Termination of the Pendal Diversified Global Equity Fund (APIR: BTA0316AU, ARSN 134 214 618) – Update
The Pendal Diversified Global Equity Fund (Fund) will terminate on Tuesday, 28 November 2023.
Update on the estimated date for payment of cash proceeds
The cash proceeds from this termination, including any distribution of net income, is expected to be paid to your nominated bank account on file on or around 7 December 2023 rather than the previously advised estimated date of on or around Friday, 15 December 2023 or shortly thereafter.
Please refer to the Notice of Termination: Pendal Diversified Global Equity Fund (APIR: BTA0316AU, ARSN 134 214 618) dated 25 August 2023 for more details on this termination.
Questions?
If you have any questions, please contact our Investor Relations Team during business hours Monday to Friday on 1300 346 821.
The Pendal American Share Fund (Fund) will terminate on Tuesday, 28 November 2023.
Update on the estimated date for payment of cash proceeds
The cash proceeds from this termination, including any distribution of net income, is expected to be paid to your nominated bank account on file on or around 7 December 2023 rather than the previously advised estimated date of the week commencing Monday, 11 December 2023.
Please refer to the Notice of Termination: Pendal American Share Fund (APIR: BTA0100AU, ARSN 087 594 509) dated 25 August 2023 for more details on this termination.
Questions?
If you have any questions, please contact our Investor Relations Team during business hours Monday to Friday on 1300 346 821.
The Pendal European Share Fund (Fund) will terminate on Tuesday, 28 November 2023.
Update on the estimated date for payment of cash proceeds
The cash proceeds from this termination, including any distribution of net income, is expected to be paid to your nominated bank account on file on or around 7 December 2023 rather than the previously advised estimated date of the week commencing Monday, 11 December 2023.
Please refer to the Notice of Termination: Pendal European Share Fund (APIR: BTA012AU, ARSN 087 594 429) dated 25 August 2023 for more details on this termination.
Questions?
If you have any questions, please contact our Investor Relations Team during business hours Monday to Friday on 1300 346 821.
Increase to the Pendal Asian Share Fund’s management fees and costs
The Fund’s financial year 2023 (FY23) estimated management fees and costs are 1.30% p.a. of the assets of the Fund. The estimated management fees and costs have increased from 1.20% p.a. of the assets of the Fund in financial year 2022.
The increase is due to the fund experiencing higher estimated transaction costs. The Fund’s FY23 estimated transaction costs net of any amount recovered by the Fund’s buy-sell spread increased by 0.10% p.a. to 0.30% 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 and volumes traded.
There has been no change to the Fund’s management fee of 1.00% p.a..
Pendal Concentrated Global Share Fund No.3 (APIR BTA0056AU) (ARSN 087 593 299) and
Pendal Concentrated Global Share Fund No.3 Class B (APIR BTA0270AU) (ARSN 087 593 299)
Delegated Investment Manager
As stated in our notice of 13 September 2023, we have decided to appoint Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley) as the Fund’s delegated investment manager. As the Funds’ delegated investment manager, Barrow Hanley will have responsibility for the day-to-day investment management of the Fund.
Barrow Hanley’s appointment will take effect from 31 October 2023.
Pendal Institutional Limited (Pendal) will continue to act as the investment manager of the Fund.
We wish to provide further details regarding the appointment and the potential impact to investors. This update should be read in conjunction with the notice of 13 September 2023.
Transaction costs
The appointment of Barrow Hanley will require the sale and purchase of securities within the Fund as we transition to the new portfolio. As is currently the case, there will be costs such as brokerage and transaction taxes involved in these transactions which will be borne by the Fund.
As a result of Barrow Hanley’s appointment, Pendal estimates that the Fund will incur total transaction costs of 0.12% (including brokerage, transaction taxes and fees). This will be a one-off cost that covers the sale of current securities and the purchase of securities selected by Barrow Hanley. This amount represents transaction costs incurred by the Fund and is not a fee paid to Pendal.
