closed End Investments (if the majority of revenue is
derived from Real Estate activities)
► Computer Services (if the majority of the company’s revenue
comes from owning or operating a Data Centre business)
Eligible securities must have derived, in the previous full financial year, at least 75% of their total EBITDA from relevant real estate activities. 

Relevant real estate activities are defined as the ownership, trading and development of income-producing real estate. Existing constituents that drop below 75% (but remain at 65% or above) will have a further year to meet the 75% threshold. Constituents that report less than 65% of their total EBITDA from relevant real estate activities will be removed without the additional one year grace period.
Constituents must also be classified as Rental in order to be included in the Index. A company will be classified as Rental if the EBITDA or revenue from properties is greater than or equal to 70% of the total EBITDA or revenue both years individually of a two year period.

The Index rebalances quarterly in March, June, September and December. The Index may undergo periodic unscheduled rebalances at other times. Refer to the section of this PDS titled “Additional information about the Index” for further information.

How we invest your money:

The Index aims to measure the AUD hedged performance of rental revenue generating real estate stocks across global developed markets (excluding Australia). Constituents are drawn from the FTSE Developed All Cap Ex Australia Index and must fall under the following Industry Classification Benchmark (ICB) classifications to be eligible for Index inclusion:

ICB Industry Classification:
► Real Estate
ICB Subsector classification:
► Home Construction
► Storage Facilities
► Closed End Investments (if the majority of revenue is
derived from Real Estate activities)
► Computer Services (if the majority of the company’s revenue
comes from owning or operating a Data Centre business)

Eligible securities must have derived, in the previous full financial year, at least 75% of their total EBITDA from relevant real estate activities.

Relevant real estate activities are defined as the ownership, trading and development of income-producing real estate. Existing constituents that drop below 75% (but remain at 65% or above) will have a further year to meet the 75% threshold. Constituents that report less than 65% of their total EBITDA from relevant real estate activities will be removed without the additional one year grace period.

Constituents must also be classified as Rental in order to be included in the Index. A company will be classified as Rental if the EBITDA or revenue from properties is greater than or equal to 70% of the total EBITDA or revenue both years individually of a two year period.

The Index rebalances quarterly in March, June, September and
December. The Index may undergo periodic unscheduled rebalances at other times. Refer to the section of this PDS titled “Additional information about the Index” for further information.