Pendal Government Bond Fund (APIR: BTA0111AU ARSN: 098011048)

Change in investment return objective from 16 May 2022.

With effect from 16 May 2022, the Fund’s investment objective will change from  

“The Fund aims to provide a return (before fees and expenses) that exceeds the Bloomberg AusBond Govt 0+ Yr Index by 1.0% pa over a rolling 3 year period.”

to “The Fund aims to provide a return (before fees and expenses) that exceeds the Bloomberg AusBond Govt 0+ Yr Index over a rolling 3 year period.”

The change to the investment objective is to make the Fund consistent with the majority of our asset class strategies where we reference the outperformance of a benchmark and not a target return. There is no change to the investment strategy or process.

The Pendal Monthly Income Plus Fund’s September 2022 distribution will be paid on or around 26 September for the period ending 20 September 2022. 

The change is being made for operational reasons and will be for September 2022 only.

We anticipate the early payment of the September distribution will not impact the size of the distribution that would normally be paid. 

Investors will still receive distribution statements in accordance with our usual process.

Please call our Investor Services support line on 1300 346 821 if you have any questions.  

Increase to the Fund’s management fees and costs

The Fund’s financial year 2022 (FY22) estimated management fees and costs are 1.41% p.a. of the assets of the Fund. The estimated management fees and costs have increased from 1.28% p.a. of the assets of the Fund in financial year 2021.

The increase is due to the fund experiencing higher estimated transaction costs. The Fund’s FY22 estimated transaction costs net of any amount recovered by the Fund’s buy-sell spread increased by 0.13% p.a. to 0.17% p.a.

Transaction costs are incurred when buying and selling the Fund’s underlying securities and are paid out of the Fund’s assets. These costs are reflected in the daily unit price and are not charged to you as an additional fee. Transaction costs and buy-sell spread may vary from year to year depending upon market conditions, the market impact of transacting and volumes traded.

There has been no change to the Fund’s management fee of 1.22% p.a. or estimated expense recoveries of 0.02% p.a..

Key points

• Paul Hannan and Noel Webster will step down as Senior Portfolio Managers of Pendal’s Smaller Companies team from today.
• Over 17 years Paul and Noel have together built a well-respected and highly successful franchise. The Smaller Companies Fund has delivered 11.55% pa after fees since they took over management on April 1, 2004. The Microcap Opportunities Fund has returned 23.87% pa since its launch in March 2006. Both have significantly outperformed their benchmark, the S&P/ASX Small Ordinaries index (source: Pendal at Apr 30, 2021).
• Pendal’s emphasis on team development and a disciplined process has laid a strong foundation for the next stage in the franchise’s evolution.
• After more than three years as Portfolio Managers, Lewis Edgley and Patrick Teodorowski take over full management of the Pendal Smaller Companies and Pendal Microcap Opportunities portfolios from today.
• Paul Hannan will continue as an analyst until the stock coverage transition is completed. This is expected in 2022.
• Noel Webster will step down from the team as soon as the handover of his stock coverage is completed within the next two months.
• Edgley and Teodorowski also become Co-Heads of Smaller Companies in Pendal’s Australian equities boutique, reporting to Head of Australian Equities, Crispin Murray.

TODAY Pendal announces the next stage in a Smaller Companies portfolio management transition which began in 2017.

From June 21, Lewis Edgley and Patrick Teodorowski take over full management of Pendal’s Smaller Companies team.

Edgley and Teodorowski have been Portfolio Managers for the fund since early 2018. Over the past three years they have taken increasingly greater responsibility for the portfolio’s trading, position weightings and construction. They now take full responsibility of the team and portfolios.

Pendal’s Australian equities team has a culture of accountability, granting team members the opportunity to prove themselves.

Paul Hannan and Noel Webster successfully executed this approach, focusing on development within the Small Cap strategy. Edgley and Teodorowski have been with Pendal for eight and 11 years respectively. Their progression reflects our focus on development.

This transition is the next stage of the smaller companies evolution and demonstrates Hannan and Webster’s focus on succession planning and their confidence in leaving management of the funds in the hands of Edgley and Teodorowski.

The Smaller Companies team is a vital part of Pendal’s broader Australian equity boutique – in terms of the portfolios they run and the company research that feeds directly into the midcap and broadcap funds.

Edgley and Teodorowski will work closely with Crispin Murray and other portfolio managers in the boutique, building on a long track record of success and excellence in our small cap capability.

The team will continue to be assisted by analysts Rachel Cole and Damien Diamant. Another analyst is expected to be appointed shortly.

INVESTORS are advised of the following change to the September 2022 distributions. This change is being made for operational reasons.

The funds set out below will pay their distribution (if any) for the September quarter in the week commencing September 26, 2022 for the period ending September 20, 2022. This change will be for September 2022 only.

Investors will receive distribution statements in accordance with our usual process.
Please call our Investor Services support line on 1300 346 821 if you have any questions.

Pendal funds impacted if paying a September distribution:

Pendal Stable Cash Plus Fund (APIR: BTA0459AU) 

Increase to the Fund’s management fee effective 1 October 2022

Effective 1 October 2022, the management (issuer) fee for the Pendal Stable Cash Plus Fund (Fund) will increase from 0.15% p.a. to 0.18% p.a.

Why is the management fee increasing?

Since 2020, Australia has experienced historically low official cash rates due to the economic impact of Covid-19. On 1 July 2020, Pendal temporarily reduced its management fee for this Fund from 0.18% p.a. to 0.15% p.a. Although originally intended as a 12-month fee reduction, the lower management fee has continued to apply in light of the continued lower cash rates.