These costs were taken into account in assessing whether the proposed changes to the portfolio are in the best interests of investors.
Tax implications
Pendal does not provide notice of the tax implications of transactions within the portfolio to investors. This was, however, a factor in our consideration of whether the appointment of Barrow Hanley is in the best interests of investors.
At 30 June 2023, the Fund had net assets of $40M of which $5.1M were net unrealised capital gains (before the application of the 50% CGT discount). The Fund has net capital losses brought forward from prior years of $503.3M, which will be applied to reduce any realised capital gains from the sale of securities as we transact to the new portfolio to nil.
Pendal Concentrated Global Share Fund No.2 (APIR RFA0821AU) (ARSN 089 938 492)
Delegated Investment Manager
As stated in our notice of 13 September 2023, we have decided to appoint Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley) as the Fund’s delegated investment manager. As the Funds’ delegated investment manager, Barrow Hanley will have responsibility for the day-to-day investment management of the Fund.
Barrow Hanley’s appointment will take effect from 31 October 2023.
Pendal Institutional Limited (Pendal) will continue to act as the investment manager of the Fund.
We wish to provide further details regarding the appointment and the potential impact to investors. This update should be read in conjunction with the notice of 13 September 2023.
Transaction costs
The appointment of Barrow Hanley will require the sale and purchase of securities within the Fund as we transition to the new portfolio. As is currently the case, there will be costs such as brokerage and transaction taxes involved in these transactions which will be borne by the Fund.
As a result of Barrow Hanley’s appointment, Pendal estimates that the Fund will incur total transaction costs of 0.12% (including brokerage, transaction taxes and fees). This will be a one-off cost that covers the sale of current securities and the purchase of securities selected by Barrow Hanley. This amount represents transaction costs incurred by the Fund and is not a fee paid to Pendal.
These costs were taken into account in assessing whether the proposed changes to the portfolio are in the best interests of investors.
Tax implications
Pendal does not provide notice of the tax implications of transactions within the portfolio to investors. This was, however, a factor in our consideration of whether the appointment of Barrow Hanley is in the best interests of investors.
At 30 June 2023, the Fund had net assets of $73.8M of which $10.3M were net unrealised capital gains (before the application of the 50% CGT discount). The Fund has no revenue or net capital losses brought forward from prior years to offset any realised capital gains from the sale of securities as we transact to the new portfolio.
Pendal Concentrated Global Share Fund Hedged Class R (APIR RFA0031AU) (ARSN 098 376 151)
Pendal Concentrated Global Share Fund Hedged Class Z (APIR PDL6836AU) (ARSN 098 376 151)
Delegated Investment Manager
As stated in our notice of 13 September 2023, we have decided to appoint Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley) as the Fund’s delegated investment manager. As the Funds’ delegated investment manager, Barrow Hanley will have responsibility for the day-to-day investment management of the Fund.
Barrow Hanley’s appointment will take effect from 31 October 2023.
Pendal Institutional Limited (Pendal) will continue to act as the investment manager of the Fund.
We wish to provide further details regarding the appointment and the potential impact to investors. This update should be read in conjunction with the notice of 13 September 2023.
Transaction costs
The appointment of Barrow Hanley will require the sale and purchase of securities within the Fund as we transition to the new portfolio. As is currently the case, there will be costs such as brokerage and transaction taxes involved in these transactions which will be borne by the Fund.
As a result of Barrow Hanley’s appointment, Pendal estimates that the Fund will incur total transaction costs of 0.12% (including brokerage, transaction taxes and fees). This will be a one-off cost that covers the sale of current securities and the purchase of securities selected by Barrow Hanley. This amount represents transaction costs incurred by the Fund and is not a fee paid to Pendal.
These costs were taken into account in assessing whether the proposed changes to the portfolio are in the best interests of investors.
Tax implications
Pendal does not provide notice of the tax implications of transactions within the portfolio to investors. This was, however, a factor in our consideration of whether the appointment of Barrow Hanley is in the best interests of investors.
