The Pendal Focus Australian Share 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 0.09% p.a. of the assets of the Fund.

The correct average annual performance fee over that period is 0.14% p.a., a difference of 0.05%.

Based on the estimate of 0.14% p.a. for an investment of $50,000 in the Fund, the performance fee would be $70 ($50,000 * 0.14% p.a. = $70), and not $45 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.

The Pendal Australian Long/Short Fund’s (Fund) average performance fee for the last five financial years ending on 30 June 2022, disclosed in the Fund’s Product Disclosure Statements issued on 3 October 2022 and 11 January 2023 was incorrectly stated as 0.14% p.a. of the assets of the Fund.

The correct average annual performance fee over that period is 0.26% p.a., a difference of 0.12%.

Based on the estimate of 0.26% p.a. for an investment of $50,000 in the Fund, the performance fee would be $130 ($50,000 * 0.26% p.a. = $130), and not $70 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.

Investors are advised of the following change to the March 2023 distributions.

The Funds set out below will pay their distribution (if any) for the March quarter on or around 31 March 2023 for the period ending 24 March 2023. This change will be for March 2023 only.

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

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

Pendal funds impacted if paying a March distribution

This Important Update has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and the information contained within is current as at 7 February 20230. It is not to be published, or otherwise made available to any person other than the party to whom it is provided.

PFSL is the responsible entity and issuer of units in the Pendal funds specified in this Important Update. A PDS or IM is available for the funds and can be obtained by calling 1800 346 821 or visiting www.pendalgroup.com. You should obtain and consider the PDS or IM before deciding whether to acquire, continue to hold or dispose of units in the funds. An investment in the funds is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested.

This Important Update is for general information purposes only. It should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It has been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, before acting on this information recipients should consider its appropriateness having regard to their individual objectives, financial situation and needs. This information is not to be regarded as a securities recommendation.

Effective on or around 23 January 2023, Perpetual Limited (Perpetual) will acquire Pendal Group Limited (Pendal) by way of a scheme of arrangement. As part of this arrangement, Pendal Fund Services Limited, Pendal Institutional Limited and J O Hambro Capital Management Limited (JOHCM) will become wholly owned subsidiaries of Perpetual Limited but will continue to operate in the same way they have always done in the management of your money.

Who is Perpetual?
Perpetual is an ASX-listed, diversified financial services company which has been serving clients since 1886. Perpetual is one of Australia’s largest wealth managers, an expert adviser to high net-worth individuals, families and businesses, and a leading provider of corporate trustee services, with offices across Australia, Asia, Europe and the US.

What does this change mean?
There are no changes in relation to your investment. Pendal’s investment team independence and its Pendal, J O Hambro and Regnan brands will be retained. There will also be no change to the reporting you receive on your investment or the way you access information.

What do you need to do?
You will not have to do anything as a result of the change in ownership.
If you have any questions or wish to find out more, contact our Investor services team on 1300 346 821.

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

Effective on and from 11 January 2023, the existing units of the Pendal Dynamic Income Fund (the Fund) will be known as the Class R, class of units in the Pendal Dynamic Income Fund.

This is simply a change of name for your existing class of units. Importantly, there will be no changes to the terms of your investment or your rights and entitlements as an investor in the Fund.

What does this change mean?

As there are no changes to the terms of your investment, you will be able to continue to invest or withdraw from the Fund as you have always done.

A new Product Disclosure Statement (PDS) for the Pendal Dynamic Income Fund – Class R is available at www.pendalgroup.com. 

Effective 3 October 2022 we are changing the Fund’s administrator from Westpac Financial Services Group Limited to The Northern Trust Company.

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

We have also updated the PDS to reflect the past financial year’s fees and costs.

Effective 3 October 2022 we are changing the Fund’s custodian from the Hong Kong and Shanghai Banking Corporation Limited, Sydney Branch (HSBC) to the Northern Trust Company.

Also effective 3 October 2022 we are changing the Fund’s administrator from Westpac Financial Services Group Limited to The Northern Trust Company.

31 May 2022

Changes to Funds’ Standard Risk Measure

Effective 31 May 2022, we are changing the Standard Risk Measure (SRM) of the Funds listed in the table below.

An updated Product Disclosure Statement (PDS) for each Fund, including the new SRM, will be available on or around 31 May 2022 on www.pendalgroup.com. If you would like a hard copy of the PDS, please contact us.

