We have updated and reissued the Product Disclosure Statement (PDS) for the Pendal Fixed Interest Fund (the Fund) effective on and from Thursday, 6 June 2024.
The following is a summary of the key changes reflected in the PDS.
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 asset classes and asset allocation ranges disclosure
There has been no change to the way the Fund is invested.
We have, however, removed the reference to ‘currency’ from the Fund’s asset classes and asset allocation ranges description to more accurately reflect the fact that ‘currency’ is not an asset class.
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 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 investors
We have provided additional information for non-advised investors (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 9 February 2024, the auditor for the Pendal Australian Long/Short Fund changed from PricewaterhouseCoopers to KPMG. As a result, KPMG will now act as the independent auditor of the Fund’s financial statements.
Effective 16 April 2024, KPMG will also act as the auditor of the Fund’s Compliance Plan.
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 Balanced Returns Fund (Fund) will terminate on Tuesday, 18 June 2024.
Why is the Fund terminating?
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 Tuesday, 18 June 2024.
Any applications received after 1:00pm (Sydney time) on Wednesday, 13 March 2024 will not be accepted. There will be no reinvestment of distributions from 1:00pm (Sydney time) on Wednesday, 13 March 2024.
Withdrawals and transfers will continue to be processed up until 1:00pm (Sydney time) on Monday, 17 June 2024.
As soon as practicable after the Fund is terminated on Tuesday, 18 June 2024, 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?
Cash proceeds from this termination will be paid directly to your nominated bank account on file on or around the week commencing Monday, 24 June 2024 or shortly thereafter.
Any distributions paid from 1:00pm (Sydney time) on Wednesday, 13 March 2024, including the March 2024 quarter will be paid as cash into your nominated bank account on file.
Details of any distributions paid to you during the current financial year will be included in your final AMIT Member Annual (AMMA) statement. This statement will set out the components of the income that have been attributed to you following the end of the financial year ending 30 June 2024.
Questions?
If you have any questions, please contact our Investor Relations Team during business hours on 1300 346 821.
The Pendal Geared Imputation Fund (Fund) will terminate on Tuesday, 26 March 2024.
Why is the Fund terminating?
The Fund’s small size means that it has high running costs and cannot be managed in a cost-efficient way.
The Fund has also been in outflow for a number of years, and we consider that there is little prospect of significant growth in funds under management in the foreseeable future.
As the Fund continues to get smaller, continuing to run the Fund would result in higher management costs for investors, which would reduce investment returns.
How this affects you?
We will terminate the Fund on Tuesday, 26 March 2024.
Any applications or transfers received after 11.00am (Sydney time) on Tuesday. 5 March 2024 will not be accepted.
We will continue to accept withdrawal requests up to 2:00pm (Sydney time), on Monday, 25 March 2024.
What happens next?
As soon as practicable after the Fund is terminated on Tuesday, 26 March 2024, we will begin winding up the Fund. The assets remaining in the Fund will be realised and the proceeds paid 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 Wednesday, 3 April 2024.
We also expect that the termination of the Fund will result in a final distribution of the income of the Fund which will be paid directly to your nominated bank account before the payment of the cash proceeds from the termination.
Details of any distribution paid to you will be included in your final Distribution Statement. You will also receive an AMIT Member Annual (AMMA) statement which will set out the details of taxable income that has been attributed to you following the end of the 2023/2024 financial year.
Questions?
If you have any questions, please contact our Investor Relations Team during business hours Monday to Friday on 1300 346 821.
What is changing?
Effective 5 March 2024, the weighted average maturity (WAM) of the Fund will not exceed 90 days and all securities held by the Fund will mature within 190 days. The Fund’s WAM has been reduced from 100 days and the maximum maturity of all securities held by the Fund has been shortened from 12 months.
The Fund will also no longer have the ability to use derivatives.
Why are we making the changes?
The changes are being made to better reflect the way in which the Fund is managed.
What will stay the same?
There are no other changes to the Fund.
The Fund will continue to target a return (before fees and expenses) that exceeds the RBA Cash Rate by at least 0.45% p.a..
Additionally, there is no change to the Fund’s management fee.
What do you need to do?
No action is required. You will be able to continue to invest and withdraw from the Fund.
Updated Information Memorandum (IM)
An updated IM issued on 5 March 2024 is available by calling us on 1300 346 821.
Increase to the Pendal Dynamic Income Fund (Fund) transaction costs
The Fund’s financial year ending 30 June 2023 (FY23) estimated transaction costs net of the amount recovered by the Fund’s buy-sell spread (net transaction costs) are 0.11% of the assets of the Fund. The estimated net transaction costs have increased from 0.04% p.a. of the assets of the Fund in financial year 2022.
Transaction costs are incurred when buying and selling the Fund’s underlying securities and may be incurred as a result of changes in a Fund’s investment strategy or investors entering or exiting the Fund.
When the Fund changes its investment portfolio, transaction costs are paid out of the Fund’s assets and are reflected in the daily unit price. They are not charged to you as an additional fee.
If you choose to enter or exit the Fund (to buy or sell units) some or all of the associated transaction costs will be recouped via the Fund’s buy-sell spread (being the difference between the Fund’s entry and exit unit prices).
The Fund’s estimated FY23 total transaction costs for the Fund were 0.16%. Of this amount, we estimate 0.05% was recouped via the buy-sell spread and 0.11% reduced the return of the Fund.
There has been no change to the management fee for any of the Fund’s classes of units.
Effective 1 December 2023, Pendal will not accept applications from direct non-advised investors (an investor without a financial adviser) in the Pendal Geared Imputation Fund (Fund).
The Fund invests in a geared portfolio of shares and securities. Gearing means borrowing to invest and therefore magnifies both potential investment gains and losses. This means that returns are higher during a rising market and losses are greater during a falling market (in each case less the interest paid on the borrowings (compared to a similar investment that is not geared).
Due to the additional risk associated with the Fund’s geared investment strategy, compared to a conventional Australian share fund, the Pendal Geared Imputation Fund will only accept applications from direct investors who have received personal financial product advice.
If you wish to invest in the Fund, please seek personal advice from a financial adviser and include the confirmation of advice with your Application Form, alternatively the Adviser can complete the relevant Adviser section on the Application Form.
Effective 15 December 2023, Pendal will only accept applications from direct non-advised investors (an investor without a financial adviser) in the Pendal MicroCap Opportunities Fund (Fund) if you are assessed as likely to be in within the target market for the Fund.
Due to the nature of micro cap companies there is some additional risk in investing in the Pendal MicroCap Opportunities Fund, compared to a conventional Australian share fund. Because of the additional risk, Pendal only accepts applications from direct non-advised investors who are likely to be in the target market of the Fund.
If you wish to invest in the Fund, please contact Client Services by emailing ServiceTeam@pendalgroup.com and an issuer representative will call you back as soon as possible.
The issuer representative will ask a series of questions to assess whether you are likely to be in the target market of the Fund. Based upon the responses to your questions, if you are assessed as likely to be in target market of the Fund we will issue you with an application form for the Fund, so you can proceed with your investment. If you are assessed as unlikely to be in target market of the Fund we will be unable to issue you with an application form for the Fund.
Alternatively, you may wish to contact your financial adviser to discuss your personal circumstances.
The Pendal Multi-Asset team have completed their annual Strategic Asset Allocation review. As an outcome of the review, effective from 20 December 2023, a portion of the Fund’s international share exposure will be hedged to the Australian dollar. Currently the Fund’s international share exposure is generally not hedged to the Australian dollar.