At 30 June 2023, the Fund had net assets of $185.8M of which $32.6M were net unrealised capital gains (before the application of the 50% CGT discount). The Fund has no revenue or net capital losses brought forward from prior years to offset any realised capital gains from the sale of securities as we transact to the new portfolio.
Pendal Concentrated Global Share Fund (APIR BTA0503AU) (ARSN 613 608 085)
Delegated Investment Manager
As stated in our notice of 13 September 2023, we have decided to appoint Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley) as the Fund’s delegated investment manager. As the Funds’ delegated investment manager, Barrow Hanley will have responsibility for the day-to-day investment management of the Fund.
Barrow Hanley’s appointment will take effect from 31 October 2023.
Pendal Institutional Limited (Pendal) will continue to act as the investment manager of the Fund.
We wish to provide further details regarding the appointment and the potential impact to investors. This update should be read in conjunction with the notice of 13 September 2023.
Transaction costs
The appointment of Barrow Hanley will require the sale and purchase of securities within the Fund as we transition to the new portfolio. As is currently the case, there will be costs such as brokerage and transaction taxes involved in these transactions which will be borne by the Fund.
As a result of Barrow Hanley’s appointment, Pendal estimates that the Fund will incur total transaction costs of 0.12% (including brokerage, transaction taxes and fees). This will be a one-off cost that covers the sale of current securities and the purchase of securities selected by Barrow Hanley. This amount represents transaction costs incurred by the Fund and is not a fee paid to Pendal.
These costs were taken into account in assessing whether the proposed changes to the portfolio are in the best interests of investors.
Tax implications
Pendal does not provide notice of the tax implications of transactions within the portfolio to investors. This was, however, a factor in our consideration of whether the appointment of Barrow Hanley is in the best interests of investors.
At 30 June 2023, the Fund had net assets of $602.5M of which $120.1M were net unrealised capital gains (before the application of the 50% CGT discount). The Fund has no revenue or net capital losses brought forward from prior years to offset any realised capital gains from the sale of securities as we transact to the new portfolio.
We are notifying you of some important changes relating to the Pendal Concentrated Global Share Fund No. 3 (Fund).
Following a strategic review of our global equity investment capabilities, we have decided to appoint Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley) as the Fund’s delegated investment manager. As the Fund’s delegated investment manager, Barrow Hanley will have responsibility for the day-to-day investment management of the Fund.
Barrow Hanley’s appointment will take effect from 31 October 2023.
Pendal Institutional Limited (Pendal) will continue to act as the investment manager of the Fund.
Why are we making the change?
As part of the broader Perpetual Group, we want to ensure our clients have exposure to competitive and differentiated strategies which utilise the investment management capabilities that we believe are best placed to meet the investment objectives of the Fund and are likely to deliver the best outcomes for investors, over the medium to long term.
Barrow Hanley, who are also part of the Perpetual Group, has a quality investment process, an experienced well-resourced team of more than 50 investment professionals, scale and depth of research and an aligned investment style to Pendal. As a result, we consider that Barrow Hanley is better placed to meet the Fund’s investment objectives, over the medium to long term.
What is changing?
Fund name
Effective on or around 31 October 2023, the Fund’s name will change (as set out below) to reflect the appointment of Barrow Hanley as the Fund’s delegated investment manager:
| Current Name | New Name |
| Pendal Concentrated Global Share Fund No. 3 | Barrow Hanley Concentrated Global Share Fund No. 3 |
Investment related changes
While the Fund will continue to operate in the same way, there will be some changes to the way the Fund is managed.
Effective from 31 October 2023, these changes include:
- Minimum and maximum number of stocks
The Fund will remain a concentrated portfolio of global shares. However, the minimum and maximum number of stocks held by the Fund will reduce from 35 – 55 stocks to 25 – 40 stocks.
- Asset allocation ranges
The Fund’s asset allocation ranges will change as follows:
| Current Asset Allocation Ranges | New Asset Allocation Ranges |
| • Global Shares 80-100% • Cash 0-20% | • Global Shares 90-100% • Cash 0-10% |
- Emerging markets exposure
The Fund will continue to primarily invest in companies domiciled in developed markets and a 20% maximum limit will be introduced for the Fund’s allocation to emerging markets.
