BETASHARES LEGG MASON ACTIVE ETFS

BROADEN YOUR HORIZONS WITH FOUR ACTIVE ETFS

BetaShares Legg Mason Active ETF Range

About Martin Currie

EMMG, EINC and RINC are managed by wholly-owned Legg Mason investment affiliate, Martin Currie^. As global active equity specialists, Martin Currie craft high-conviction portfolios which aim to deliver attractive and consistent risk-adjusted returns for clients.

OUR INVESTMENT EXPERTS

About Western Asset

BNDS is managed by wholly-owned Legg Mason investment affiliate Western Asset, one of the world’s leading dedicated fixed income managers. Western Asset is recognised for an approach emphasising team collaboration and intensive proprietary research, supported by robust risk management.

About Legg Mason

Legg Mason manages over A$1.1 trillion* globally and is one of the world’s largest and most experienced asset managers operating a highly differentiated business that owns nine independent specialist investment affiliates spanning all major asset classes.

About BetaShares

BetaShares is one of Australia’s leading and most innovative managers of exchange traded funds with over A$8.8 billion* in assets under management and the broadest range of exchange traded solutions available on the market.

* As at 30 September 2019. ^EINC and RINC are managed by Martin Currie Australia, a division within Legg Mason Australia. EMMG is managed by Martin Currie Investment Management Limited (“Martin Currie”), an affiliate of Legg Mason, headquartered in Edinburgh, Scotland.

Finding the right solution for your income needs has never been easier. Legg Mason’s highly-rated active management comes together with BetaShares’ expertise in exchange traded funds to offer four new Active ETFs: BNDS, EMMG, EINC and RINC.

You can access the BetaShares Legg Mason range of Active ETFs via a simple trade on the ASX, just like any share.

BETASHARES LEGG MASON ACTIVE ETF RANGE

ASX: BNDS ASX: EINC ASX: RINCASX: EMMG

Contact us for more information about the BetaShares Legg Mason range of Active ETFs

www.leggmason.com.au/active-etfs1800 679 541

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BetaShares Legg Mason Active ETF Range

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1 Source: BetaShares 30 September 2019. BNDS commenced in November 2018.2 Professional Planner | Zenith Fund Award for Australian Fixed Income 2016, 2017 and 2018, Money Management | Lonsec Fund Manager of the Year, Australian Fixed Income (May 2018) and Morningstar Australia’s Fund Manager of the Year 2018: Fixed Interest Category, Australia.

Experienced team with award winning expertiseThe Fund’s investment team has won multiple awards in recent years2 and has also managed the highly successful unlisted Legg Mason Western Asset Australian Bond Fund for more than 20 years using the same investment strategy as BNDS.

The BetaShares Legg Mason Australian Bond Fund (managed fund) (ASX: BNDS) is managed by Legg Mason’s multi award-winning fixed income specialist, Western Asset. BNDS is designed to provide efficient access to an actively managed and broadly diversified portfolio of Australian fixed income securities.

Invests across the full fixed income spectrumMaximises the investment opportunities from Australian fixed income by investing in government, semi-government, supranational and corporate bonds and other fixed income securities.

Embraces bond market developmentAustralian credit markets have recently expanded thanks to long-dated issues from many large corporations. BNDS actively invests in this deeper opportunity set aiming for diversification and greater portfolio returns.

Strong risk management focusDisciplined portfolio construction maintains a key focus on managing interest rate risk by limiting duration to one year away from the benchmark.

ACTIVATE YOUR FIXED INCOME

Corporate - Investment GradeSemi-governmentCommonwealth GovernmentSupranationalAsset Backed MortgageCash

BetaShares Legg Mason Australian Bond Fund (managed fund) (ASX: BNDS) - Sector allocation - as at 30 September 20191

2.2% 1.3%

20.4%

41.4%

18.8%

15.9%

The BetaShares Legg Mason Emerging Markets Fund (managed fund) (ASX: EMMG), managed by Legg Mason affiliate Martin Currie, is a new and effective way to tap into the growth opportunity emerging markets offer. The Fund is an actively managed, high-conviction portfolio.

