Pendal Multi-Asset Target Return Fund (APIR: PDL3383AU)

(the “Fund”)

The following information contains an important update to the Fund’s exclusionary screens disclosed in the Product Disclosure Statement dated 19 December 2024 for the Pendal Multi-Asset Target Return Fund (PDS) and should be read in conjunction with the PDS.

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

In our view, this change ensures that the Fund is more closely aligned with investor expectations around responsible investing. 

Further, we have clarified the Fund’s definition of controversial weapons includes white phosphorus weapons.

Exclusionary Screens Effective 30 June 2025

Effective 30 June 2025, the section ‘Labour, Environmental, Social and Ethical Considerations’ in section 5 of the PDS is replaced with the following:

We do take environmental, social (including labour standards) and ethical considerations into account when making investment decisions. Sustainable investment practices are incorporated into the Fund by implementing exclusionary screens.

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

• tobacco production (including e-cigarettes and inhalers);
• controversial weapons manufacture (including cluster munitions, landmines, biological or chemical weapons, nuclear weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, non-detectable fragments and white phosphorus weapons); or
• supply of goods or services specifically related to controversial weapons.

The Fund will also not invest in companies or issuers directly involved in the following activities, where such activities account for 10% or more of a company’s or issuer’s gross revenue:

• the production of alcohol;
• manufacture or provision of gaming facilities;
• manufacture of non-controversial weapons or armaments;
• manufacture or distribution of pornography;
• uranium mining for the purpose of nuclear power generation; or
• extraction of thermal coal and oil sands production.

Exclusionary screens are not applied to government securities, semi-government securities, supranational securities, cash or derivatives. The use of derivatives may result in the Fund having indirect exposure to the excluded companies or issuers.

All reasonable care has been taken to implement the Fund’s exclusionary screens to meet the criteria described above. We draw on internal and supplementary external research, believed to be accurate, to determine whether an investment is subject to the exclusionary screens. 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 will meet all of these criteria at all times.

We review investments subject to the exclusionary screens monthly and monitor the Fund’s compliance with its investment guidelines (including the exclusionary screens) daily. If we discover an investment no longer meets our criteria, we will divest the holding as soon as we consider appropriate, having regard to the interests of investors (and this will be on a case by case basis).

Important Updates:

Pendal Sustainable International Share Fund (APIR: BTA0568AU, ARSN 612 665 219)

Effective 22 May 2025, the buy-sell spread for the Pendal Sustainable International Share Fund (the Fund) 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.

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.

The Fund’s buy-sell spread will increase to reflect an increase in the Fund’s brokerage costs and local market jurisdiction transaction taxes.

As transaction costs may change depending on various factors such as market conditions and brokerage costs, buy-sell spreads may also change without prior notice. You should therefore 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, click ‘Products’, select the Fund and click on ‘View fund information’ for the latest buy-sell spread for the Fund.

We have updated and reissued the Product Disclosure Statements (PDS) for the following Pendal funds effective on and from Thursday, 15 May 2025: 

• Pendal Active Balanced Fund
• Pendal Active Conservative Fund
• Pendal Active Growth Fund
• Pendal Active High Growth Fund
• Pendal Active Moderate 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 each 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 each Fund’s constitution.

Changes to Fund details

We have updated that regular communications for changes will be discontinued except for when there are material changes where we will continue to provide prior notice. Material change notices will continue to be available online in the Important Updates section.

Updates to restrictions on withdrawals

We have updated the disclosure on restrictions on withdrawals to align closer to what is in each Fund’s constitution.

Additional information on how to apply for direct investors

We have provided additional information for non-advised retail investors (retail investors without a financial adviser) investing directly in a 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.

This document has been prepared by Pendal Fund Services Limited (Pendal) ABN 13 161 249 332, AFSL No: 431426 and the information is current as at the date of this document. Pendal is the responsible entity and issuer of units in the funds listed in this document (Funds). A Product Disclosure Statement (PDS) is available for each of the Funds and can be obtained by calling us or visiting www.pendalgroup.com. You should obtain and consider the PDS before deciding whether to acquire, continue to hold or dispose of units in a Fund. An investment in any of the Funds is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. 

This information been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on this information, consider its appropriateness having regard to their individual objectives, financial situation and needs. This information is not to be regarded as a securities recommendation. 

This information is for general information only and should not be considered as a comprehensive statement on any of the matters described and should not be relied upon as such. Neither Pendal nor any company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) gives any warranty for the accuracy, reliability or completeness of the information in this document or otherwise endorses or accepts responsibility for this information. Except where contrary to law, Pendal intends by this notice to exclude all liability for this material. 

The Pendal Asian Share Fund (Fund) will terminate on Monday, 18 August 2025.

Why is the Fund terminating?

We regularly review our product offerings and investment capabilities to ensure that our business continues to maintain a product suite that remains viable and relevant to our investor demands.

After careful consideration, we have determined that terminating the Fund is in the best interests of investors.

The Fund’s small size means that it has high running costs and cannot be managed in a cost efficient way.

We also consider that the Fund has little prospect of significant growth in funds under management in the foreseeable future. If the Fund were to continue, the Fund’s size would result in higher management costs for investors, which would reduce their investment returns.

How this affects you?

We will terminate the Fund on Monday, 18 August 2025.