- Labour, Environmental, Social and Ethical Considerations
Like Pendal, Barrow Hanley’s investment approach considers labour standards, environmental, social and ethical (ESG) risks to the extent that they are relevant to the current or future valuation of a stock, although Barrow Hanley’s investment approach does not consider ethical or moral judgements.
Effective from 31 October 2023, the Fund will no longer screen for companies involved in the following activities:
- uranium mining for the purpose of nuclear power generation;
- manufacture, ownership or operation of gambling facilities, gaming services or other forms of wagering;
- mining of thermal coal;
- factory animal farming; and
- weapons systems, components and support systems and services.
The Fund, however, will continue to screen for tobacco production and will not invest in companies that are directly involved in tobacco production, where tobacco production accounts for 10% or more of a company’s gross revenue.
- Buy-sell Spread
Effective from 31 October 2023, the Fund’s buy-sell spread will decrease from 0.40% (0.20% buy/0.20% sell) to 0.25% (0.15% buy/0.10% sell), reflecting lower brokerage costs that are expected to be incurred by the Fund following the appointment of Barrow Hanley.
What will stay the same?
Like Pendal, Barrow Hanley’s investment process for global shares strives to achieve the Fund’s investment objectives by adopting a bottom-up investment approach focused on in-depth fundamental company research to identify companies that temporarily trade below their intrinsic value and offer long term capital growth. Like Pendal, Barrow Hanley also applies a benchmark agnostic and high conviction approach to investing.
The Fund’s benchmark will continue to be the MSCI World ex Australia (Standard) Index (Net Dividends) in AUD and the Fund will still aim to provide a return (before fees, costs and taxes) that exceeds its benchmark over the medium to long term.
Fees and costs
The Fund’s management fee will remain at 0.90% p.a.
However, we estimate that the Fund will incur additional, one-off transaction costs of 0.12% (including brokerage, taxes and fees) as a result of Barrow Hanley’s appointment.
About Barrow Hanley
Based in Dallas, Texas (USA), Barrow Hanley is a diversified investment manager offering value-focused strategies spanning global equities and fixed income. With more than AUD$69 billion in assets under management as at 30 June 2023, Barrow Hanley has been providing quality client outcomes for more than 40 years.
Portfolio Manager Brad Kinkelaar will manage the Fund. Brad has more than 27 years’ industry experience and joined Barrow Hanley in 2017.
What do you need to do?
No action is required. You will be able to continue to invest or withdraw from the Fund in the same way.
An updated PDS reflecting the proposed appointment of Barrow Hanley and outlining the above changes, is available on www.pendalgroup.com. If you would like a hard copy of the PDS, please contact Pendal Customer Relations.
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).
For any questions regarding how these changes may impact your own financial situation, we recommend that you speak to your financial advisor and/or tax accountant.
We are notifying you of some important changes relating to the Pendal Concentrated Global Share Fund No. 2 (Fund).
Following a strategic review of our global equity investment capabilities, we have decided to appoint Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley) as the Fund’s delegated investment manager. As the Fund’s delegated investment manager, Barrow Hanley will have responsibility for the day-to-day investment management of the Fund.
Barrow Hanley’s appointment will take effect from 31 October 2023.
Pendal Institutional Limited (Pendal) will continue to act as the investment manager of the Fund.
Why are we making the change?
As part of the broader Perpetual Group, we want to ensure our clients have exposure to competitive and differentiated strategies which utilise the investment management capabilities that we believe are best placed to meet the investment objectives of the Fund and are likely to deliver the best outcomes for investors, over the medium to long term.
Barrow Hanley, who are also part of the Perpetual Group, has a quality investment process, an experienced well-resourced team of more than 50 investment professionals, scale and depth of research and an aligned investment style to Pendal. As a result, we consider that Barrow Hanley is better placed to meet the Fund’s investment objectives, over the medium to long term.
