We have updated and reissued the Product Disclosure Statement (PDS) for the Pendal Horizon Sustainable Australian Share Fund (the Fund) effective on and from Thursday, 20 February 2025.
The following is a summary of the key changes reflected in the PDS for the Fund.
Labour, environmental, social and ethical (ESG) considerations
We have enhanced our ESG disclosure to describe the Fund’s sustainability objective, the sustainable themes Pendal focuses on when managing the Fund and the sustainability assessment framework employed by the Fund.
The way the Fund is managed has not changed because of the enhancements in sustainability disclosure.
Exclusionary Screens
We have taken this opportunity to review the Fund’s exclusionary screens to assure they align with investors’ expectations. Effective 20 February 2025, the Fund will implement an exclusionary screen for companies that directly engage in live animal export.
We have also clarified the Fund’s exclusionary screens are not applied to cash or derivatives and the use of derivatives may result in the Fund having indirect exposure to the excluded companies or issuers.
Updates to significant risks disclosure
The Fund’s investment strategy involves specific risks.
We have updated the significant risks disclosure applicable to the Fund to ensure that our disclosure continues to align with the nature and risk profile of the Fund and the current economic and operating environment.
Updates to ongoing annual fees and costs disclosure
The estimated ongoing annual fees and costs for the Fund have been updated to reflect financial year 2024 fees and costs. These include changes to estimated management costs and estimated transaction costs.
We now also disclose the maximum management fee we are entitled to charge under the Fund’s constitution.
Updates to restrictions on withdrawals
We have updated the disclosure on restrictions on withdrawals to align closer to what is in the Fund’s constitution.
Additional information on how to apply for direct investors
We have provided additional information for non-advised investors (i.e. investors without a financial adviser) investing directly in the Fund who may also be required to complete a series of questions as part of their online Application, to assist us in understanding whether they are likely to be within the target market for the Fund.
Updates to our complaints handling process
We have provided additional details about our complaints handling process and the Australian Financial Complaints Authority.
Effective 14 February 2025 the buy-sell spreads for the following funds have decreased.
| Fund Name | Old (%) | New (%) | Total Change (%) | ||||
| Buy | Sell | Total | Buy | Sell | Total | Total | |
| Pendal Australian Equity Fund | 0.25% | 0.25% | 0.50% | 0.22% | 0.22% | 0.44% | –0.06% |
| Pendal Australian Long/Short Fund | 0.35% | 0.35% | 0.70% | 0.32% | 0.32% | 0.64% | -0.06% |
| Pendal Australian Share Fund | 0.25% | 0.25% | 0.50% | 0.22% | 0.22% | 0.44% | -0.06% |
| Pendal Focus Australian Equities Fund | 0.25% | 0.25% | 0.50% | 0.22% | 0.22% | 0.44% | -0.06% |
| Pendal Focus Australian Share Fund | 0.25% | 0.25% | 0.50% | 0.22% | 0.22% | 0.44% | -0.06% |
| Pendal Horizon Sustainable Australian Share Fund | 0.25% | 0.25% | 0.50% | 0.22% | 0.22% | 0.44% | -0.06% |
| Pendal Imputation Fund | 0.25% | 0.25% | 0.50% | 0.22% | 0.22% | 0.44% | -0.06% |
| Pendal MicroCap Opportunities Fund | 0.60% | 0.60% | 1.20% | 0.55% | 0.55% | 1.10% | -0.10% |
| Pendal Sustainable Australian Share Fund | 0.25% | 0.25% | 0.50% | 0.22% | 0.22% | 0.44% | -0.06% |
More about buy-sell spreads
The buy-sell spread is an additional cost to you and is generally incurred whenever you invest in or withdraw from a fund. The buy-sell spread is retained by the fund (it is not a fee paid to us) and represents a contribution to the transaction costs incurred by the fund such as brokerage and stamp duty, when the fund is purchasing and selling assets.
The buy-sell spread also reflects the market impact of buying and selling the underlying securities in the market. Importantly, the buy-sell spread helps to ensure different unit holders are being treated fairly by attributing the costs of trading securities to those unit holders who are buying and selling units in the fund.
Each Fund’s buy-sell spread will decrease to reflect a reduction in the Fund’s transaction costs.
