ANZ ETFS S&P/ASX 300 HIGH YIELD PLUS ETF. (ASX Code: ZYAU)

ANZ ETFS S&P/ASX 300

HIGH YIELD PLUS ETF

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Introducing a suite of innovative exchange traded

funds (ETFs) designed for Australian investors by

ANZ ETFS, a unique collaboration between one of

Australia’s leading banks and a specialist global

provider of exchange traded products.

Geared toward investors who seek building blocks for a diverse portfolio, these new ETFs are a cost effective, reliable and transparent way to access investment opportunities that are normally hard to reach, including global equities, commodities and FX investments.

Reliable and transparent

Traded on the Australian Securities Exchange (ASX), ETFs are registered managed investment schemes which are regulated by the Australian Securities and Investments Commission (ASIC).

And because they are publicly listed, investors have access to live intra-day pricing, transparent performance and daily net asset values (NAV) of each ETF. With real-time valuations of their holding, investors can enter or exit the funds at any time throughout the trading day at a known price.

INVESTMENT BUILDING

BLOCKS FOR A

• High income distribution

ZYAU aims to distribute higher dividends than S&P/ASX 300. The current dividend yield of the benchmark is around 5%*.

• Cost effective

At just 0.35% per annum, ZYAU is a cost effective way to access the market compared to active funds.

• Well-diversified

To achieve high yield while retaining balanced exposure, each stock is capped at 10% of the index weight.

• First Australian ETF to capture

buyback yield

Buyback is an alternative form of yield as the company returns cash to its shareholders. Buybacks also signal the management team’s confidence in a company’s outlook.

• Seeks sustainable yield

To deliver both capital gain and income, ZYAU screens the high yield stocks with liquidity factor, dividend growth and free cash flows.

• Potential enhanced yield

ZYAU weights the constituents by yield adjusted market cap, potentially further enhancing the total yield of the portfolio. • Good liquidity

ZYAU invests in liquid stocks on the Australian Securities Exchange (ASX). • Easy to access

The ETF is traded on the ASX like shares throughout the day.

• Transparent

The portfolio, costs and valuation are publicly available.

* There is no guarantee that a Fund will make any income or that this will be distributed to investors.

KEY BENEFITS

THE EXCHANGE TRADED FUND

THAT REDEFINES YIELD

WHAT IS THE ANZ ETFS S&P/ASX

300 HIGH YIELD PLUS ETF?

The ANZ ETFS S&P/ASX 300 High Yield Plus ETF (ASX Code: ZYAU) aims to provide investors with a return higher than the performance of the S&P/ASX 300.

It invests in the 40 stocks from the S&P/ASX 300 with the highest shareholder yield, which is a combination of common dividends and common share buybacks.

In order to achieve sustainable performance, the eligible stocks are screened for liquidity, dividend growth and free cash flows. As a result, ZYAU aims to provide a defensive return from high yielding stocks and a cyclical return from buyback companies.

ZYAU can be traded by investors on the ASX, just like a share and is settled and held in normal brokerage accounts.

AT A GLANCE

ZYAU ANZ ETFS S&P/ASX

High Yield Plus ETF

Benchmark S&P/ASX 300 Shareholder Yield Index

Management Fee 0.35%

STRONG HISTORICAL PERFORMANCE

RISK FACTORS

The following are just some of the risk factors which should be carefully considered by prospective investors before deciding whether to invest in the units.

Risks in relation to an index

Past performance is not an indication of future performance and the investment performance of the units could be volatile. An investment in the units involves a significant degree of risk.

Although the Index methodology is designed to meet the objective of generating returns from higher yielding securities within the investment parameters, there is no guarantee the Index will meet this objective. Investors should form their own view on the Index methodology and the capacity of the Index to meet the stated objective.

Risks in relation to the Fund

An investment in an Index via a Fund will expose investors to risks inherent in holding the exposure via a unit: Market Risk

ETFs aim to replicate the price movements of their underlying benchmark or asset so their performance is dependent on the performance of the components of the underlying index.

Tax

As with the majority of investments, ETFs will normally incur some form of taxation. Each investor should obtain independent tax advice.

