We are notifying you of some important changes relating to the Pendal Concentrated Global Share Fund Hedged (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 Hedged | Barrow Hanley Concentrated Global Share Fund Hedged |
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.
Pendal will continue to manage the Fund’s foreign currency exposure and may use derivatives for portfolio management purposes.
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 (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 | Barrow Hanley Concentrated Global Share Fund |
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.
Pendal Institutional Limited has made the decision to appoint Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley) to manage a portion of the international shares for the Funds as a delegated investment manager. This change will take effect on 31 October 2023.
As a result, effective from 31 October 2023, the international shares of the Funds will now be managed by Barrow Hanley in addition to J O Hambro Capital Management Limited and Pendal Institutional Limited.
Why are we making the change?
We have decided to implement this change because we believe it is in the best interests of investors and we expect the change will deliver improved investment outcomes for the Funds over the medium to long term.
What will stay the same?
The investment objective, benchmark and management fee for each Fund will remain unchanged.
What do you need to do?
No action is required.
If you have any questions about your investment or would like further information regarding the changes, please contact our Investor Services Team on 1300 346 821 (for Australian investors) or +612 9220 2499 (for overseas investors) from Monday to Friday, 8.30am to 5:30pm (Sydney time). For any questions regarding how this change may impact your own financial situation, we recommend that you speak to your financial advisor and/or tax accountant.
The Pendal Diversified Global Equity Fund (Fund) will terminate on Tuesday, 28 November 2023.
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 experienced consistent outflows and we consider that it has little prospect of significant growth in funds under management in the foreseeable future.
How this affects you?
We will terminate the Fund on Tuesday, 28 November 2023.
Any application requests received after 2:00pm (Sydney time) on Thursday 24 August 2023 will not be accepted.
We will continue to accept withdrawal and transfer requests up to 2:00pm (Sydney time), Monday 27 November 2023.
As soon as practicable after the Fund is terminated on Tuesday, 28 November 2023, 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, including any distribution of net income, will be paid directly to your nominated bank account on file on or around Friday, 15 December 2023 or shortly thereafter.
Details of any distribution paid to you will be included in your final distribution statement, which you will receive shortly after the distribution is paid. You will also receive an annual tax statement by the end of July 2024, following the end of the 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.
The Pendal European Share Fund (Fund) will terminate on Tuesday, 28 November 2023.
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 experienced consistent outflows and we consider that it has little prospect of significant growth in funds under management in the foreseeable future.
How this affects you?
We will terminate the Fund on Tuesday, 28 November 2023.
Any applications received after 2:00pm (Sydney time) on Thursday 24 August 2023 will not be accepted.
We will continue to accept withdrawal requests up to 2:00pm (Sydney time), Monday 27 November 2023.
As soon as practicable after the Fund is terminated on Tuesday, 28 November 2023, 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, including any distribution of net income, will be paid directly to your nominated bank account on file during the week commencing Monday, 11 December 2023 or shortly thereafter.
Details of any distribution paid to you will be included in your final distribution statement, which you will receive shortly after the distribution is paid. You will also receive an annual tax statement by the end of July 2024, following the end of the 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.
The Pendal American Share Fund (Fund) will terminate on Tuesday, 28 November 2023.
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 experienced consistent outflows and we consider that it has little prospect of significant growth in funds under management in the foreseeable future.
How this affects you?
We will terminate the Fund on Tuesday, 28 November 2023.
Any applications received after 2:00pm (Sydney time) on Thursday 24 August 2023 will not be accepted.
We will continue to accept withdrawal requests up to 2:00pm (Sydney time), Monday 27 November 2023.
As soon as practicable after the Fund is terminated on Tuesday, 28 November 2023, 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, including any distribution of net income, will be paid directly to your nominated bank account on file during the week commencing Monday, 11 December 2023 or shortly thereafter.
Details of any distribution paid to you will be included in your final distribution statement, which you will receive shortly after the distribution is paid. You will also receive an annual tax statement by the end of July 2024, following the end of the 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.
Pendal Sustainable Balanced Fund – Class G (APIR: PDL4756AU, ARSN: 637 429 237)
Pendal Sustainable Balanced Fund – Class R (APIR: BTA0122AU, ARSN: 637 429 237)
Pendal Sustainable Balanced Fund – Class Z (APIR: PDL0478AU, ARSN: 637 429 237)
Pendal Sustainable Conservative Fund (APIR: RFA0811AU, ARSN: 090 651 924)
(the ‘Funds’).
Effective 8 June 2023, some of the exclusionary screens for the Funds’ Australian fixed interest component will be changing. Broadly, the changes apply:
- stricter screening definitions for fossil fuels by limiting the Funds’ exposure to issuers specifically involved in the exploration, extraction or refinement of coal, oil and gas; and
- stricter gross revenue thresholds by reducing the gross revenue threshold from 10% to 5% for issuers involved in the following business activities:
- Alcohol
- Gaming Facilities
- Non-controversial Weapons
- Pornography
- Uranium
- Fossil Fuels.
Why are we making the changes?