As transaction costs may change depending on various factors such as market conditions and brokerage costs, buy-sell spreads may change. You should therefore review current buy-sell spread information before making a decision to invest or withdraw from a Fund.
For the latest buy-sell spread for each Fund, please refer to our website www.pendalgroup.com and click ‘Products’ and refer to the Important Information section.
We have updated and reissued the Product Disclosure Statements (PDSs) for the following classes of units in the Regnan Global Equity Impact Solutions Fund (the Fund), effective on and from Monday, 2 September 2024:
- Regnan Global Equity Impact Solutions Fund – Class R
- Regnan Global Equity Impact Solutions Fund – Class W
The following is a summary of the key changes to the PDSs.
Labour, Environmental, Social, Governance and Ethical (ESG) disclosure
We have enhanced our ESG disclosure to describe the Fund’s impact objective and the eight impact themes targeted by the Fund.
We have also provided clarification that the Fund may hold cash and may use derivatives from time to time and that exclusionary screens are not applied to the Fund’s investments in cash or derivatives. The use of derivatives may result in the Fund having indirect exposure to the excluded companies.
There has been no change to the Fund’s investment approach, or the exclusionary screens employed by the Fund.
Updates to significant risks disclosure
The Fund’s investment strategy involves specific risks.
We have updated the significant risks disclosure applicable to the Fund to ensure that our disclosure continues to align with the nature and risk profile of the Fund and the current economic and operating environment.
Updates to ongoing annual fees and costs disclosure
The estimated ongoing annual fees and costs for the Fund has been updated to reflect financial year 2024 fees and costs. These include changes to estimated management costs and estimated transaction costs.
We now also disclose the maximum management fee we are entitled to charge under the Fund’s constitution.
Updates to restrictions on withdrawals
We have updated the disclosure on restrictions on withdrawal to align closer to what is in each Fund’s constitution.
Additional information on how to apply for direct retail investors
We have provided additional information for non-advised retail investors (retail investors without a financial adviser) investing directly in Class R units of the Fund who may also be required to complete a series of questions as part of their online Application, to assist us in understanding whether they are likely to be within the target market for a Fund.
Updates to our complaints handling process
We have provided additional details about our complaints handling process and the Australian Financial Complaints Authority.
We have updated and reissued the Product Disclosure Statements (PDSs) for the following classes of units in the Pendal Global Select Fund (the Fund), effective on and from Friday, 28 June 2024:
- Pendal Global Select Fund – Class R
- Pendal Global Select Fund – Class W
- Pendal Global Select Fund – Class Z
The following is a summary of the key changes to the PDSs.
ESG disclosure
We have removed the Responsible Investment Association of Australasia (RIAA) certification symbol, as the Fund is no longer RIAA certified. We have also provided clarification that exclusionary screens are not applied to the Fund’s investments in cash or derivatives and that the use of derivatives may result in the Fund having indirect exposure to the excluded companies from time to time
There has been no change to the Fund’s investment approach, or the exclusionary screens employed by the Fund.
Updates to significant risks disclosure
The Fund’s investment strategy involves specific risks.
We have updated the significant risks disclosure applicable to the Fund to ensure that our disclosure continues to align with the nature and risk profile of the Fund and the current economic and operating environment.
Updates to ongoing annual fees and costs disclosure
The estimated ongoing annual fees and costs for the Fund has been updated to reflect financial year 2023 fees and costs. These include changes to estimated management costs and estimated transaction costs.
We now also disclose the maximum management fee we are entitled to charge under the Fund’s Constitution.
Additional information on how to apply for direct retail investors
We have provided additional information for non-advised retail investors (retail investors without a financial adviser) investing directly in Class R units of the Fund who may also be required to complete a series of questions as part of their online Application, to assist us in understanding whether they are likely to be within the target market for the Fund.
Updates to our complaints handling process
We have provided additional details about our complaints handling process and the Australian Financial Complaints Authority.