For the Funds indicated with an asterisk (*) in the table below, the change in SRM has also resulted in a change to the target market indicator for a consumer’s risk and return profile in the Fund’s Target Market Determination (TMD). An updated TMD for each of these Funds, including the new SRM and target market indicator, will be available on www.pendalgroup.com/ddo.

What is a Standard Risk Measure?

A fund’s SRM is a simple risk descriptor to help investors compare the fund’s potential level of investment risk. More specifically, it is an estimate of how many years a negative annual return may be expected for a fund over any 20-year period. The SRM is calculated based on a fund’s asset allocation as well as capital market assumptions about the likely returns and volatility of those asset classes over the longer term.

Importantly, the SRM is not a complete assessment of all forms of investment risk. It is only one way of measuring the potential risk of an investment. For example, the SRM does not detail what the size of a negative return could be, or the potential for a positive return to be less than what an investor may require to meet their financial objectives. It is also based on gross returns and therefore, does not take into account the impact of fees, costs and tax on the likelihood of a negative return.

Why are the Standard Risk Measures changing?

The SRM changes are a change in risk classification only, resulting from changes to Pendal’s SRM calculation methodology to include forward-looking assumptions. There is no change to the investment strategy or actual risk of the Funds. Each Fund’s underlying asset allocation, investment return objective and benchmark remain unchanged. 

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). 

This Important Update has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and the information contained within is current as at 31 May 2022. It is not to be published, or otherwise made available to any person other than the party to whom it is provided.

PFSL is the responsible entity and issuer of units in the Pendal Funds specified in this Important Update. Product disclosure statements (PDSs) are available for the Funds and can be obtained by calling 1800 346 821 or visiting www.pendalgroup.com. You should obtain and consider the PDS for each Fund before deciding whether to acquire, continue to hold or dispose of units in any of the Funds. An investment in the Funds is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested.

This Important Update is for general information purposes only. It should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It has 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.

31 May 2022

The Australian Securities and Investments Commission (ASIC) has issued updated fees and costs disclosure requirements through ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070 for Product Disclosure Statements issued on or after 30 September 2022.

The enhanced fees and costs disclosure requirements aim to provide investors with more consistent and comparable fees and costs across all managed investment products.

Pendal has elected for an early transition to the new fees and costs requirements. In accordance with the new requirements, Pendal has updated the fees and costs disclosure for all PDSs effective on or around 31 May 2022. Our Product Disclosure Statements should be read together with the Additional Information to the Product Disclosure Statements (collectively the ‘PDS’).

Changes to Pendal’s PDSs

The new requirements change how the fees and costs of the Fund are presented and the way in which certain fees and costs are calculated.

In our updated PDSs, the fees and costs section shows ongoing annual fees and costs under the following three categories:

1. Management fees and costs, consisting of the management (or issuer) fee and any indirect costs and expense recoveries that apply;
2. Performance fees (if applicable in the Fund); and
3. Transaction costs (if applicable).

Fees and costs related to certain investor activity, such as opening or closing your investment, contributing to your investment, withdrawing, switching and the buy-sell spread are also required to be disclosed in the fees and costs section of the PDS.

How do these changes impact investors?

The updated fees and costs requirements affect the way we disclose fees and costs and the methodology for calculating certain fees and costs.

Importantly, there are no new fees or costs, no increases to any fees being charged to investors, nor any changes in the way fees and costs are charged. This means that the returns of the Fund (and therefore, an investment in the Fund) are not impacted by these changes.

If you have any questions about your investment or would like further information regarding these 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).

This Important Update has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and the information contained within is current as at 31 May 2022. It is not to be published, or otherwise made available to any person other than the party to whom it is provided.

PFSL is the responsible entity and issuer of units in the Fund. A Product Disclosure Statements (PDS) is available for the Fund and can be obtained by calling 1800 346 821 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 the Fund. An investment in the Fund is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested.

This Important Update is for general information purposes only. It should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It has 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.

With effect from 31 May 2022, the “Pendal Horizon Fund” will be renamed the “Pendal Horizon Sustainable Australian Share Fund”.

The change of name is to further reflect the investment framework and responsible investment priorities of the Fund which extend beyond just ethical screens being applied and also the current name of the Fund does not inform it is an Australian equities and a sustainable fund.

There will be no changes to the investment strategy, objective or distribution frequency of the Fund.

An updated Product Disclosure Statement (PDS) providing information on the Fund will be issued on 31 May 2022 and made available on www.pendalgroup.com.