Costs

All ETFs incur costs, whether internal costs (related to the product) or external costs (incurred in trading the product). Tracking difference

The structure and cost of an ETF means it may not track its underlying exactly. There is no guarantee that an ETF will produce returns generated by an underlying index. Liquidity Risk

Although the Units will be quoted on the ASX there is no guarantee that there will be a liquid market for the Units. Furthermore, in certain circumstances the ASX may suspend trading of the Units or delist a Fund. There are also certain circumstances where the Responsible Entity may limit, reject, scale or delay redemptions.

This is not an exhaustive list of risks in the relation to an investment in Units. Prospective investors should read the Product Disclosure Statement in relation to the risks associated with an investment in Units and consider the specific and general risks of an investment in Units.

Prospective investors should also consult with their financial adviser prior to making any investment.

As the strategy of the benchmark implements quality screening and considers both defensive and cyclical income, it has historically delivered strong outperformance.

Source: Bloomberg; returns in AUD

3 200 180 160 140 120 100 80 60 40 20 0 D EC 0 9 JU N 10 D EC 10 JU N 11 D EC 11 JU N 12 D EC 12 JU N 13 D EC 13 JU N 14 D EC 14

S&P/ASX 300 Shareholder Yield S&P/ASX Small Ordinaries S&P/ASX 300

INDEX METHODOLOGY

The S&P/ASX Index Committee ranks the filtered stocks by shareholder yield; selects the top 40 stocks

40 highest yielding stocks are weighted by shareholder yield adjusted market cap; the weight of each stock within the index is capped at 10%

Rebalance semi-annually

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dividends and common share buybacks for each of the stocks in the S&P/ASX 300 in the last year, divided by the total free float market capitalisation at the beginning of the buyback period.

S&P/ASX 300 CONSTITUENTS

Liquidity

3 month Average Daily Value Traded no less than $1 million AUD

Free Cash Flow to Equity

No less than the common dividends and common share buybacks in the past 1 year Positive dividend growth

1 yr Dividend Per Share Growth Rate >= 0

FILTER

RANK

CAP

HOW SHARE BUYBACKS

BOOST STOCK PERFORMANCE

A share buyback, or share repurchase, is when a company buys back its shares from the market and returns cash to the shareholder. As a result, the number of shares outstanding is reduced. The benefits of a share buyback include:

• Increased shareholder value Share repurchase by the company reduces the shares outstanding leading to higher EPS (earning per share).

• Increase in demand

Higher EPS often signals that the shares are undervalued and therefore leads to increase in demand for the shares. • Excess cash

Companies buying back their shares with excess cash can be a signal that the company has a strong cash position. • Confidence in the company

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DISCLAIMER

This document is communicated by ANZ ETFS Management (AUS) Limited (“ANZ ETFS”) (Australian Financial Services Licence Number 466778). This document may not be reproduced, distributed or published by any recipient for any purpose. Under no circumstances is this document to be used or considered as an offer to sell, or a solicitation of an offer to buy, any securities, investments or other financial instruments and any investments should only be made on the basis of the relevant product disclosure statement which should be considered by any potential investor including any risks identified therein. This document does not take into account your personal needs and financial circumstances. You should seek independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Although we use reasonable efforts to obtain reliable, comprehensive information, we make no representation and give no warranty that it is accurate or complete.

Investments in any product issued by ANZ ETFS are not deposits with, or liabilities of, Australia and New Zealand Banking Group Limited (“ANZ”) or any member of the ANZ Group and are subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither ANZ, ANZ ETFS, ETF Securities Limited nor any other member of the ANZ Group or ETF Securities Group guarantees the performance of any products issued by ANZ ETFS or the repayment of capital or any particular rate of return therefrom.

The value or return of an investment will fluctuate and investor may lose some or all of their investment. Past performance is not an indication of future performance.

TALK TO US TODAY ABOUT

DIVERSIFYING YOUR PORTFOLIO

A N ZE TF S02 A N Z E TFS M an ag em en t ( A U S) L im ite d A CN 1 50 4 33 8 28 04 /15 3 000 6 Visit www.anzetfs.com Call +61 2 8937 7245 Email [email protected]