Exclusionary Screen change

Pendal Sustainable International Share Fund (APIR: BTA0568AU)

(the “Fund”)

The following information contains an important update to the Fund’s exclusionary screens disclosed in the Information Memorandum dated 10 April 2025 for the Pendal Sustainable International Share Fund (IM) and should be read in conjunction with the IM.

Effective from 30 June 2025, the Fund will introduce an additional exclusionary screen and not invest in companies directly involved in the supply of goods or services specifically related to controversial weapons.

In our view, this change ensures that the Fund remains true to label and is more closely aligned with investor expectations in relation to responsible investment funds. 

Exclusionary Screens Effective 30 June 2025

Effective 30 June 2025, the section ‘Exclusionary Screens’ in the Information Memorandum is replaced with the following:

Exclusionary Screens

The Fund applies exclusionary screens which aim to avoid exposure to companies with core business activities that Pendal considers to negatively impact the environment and/or society.⁴

The Fund will not invest in companies directly involved in the following activities:

• extract or explore for fossil fuels (specifically, coal, oil and natural gas); or

• produce tobacco (including e-cigarettes and inhalers); or

• manufacture controversial weapons (such as cluster munitions, landmines, biological or chemical weapons, nuclear weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, non-detectable fragments weapons and white phosphorous weapons); or

• supply of good or services specifically related to controversial weapons.

The Fund will also not invest in companies directly involved in any of the following activities, where such activities account for 10% or more of their gross revenue:

• fossil fuel-based power generation, or fossil fuel distribution or refinement (coal, oil and natural gas)*;

• the production of alcoholic beverages;

• manufacture, ownership or operation of gambling facilities, gaming services or other forms of wagering;

• manufacture of non-controversial weapons or armaments;

• manufacture or distribution of pornography; or

• uranium mining for the purpose of nuclear power generation.

*Companies with a climate transition plan may be exempted from this exclusion, provided that they have in place a Paris Agreement aligned transition plan and produce climate-related financial disclosures annually, which in both cases we consider credible.

Exclusionary screens are not applied to cash or derivatives. The use of derivatives may result in the Fund having indirect exposure to the excluded companies.

All reasonable care has been taken by Pendal to implement the Fund’s exclusionary screens to meet the criteria described above. To determine whether an investment is subject to the Fund’s exclusionary screens, Pendal relies on internal and supplementary external research, believed to be accurate. However, as the nature and conduct of businesses may change over time, and publicly available financial or other information is not always comprehensive or up to date, we do not guarantee that the Fund’s investments will meet all of the Fund’s exclusionary screen criteria at all times.

Pendal reviews companies subject to the exclusionary screens monthly and monitors the Fund’s compliance with its investment guidelines (including the exclusionary screens) daily.

If we determine that an investment no longer meets our exclusionary screen criteria, we will divest the holding (usually within six months) having regard to the interests of investors. The time it takes to sell an investment depends on factors including, but not limited to, the size and liquidity of the investment (which may have an impact on the Fund’s performance returns), and the time it takes for Pendal to seek and assess suitable replacement investments that meet the Fund’s exclusionary screens and sustainability or ESG criteria.