Any applications received after 2:00pm (Sydney time) on Tuesday, 13 May 2025 will not be accepted. There will be no reinvestment of distributions from 2:00pm (Sydney time) on Tuesday, 13 May 2025.

We will continue to accept withdrawal requests up to 2:00pm (Sydney time) on Friday, 15 August 2025.

As soon as practicable after the Fund is terminated on Monday, 18 August 2025, we will begin winding up the Fund. The assets remaining in the Fund will be realised and the proceeds distributed to all investors in proportion to their unit holding.

What does this mean for you?

The cash proceeds from this termination will be paid directly to your nominated bank account on file on or around the week commencing Monday, 25 August 2025 or shortly thereafter.

Any distributions paid from 2:00pm (Sydney time) on Tuesday, 13 May 2025 will be paid as cash into your nominated bank account on file.

Details of any distributions paid to you during the financial years ending 30 June 2025 and 30 June 2026 will be included in your 2025 and 2026 AMIT Member Annual (AMMA) statements, respectively. These statements will set out the components of the income that have been attributed to you following the end of the financial years ending 30 June 2025 and 30 June 2026.

Questions?  

If you have any questions, please contact our Investor Relations Team during business hours on 1300 346 821.

Effective 30 April 2025, 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.

Following the initial impact of the Trump tariff announcement, investment markets have experienced an improvement in market conditions. This has led to increasing liquidity and a reduction in market impact when selling Australian credit securities. Consequently, trading costs in these markets have decreased, leading to lower trading costs for the Pendal Income and Fixed Interest Funds (as set out in Table 1 above).

Pendal has determined to decrease 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, click ‘Products’, select the Fund and click on ‘View fund information’ for the latest buy-sell spread for each Fund.

We have updated and reissued the Product Disclosure Statement (PDS) for the Pendal Sustainable Conservative Fund (the Fund) effective on and from 15 April 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 sustainability assessment framework employed by the Fund in respect of the Australian and International shares, Australian and International fixed interest and part of the Alternative investments asset classes of the Fund and the benefits associated with the Fund’s approach to ESG.  

The way the Fund is managed has not changed.

Exclusionary Screens

We have clarified, the Fund’s exclusionary screens are not applied to Australian and International property securities, part of the Fund’s Alternative Investments and certain financial instruments such as securities issued by government, semi-government or supranational entities, cash and derivatives. We have also added that 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.

We have updated and reissued the Product Disclosure Statement (PDS) for the Pendal Sustainable Balanced Fund (the Fund) effective on and from 15 April 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 sustainability assessment framework employed by the Fund in respect of the Australian and International shares, Australian and International fixed interest and part of the Alternative investments asset classes of the Fund and the benefits associated with the Fund’s approach to ESG.  

The way the Fund is managed has not changed.

Exclusionary Screens

We have clarified, the Fund’s exclusionary screens are not applied to Australian and International property securities, part of the Fund’s Alternative Investments and certain financial instruments such as securities issued by government, semi-government or supranational entities, cash and derivatives. We have also added that 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 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.

Following an internal review, effective 31 May 2025, we have decided to make the following changes to the benchmark and investment objective of the Fund:

Why are we making the change?

We are making the above changes to the benchmark and investment objective of the Fund for the following reasons:

Benchmark:

The Fund adopts an emulation approach, utilising investment holdings of related parties and/or third party’s investment strategies (Underlying Strategies) (adjusting them as set out in the Information Memorandum to be issued on or around 10 April 2025). These Underlying Strategies are benchmarked against the MSCI ACWI ex Australia Index (Net in AUD). Consequently, changing the Fund’s benchmark to the MSCI ACWI ex Australia Index (Net in AUD) is considered a more appropriate benchmark for performance measurement, as it eliminates the benchmark mismatch.

Investment objective:

The Fund is managed to outperform the benchmark rather than aiming for a set alpha target. Therefore, changing the Fund’s investment objective offers a more representative view of how the Fund is managed and its expected returns over the long term.

Additionally, extending the investment time period from 3 years to 5 years aligns the Fund’s investment objective with the longer-term investment horizon of the adjusted Underlying Strategies implemented within the Fund.

What do you need to do?

An updated Information Memorandum is available upon request. You should consider the updated Information Memorandum and the changes to the benchmark and investment objective of the Fund before deciding whether to acquire or hold units in the Fund.

Questions? 

If you have any questions about your investment or would like further information regarding the changes, please contact us 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).

Effective 8 April 2025, 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 impact of the Trump tariff announcement, investment markets have experienced increased volatility. This has led to reduced liquidity and greater market impact when selling Australian credit securities, leading to higher trading costs in these markets, and hence increased trading costs for the Pendal Income and Fixed interest Funds (as set out in Table 1 above). This change does not reflect a deterioration in the credit quality of these assets.

Pendal has determined to 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, click ‘Products’, select the Fund and click on ‘View fund information’ for the latest buy-sell spread for each Fund.

The Barrow Hanley Concentrated Global Share Fund No. 3 (formerly known as Pendal Concentrated Global Share Fund No.3) Annual Report for the year ended 30 June 2024 (2024 Annual Report) published on our website from 30 September 2024 to 5 March 2025 was inadvertently missing the page which contained the Statement of Comprehensive Income. The 2024 Annual Report with the missing page included has now been republished on the website on 5 March 2025, available here: Barrow Hanley Concentrated Global Share Fund No3 – Annual Report.pdf.