The management fee will increase to its original rate of 0.18% p.a. effective 1 October 2022.

There are no other changes to the Fund.

An updated Information Memorandum was issued for the Fund on 26 August 2022. Please contact us for a copy if required.

Pendal Managed Cash Fund (APIR: WFS0245AU, ARSN: 088 832 491)

Increase to the Fund’s management fee effective 1 October 2022

Effective 1 October 2022, the management (issuer) fee for the Pendal Managed Cash Fund (Fund) will increase from 0.12% p.a. to 0.22% p.a.

Why is the management fee increasing?

Since 2020, Australia has experienced historically low official cash rates due to the economic impact of Covid-19. On 1 July 2020, Pendal temporarily reduced its management fee for this Fund from 0.22% p.a. to 0.12% p.a. Although originally intended as a 12-month fee reduction, the lower management fee has continued to apply in light of the continued lower cash rates.

The management fee will increase to its original rate of 0.22% p.a. effective 1 October 2022.

There are no other changes to the Fund.

An updated Product Disclosure Statement (PDS) was issued for the Fund on 26 August 2022 and is available on www.pendalgroup.com. If you would like a hard copy of the PDS, please contact us.

Important Updates

Pendal Dynamic Income Fund (APIR: BTA8657AU, ARSN 622 750 734)
Pendal Enhanced Credit Fund (APIR: RFA0100AU, ARSN 089 937 815)
Pendal Fixed Interest Fund (APIR: RFA0813AU, ARSN 089 939 542)
Pendal MicroCap Opportunities Fund (APIR: RFA0061AU, ARSN 118 585 354)
Pendal Monthly Income Plus Fund (APIR: BTA0318AU, ARSN 137 707 996)
Pendal Sustainable Australian Fixed Interest Fund (APIR: BTA0507AU, ARSN 612 664 730)

Effective 30 June 2020, prior notice will no longer be provided in the event of a material increase to the buy-sell spreads of the above mentioned funds (Funds). Section 6, ‘Fees and costs’, of the PDS of the Funds has been updated to reflect these changes.

The buy-sell spread is an additional cost to you and is generally incurred whenever you invest in 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 as a result of applications to or redemptions from the Fund. The buy-sell spread also reflects the market impact of buying and selling the underlying securities in the market.

During periods of heightened volatility, as experienced during the COVID-19 pandemic, the cost of buying and selling securities can increase significantly, and suddenly. As a result, a Fund’s buy-sell spread may need to be adjusted to reflect the increase in transaction costs at short notice. This is to ensure all unit holders are treated fairly by attributing the costs of trading securities to those unit holders who are buying and selling units in a Fund.

You should review current buy-sell spread information before making a decision to invest or withdraw from a Fund. Please refer to our website www.pendalgroup.com and click ‘Products’ for the latest buy-sell spread for each of the Funds.

Important Updates

Pendal Dynamic Income Fund (APIR: BTA8657AU, ARSN 622 750 734)

Pendal Enhanced Credit Fund (APIR: RFA0100AU, ARSN 089 937 815)

Pendal Fixed Interest Fund (APIR: RFA0813AU, ARSN 089 939 542)

Pendal Monthly Income Plus Fund (APIR: BTA0318AU, ARSN 137 707 996)

Pendal Sustainable Australian Fixed Interest Fund (APIR: BTA0507AU, ARSN 612 664 730)

Effective 30 April 2020, the buy-sell spread for a number of Pendal funds (the Funds) will decrease as set out in the table below:

Table 1: Old and New 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 Funds.

The Funds’ buy-sell spread previously increased on either 19 March 2020 or 20 March 2020 due to substantially reduced market liquidity for Australian issued investment grade securities as a result of COVID-19. The reduction in the Fund’s buy-sell spread reflects an improvement in market liquidity for these assets.

Pendal will continue to monitor market conditions and review and update the buy-sell spread regularly as required. You should therefore review the current buy-sell spread information before making a decision to invest or withdraw from a Fund.

Please refer to our website www.pendalgroup.com and click ‘Products’ for the latest buy-sell spread for each Fund.

Important Updates

Pendal Enhanced Credit Fund (APIR: RFA0100AU, ARSN 089 937 815)

Pendal Enhanced Fixed Interest Trust (APIR: WFS0365AU, ARSN 099 765 947)

Pendal Fixed Interest Fund (APIR: RFA0813AU, ARSN 089 939 542)

Pendal Monthly Income Plus Fund (APIR: BTA0318AU, ARSN 137 707 996)

Pendal Sustainable Australian Fixed Interest Fund (APIR: BTA0507AU, ARSN 612 664 730)

Effective 20 March 2020, the buy-sell spread for a number of Pendal funds (the Funds) will increase as set out in the table below:

Table 1: Old and New 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 Funds.

Due to the impacts of COVID 19, investment markets have experienced substantial increases in volatility and substantially reduced liquidity in some markets, resulting in increases in trading costs in fixed income markets. The increase in the buy-sell spreads is related to substantially reduced market liquidity for Australian issued investment grade securities. This change does not reflect a deterioration in the credit quality of these assets.

Pendal has determined an increase the buy-sell spread for each of the Funds as set out in Table 1 above. The buy spread is payable on application to a Fund. The sell spread is payable on withdrawal from a Fund.

Pendal will continue to monitor market conditions and review and update the buy-sell spread regularly as required. You should therefore review the current buy-sell spread information before making a decision to invest or withdraw from a Fund.

Please refer to our website www.pendalgroup.com and click ‘Products’ for the latest buy-sell spread for each Fund.