BEAR seeks to generate returns that are negatively correlated to the returns of the Australian sharemarket

Fund Objective

BEAR seeks to generate returns that are negatively correlated to the returns of the Australian share market. The Fund expects to generate a positive return when the S&P/ASX Accumulation 200 Index falls (and a negative return when the index rises).

The BetaShares Bear Funds are designed to provide returns that are negatively correlated with the Australian or U.S. share market, and so may be used to help protect against, or profit from, share market declines. It is important for investors in a Bear Fund to understand its features, including how it is priced, and that it targets a return over a one-day period only. Additionally, BetaShares strongly recommends investors review the relevant PDS and consider the risks associated with an investment in the relevant Bear Fund. These include the risk of negatively correlated returns, market risk, futures risk and gearing risk (in the case of BBOZ/BBUS). Investors should also check the BetaShares website for details of the Fund’s historical performance, as well as the current portfolio exposure, to ensure that the Fund continues to meet their investment objectives.

Strategy

BEAR is an ‘inverse ETF’. It invests in cash and cash equivalents and sells equity index futures contracts (i.e. ASX SPI 200 futures) to obtain its exposure. Selling these futures can typically be expected to generate a positive return when the S&P/ASX Accumulation 200 Index declines on a given day, and a negative return when the Index increases. A 1% fall in the Australian share market on a given day can generally be expected to deliver a 0.9% to 1.1% increase in the value of BEAR (and vice versa).

BetaShares Funds can be bought or sold during the trading day on the ASX, and trade like shares. ASX CODE BEAR BLOOMBERG CODE BEAR AU IRESS CODE BEAR.AXW IRESS INAV CODE BEARINAV.ETF DISTRIBUTIONS ANNUAL MGT FEE 1.19% P.A. EXPENSES CAPPED AT 0.19% P.A. INDIRECT COSTS 0.10% P.A. FUND INCEPTION 6 JUL 12 BENCHMARK S&P/ASX ACCUMULATION 200.

Portfolio

BetaShares offers four series of model portfolios, each of which seeks to achieve capital growth and income streams through a careful blending of asset classes, including Australian and international equities, bonds, cash and commodities. The models are constructed using ETFs and other exchange-traded products, resulting in institutional-quality portfolios that are cost-effective, highly diversified, transparent, and simple to explain to clients.

People

Adam O’Connor is a member of the BetaShares Distribution team responsible for supporting Institutional and Intermediary Broker and Adviser channels. Prior to joining BetaShares, Adam worked in stockbroking and advisory with Bell Potter Securities. Adam holds a Bachelor of Laws with Honours and a Bachelor of Business (Finance) from the Queensland University of Technology. Adam also holds a Diploma of Stockbroking from Deakin University and is an accredited Financial Adviser in Securities and Managed Investments and Superannuation. Brendan is responsible for growing and servicing BetaShares Adviser business clients across Western Australia. In this role, Brendan is focused on educating advisers about the role and benefits of ETF’s and SMA’s in client portfolios and sharing updates on the expanding range of strategies available across the BetaShares product suite.

Alex is a member of the BetaShares Distribution team, responsible for supporting Institutional and Intermediary Broker channels. Alexander is a member of the BetaShares Distribution team, responsible for client inquiries and supporting the sales team. Alistair is a member of the BetaShares Distribution team, responsible for supporting Institutional and Intermediary Broker channels, as well as supporting the firm’s capital markets activities. Benjamin is a member of the BetaShares Distribution team, responsible for assisting with client inquiries. Craig is responsible for growing and servicing BetaShares Adviser business clients across Queensland. In this role, Craig is focused on educating advisers about the role and benefits of ETF’s in client portfolios, and sharing updates on the expanding range of strategies available across the BetaShares product suite.

Performance

Past performance is not an indicator of future performance. Returns are calculated in Australian dollars using net asset value per unit at the start and end of the specified period and do not reflect brokerage or the bid ask spread that investor incur when buying and selling units on the ASX. Returns are after fund management costs, assume reinvestment of any distributions and do not take into account tax paid as an investor in the Fund. Returns for periods longer than one year are annualised. Current performance may be higher or lower than the performance shown.

About Fund

(Source: Morningstar)

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