Invest in the world’s fastest-growing economies

Local (not multi-national) company focus

BetaShares Legg Mason Emerging Markets Fund (managed fund) ASX: EMMG3

Active stock selection with embedded ESG

Highly experienced investment team

Emerging markets are already the largest contributor to world economic production (GDP) and continue to grow at a much faster rate than the more mature developed economies. Their growth is driven by their large populations and strong secular trends that include attractive demographics (young, increasingly educated and growing middle classes), urbanisation, disruptive technologies and innovation.

Increasing corporate diversity and significant barriers to entry across emerging markets mean local emerging market companies offer better potential for diversification both regionally and at the corporate level.

Compared with the majority of developed markets, emerging markets exhibit a significant amount of informational and structural inefficiency. In this environment, an active manager can potentially add considerable value, with greater scope for identifying mispriced opportunities through proprietary research and fundamental company analysis.

The Martin Currie emerging markets team has a wealth of investment and emerging markets experience. The team’s collegiate culture encourages robust challenge and debate in search of the best investment opportunities.

DIVERSIFY WITH EMERGING MARKETS

3 Source: Martin Currie as at 30 September 2019. Country exposure is reported by country of listing. As such, stocks offering exposure to Emerging Markets may appear under countries outside the Emerging Markets asset class. Further information is available upon request.

Financials Information Technology Consumer Discretionary Communication Services Materials Energy Consumer Staples Utilities Cash Health Care

China India Korea Taiwan Brazil Russia Peru IndonesiaHungaryHong KongOther

Sector allocation (%) Country allocation (%)

2.42.1 2.1 1.7

29.7

24.115.7

8.0

7.3

6.8

29.1

15.3

15.18.4

5.9

3.83.3

3.1

2.92.5 10.7

5 As at 30 September 2019. Yield forecast is calculated using the weighted average of broker consensus forecasts of each portfolio holding and research conducted by Legg Mason Australia, and excludes the Fund’s fees and costs. Franking credit benefit assumes a zero tax rate. It is not to be interpreted as the offset achieved by unitholders during this period. Actual yield may differ due to various factors, including changes in the prices of the underlying securities and the number of units on issue. Neither the yield forecast nor past performance is a guarantee of future results. Not all investors will be able to benefit from the full value of franking credits. BetaShares Capital Ltd (ABN 78 139 566 868 AFSL 341181) (BetaShares) is the issuer and responsible entity of the BetaShares Legg Mason Funds. BetaShares has appointed Legg Mason Asset Management Australia Ltd (ABN 76 004 835 849 AFSL 240827) (Legg Mason Australia) as investment manager for the Funds. Legg Mason Australia is part of the Global Legg Mason Inc. group. Martin Currie Australia, a division within Legg Mason Australia, provides the investment management services for the BetaShares Legg Mason Equity Income Fund (managed fund), and the BetaShares Legg Mason Real Income Fund (managed fund). Legg Mason Australia has appointed Western Asset Investment Management, an affiliate of Legg Mason Australia, to provide the investment management services for BetaShares Legg Mason Australian Bond Fund (managed fund). Legg Mason Australia has appointed Martin Currie Investment Management Limited, an affiliate of Legg Mason Australia, to provide the investment management services for the BetaShares Legg Mason Emerging Markets Fund (managed fund). Before making an investment decision you should read the Product Disclosure Statement (PDS) for the Fund carefully and consider, with or without the assistance of a financial advisor, whether such an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. The PDS is available and can be obtained by contacting BetaShares on 1300 487 577 or Legg Mason Australia on 1800 679 541or at www.betashares.com.au or www.leggmason.com.au. This information does not take into account the investment objectives, financial objectives or particular needs of any particular person. Neither BetaShares, Legg Mason Australia, nor any of their related parties guarantees any performance or the return of capital invested. Past performance is not necessarily indicative of future performance. Investments are subject to risks, including, but not limited to, possible delays in payments and loss of income or capital invested. J19039_Brochure_Active ETF_Range_Aug 2019_Australia_v4

Investing involves risk. The value of an investment and income distributions can go down as well as up. Before making an investment decision you should consider the relevant PDS and your particular circumstances, including your tolerance for risk, and obtain financial advice.