What is changing?
Fund name
Effective on or around 31 October 2023, the Fund’s name will change (as set out below) to reflect the appointment of Barrow Hanley as the Fund’s delegated investment manager:
| Current Name | New Name |
| Pendal Concentrated Global Share Fund No. 2 | Barrow Hanley Concentrated Global Share Fund No. 2 |
Investment related changes
While the Fund will continue to operate in the same way, there will be some changes to the way the Fund is managed.
Effective from 31 October 2023, these changes include:
- Minimum and maximum number of stocks
The Fund will remain a concentrated portfolio of global shares. However, the minimum and maximum number of stocks held by the Fund will reduce from 35 – 55 stocks to 25 – 40 stocks.
- Asset allocation ranges
The Fund’s asset allocation ranges will change as follows:
| Current Asset Allocation Ranges | New Asset Allocation Ranges |
| • Global Shares 80-100% • Cash 0-20% | • Global Shares 90-100% • Cash 0-10% |
- Emerging markets exposure
The Fund will continue to primarily invest in companies domiciled in developed markets and a 20% maximum limit will be introduced for the Fund’s allocation to emerging markets.
- Labour, Environmental, Social and Ethical Considerations
Like Pendal, Barrow Hanley’s investment approach considers labour standards, environmental, social and ethical (ESG) risks to the extent that they are relevant to the current or future valuation of a stock, although Barrow Hanley’s investment approach does not consider ethical or moral judgements.
Effective from 31 October 2023, the Fund will no longer screen for companies involved in the following activities:
- uranium mining for the purpose of nuclear power generation;
- manufacture, ownership or operation of gambling facilities, gaming services or other forms of wagering;
- mining of thermal coal;
- factory animal farming; and
- weapons systems, components and support systems and services.
The Fund, however, will continue to screen for tobacco production and will not invest in companies that are directly involved in tobacco production, where tobacco production accounts for 10% or more of a company’s gross revenue.
- Buy-sell Spread
Effective from 31 October 2023, the Fund’s buy-sell spread will decrease from 0.40% (0.20% buy/0.20% sell) to 0.25% (0.15% buy/0.10% sell), reflecting lower brokerage costs that are expected to be incurred by the Fund following the appointment of Barrow Hanley.
What will stay the same?
Like Pendal, Barrow Hanley’s investment process for global shares strives to achieve the Fund’s investment objectives by adopting a bottom-up investment approach focused on in-depth fundamental company research to identify companies that temporarily trade below their intrinsic value and offer long term capital growth. Like Pendal, Barrow Hanley also applies a benchmark agnostic and high conviction approach to investing.
The Fund’s benchmark will continue to be the MSCI World ex Australia (Standard) Index (Net Dividends) in AUD and the Fund will still aim to provide a return (before fees, costs and taxes) that exceeds its benchmark over the medium to long term.
Fees and costs
The Fund’s management fee will remain at 0.90% p.a.
However, we estimate that the Fund will incur additional, one-off transaction costs of 0.12% (including brokerage, taxes and fees) as a result of Barrow Hanley’s appointment.
About Barrow Hanley
Based in Dallas, Texas (USA), Barrow Hanley is a diversified investment manager offering value-focused strategies spanning global equities and fixed income. With more than AUD$69 billion in assets under management as at 30 June 2023, Barrow Hanley has been providing quality client outcomes for more than 40 years.
Portfolio Manager Brad Kinkelaar will manage the Fund. Brad has more than 27 years’ industry experience and joined Barrow Hanley in 2017.
What do you need to do?
No action is required. You will be able to continue to invest or withdraw from the Fund in the same way.
An updated PDS reflecting the proposed appointment of Barrow Hanley and outlining the above changes, is available on www.pendalgroup.com. If you would like a hard copy of the PDS, please contact Pendal Customer Relations.
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).
For any questions regarding how these changes may impact your own financial situation, we recommend that you speak to your financial advisor and/or tax accountant.