We have updated and reissued the Product Disclosure Statements (PDSs) for the following Pendal funds effective on and from Thursday, 6 June 2024:
- Pendal Australian Equity Fund
- Pendal Australian Share Fund
- Pendal Focus Australian Share Fund
- Pendal Government Bond Fund
- Pendal Imputation Fund
- Pendal MidCap Fund
- Pendal Monthly Income Plus Fund
- Pendal Property Investment Fund
- Pendal Property Securities Fund
- Pendal Short Term Income Securities Fund
- Pendal Smaller Companies Fund
(the Funds).
The following is a summary of the key changes reflected in the PDS for each Fund.
Updates to significant risks disclosure
Each Fund’s investment strategy involves specific risks.
We have updated the significant risks disclosure applicable to each Fund to ensure that our disclosure continues to align with the nature and risk profile of each Fund and the current economic and operating environment.
Updates to ongoing annual fees and costs disclosure
The estimated ongoing annual fees and costs for the Funds have been updated to reflect financial year 2023 fees and costs. These include changes to estimated management costs, estimated performance fees (where applicable) and estimated transaction costs.
We now also disclose the maximum management fee and performance fee (where applicable) we are entitled to charge under each Fund’s Constitution.
Additional information on how to apply for direct investors
We have provided additional information for non-advised investors (investors without a financial adviser) investing directly in each Fund who may also be required to complete a series of questions as part of their online Application, to assist us in understanding whether they are likely to be within the target market for the Fund.
Updates to our complaints handling process
We have provided additional details about our complaints handling process and the Australian Financial Complaints Authority.
Following a review of Perpetual Group’s multi asset capabilities, a decision has been made to combine the Perpetual and Pendal Multi Asset businesses to create one team, the Perpetual Multi Asset Strategies team. The new team will be led by Perpetual’s current Head of Multi Asset, Michael O’Dea.
Michael O’Dea has been appointed as the portfolio manager of the Pendal Multi Asset Funds with effect from 14 March 2024. Michael replaces Michael Blayney as the portfolio manager of these funds.
Why one team?
We are bringing together the Perpetual and Pendal multi asset teams as one enhanced team with greater scale and resources to support better client outcomes. This team will be uniquely placed to build investment solutions to meet emerging client needs by accessing the combined intellectual property and experience of both the Perpetual and Pendal multi asset teams.
Who forms part of the new team?
The new Perpetual Multi Asset Strategies team will consist of nine highly experienced investment professionals with average industry experience of 23 years. Please refer to the link here to view the new team profile.
As a result of the appointment of Michael O’Dea to lead the combined team, Michael Blayney will be leaving the organisation, however he will continue to support the new team in an advisory capacity over the next six months.
What does this mean for your investments?
There are no immediate changes to your investments as part of this announcement. The investment approach and asset allocation as stated in the applicable Fund’s product disclosure statement has not changed.
Pendal’s sustainable investment products will retain their sustainability approach.
Fees and buy and sell spreads for the Pendal Multi Asset Funds remain unchanged, as a result of the announcement.
The Pendal brand and names of the Pendal Multi Asset Funds remain.
What do you need to do?
No action is required. You will be able to continue to invest or withdraw in the same way, except for the Pendal Balanced Returns Fund where applications are no longer being accepted.[1]
If you have any questions about your investment or would like further information regarding the changes, please contact our Investor Service Team on 1300 346 821 (for Australian investors) or +612 9220 2499 (for overseas investors) from Monday to Friday, 8.00am to 5:30pm (Sydney time).
[1] For further details see the “Notice of Termination Pendal Balanced Returns Fund“, dated 13 March 2024.
The Pendal Focus Australian Share Fund’s (Fund) average performance fee for the last five financial years ending on 30 June 2022, disclosed in the Fund’s Product Disclosure Statement issued on 11 January 2023 was incorrectly stated as 0.09% p.a. of the assets of the Fund.
The correct average annual performance fee over that period is 0.14% p.a., a difference of 0.05%.
Based on the estimate of 0.14% p.a. for an investment of $50,000 in the Fund, the performance fee would be $70 ($50,000 * 0.14% p.a. = $70), and not $45 as stated in the PDS. Please note that this is an estimate based on historical performance for illustration purposes only and does not reflect actual fees which may be charged in the Fund.
There has been no change to the way performance fees are calculated and the correct fees have been charged to the Fund at all times.
We apologise for any inconvenience. Please contact 1300 346 821 if you have any questions.