BetaShares Legg Mason Active ETF Range

6 Source: Martin Currie Australia as at 30 September 2019, RBA, ABS. Next 12 months expected income is calculated using the weighted average of broker consensus forecast dividends per share (DPS) of each portfolio holding and is not guaranteed. As RINC commenced in February 2018, the performance of the unlisted Legg Mason Martin Currie Real Income Fund is shown above to illustrate how a comparable fund managed by Martin Currie Australia using the same strategy has performed in the past over longer periods. Excludes net realised capital gains. Historic performance of the unlisted fund is not a reliable indicator of the performance of RINC. The investment vehicles shown may have different risk profiles hence a direct comparison may not be appropriate. Equities have higher risk than cash deposits.

The BetaShares Legg Mason Real Income Fund (managed fund) (ASX: RINC), managed by Martin Currie Australia, invests in listed companies that own ‘hard’ physical assets, such as property, utilities and infrastructure (e.g. A-REITs, toll roads, airports, electricity and gas grids), that deliver strong dividend income from reliable revenue streams.

Sustainable income growing above inflationTargets income growth that exceeds the rise in the cost of living. This is achieved by owning securities that can grow revenue and profit over time.

Focus on high-quality stocksActive management means the Fund aims to have a bias towards higher quality real asset companies, while avoiding those with low quality (or high-risk) attributes.

Australian focusedIncome is delivered from underlying cash flows from real assets with the focus on Australian based investment.

Lower concentration risk than A-REITsBeing benchmark-unaware means the Fund offers highly diversified exposure to listed real assets and aims to avoid the sector and stock concentration issues associated with the A-REIT Index.

REAL INCOME FROM REAL ASSETS

5.7%Real Income Strategy income since inception versus

inflation (CPI) and term deposits 6

Actual last 12 month- Real Income

Forecast next 12 month - Real Income

CPI 6 month term deposit rate

Next 12 months forecast franked yield 5

The BetaShares Legg Mason Equity Income Fund (managed fund) (ASX: EINC), managed by Martin Currie Australia, is an efficient way to invest in an actively managed portfolio of high-yielding, high quality Australian shares.

High yielding, quality companiesThe Fund aims to deliver a high and growing income by investing in high-quality Australian companies.

Strong focus on growing the income stream

Simple investment strategy, tax efficient

EINC invests only in high quality shares and does not use derivatives to generate income. The Fund seeks to maximise after tax income for zero rate taxpayers.

HIGH INCOME THAT GROWS WITH YOU

Lower volatilityThe Fund targets lower volatility than the S&P/ASX 200 Index through active stock selection and less concentrated stock and sector exposures.

BetaShares Legg Mason Equity Income Fund (managed fund) - Distribution yield comparison (before fees) 12 months to September 2019 4

8%

7%

6%

5%

4%

3%

2%

1%

0

Dist

ribut

ion

Yiel

d (%

)

BetaShares Legg Mason Equity Income Fund

(managed fund)

5.80%

S&P/ASX 200 Franked Yield

Best Term Deposit

5.80%

1.30%

Distribution Franking

6.3%Next 12 months forecast franked yield 5

4 Source: Martin Currie Australia as at 30 September 2019. EINC commenced in February 2018. Excludes net realised capital gains. Historic performance is not a reliable indicator of future performance. The investment vehicles shown may have different risk profiles hence a direct comparison may not be appropriate. Equities have higher risk than cash deposits.

5.5%

Active selection of quality companies that have the potential to provide sustainable, long term dividend growth.

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