The changes ensure that the Funds remain true to label and are more closely aligned with investor expectations in relation to responsible investment funds where the market is moving towards stricter exclusionary screens.
What will stay the same?
Importantly, the stricter exclusionary screens do not impact the way in which we manage the Funds.
The Funds’ investment return objective remains unchanged.
Additionally, there is no change to the Funds’ management fee.
Funds’ exclusionary screens – Australian Fixed Interest
Effective 8 June 2023, the exclusionary screens for each Fund will be as follows:
The Fund’s Australian fixed interest investments will not invest in issuers directly involved in either of the following activities:
- tobacco production (including e-cigarettes and inhalers); or
- controversial weapons manufacture (including cluster munitions, landmines, biological or chemical weapons, nuclear weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, and/or non-detectable fragments).
The Fund’s Australian fixed interest investments will also not invest in issuers directly involved in any of the following activities, where such activities account for 5% or more of an issuer’s gross revenue:
- exploration, extraction or refinement of fossil fuels (specifically coal, oil and gas); or
- the production of alcohol; or
- manufacture or provision of gaming facilities; or
- manufacture of non-controversial weapons or armaments; or
- manufacture or distribution of pornography; or
- direct mining of uranium for the purpose of weapons manufacturing.
What do you need to do?
No action is required. You will be able to continue to invest and withdraw from the Funds.
Updated Product Disclosure Statement (PDS)
An updated PDS for each Fund issued on 8 June 2023 along with our contact details should you have any questions is now available on www.pendalgroup.com.
Pendal Sustainable Australian Fixed Interest Fund – Class R (APIR: BTA0507AU, ARSN: 612 664 730)
Pendal Sustainable Australian Fixed Interest Fund – Class W (APIR: PDL3438AU, ARSN: 612 664 730)
(the “Fund”)
Effective 8 June 2023, some of the Fund’s exclusionary screens will be changing. Broadly, the changes apply:
- stricter screening definitions for fossil fuels by limiting the Fund’s exposure to issuers specifically involved in the exploration, extraction or refinement of coal, oil and gas; and
- stricter gross revenue thresholds by reducing the gross revenue threshold from 10% to 5% for issuers involved in the following business activities:
- Alcohol
- Gaming Facilities
- Non-controversial Weapons
- Pornography
- Uranium
- Fossil Fuels.
Why are we making the changes?
The changes ensure that the Fund remains true to label and is more closely aligned with investor expectations in relation to responsible investment funds where the market is moving towards stricter exclusionary screens.
What will stay the same?
Importantly, the stricter exclusionary screens do not impact the way in which we manage the Fund.
The Fund’s investment return objective remains unchanged and the Fund will continue to aim to provide a return (before fees, costs and taxes) that exceeds the Bloomberg AusBond Composite 0+Yr Index by 0.75% p.a. over rolling 3 year periods.
Additionally, there is no change to the Fund’s management fee.
Fund exclusionary screens
Effective 8 June 2023, the Fund’s exclusionary screens will be as follows:
The Fund will not invest in issuers directly involved in either of the following activities:
- tobacco production (including e-cigarettes and inhalers); or
- controversial weapons manufacture (including cluster munitions, landmines, biological or chemical weapons, nuclear weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, and/or non-detectable fragments).
The Fund will also not invest in issuers directly involved in any of the following activities, where such activities account for 5% or more of an issuer’s gross revenue:
- exploration, extraction or refinement of fossil fuels (specifically coal, oil and gas); or
- the production of alcohol; or
- manufacture or provision of gaming facilities; or
- manufacture of non-controversial weapons or armaments; or
- manufacture or distribution of pornography; or
- direct mining of uranium for the purpose of weapons manufacturing.
What do you need to do?
No action is required. You will be able to continue to invest and withdraw from the Fund.
Updated Product Disclosure Statement (PDS)
An updated PDS issued on 8 June 2023 along with our contact details should you have any questions is now available on www.pendalgroup.com.
The Pendal Japanese Share Fund (Fund) will terminate with immediate effect on Wednesday, 5 April 2023.
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 Wednesday, 5 April 2023.
Any applications, transfers or withdrawal requests received after 4:00pm (Sydney time) on Wednesday, 5 April 2023 will not be accepted.
As soon as practicable after the Fund is terminated on Wednesday, 5 April 2023, 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 during the week commencing Monday, 24 April 2023 or shortly thereafter.
We expect that termination of the Fund will result in a distribution of the net income of the Fund. Details of the distribution will be included in your distribution statement for the month of April 2023. You will also receive an annual tax statement following the end of the financial year.
Questions?
If you have any questions, please contact our Investor Relations Team during business hours on 1300 346 821.
The Pendal MicroCap Opportunities 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 1.48% p.a. of the assets of the Fund.
The correct average annual performance fee over that period is 1.58% p.a., a difference of 0.10%.
Based on the estimate of 1.58% p.a. for an investment of $50,000 in the Fund, the performance fee would be $790 ($50,000 * 1.58% p.a. = $790), and not $740 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.