Responsible Investing

Pendal is an investment manager with a proud 35-year heritage in and ongoing commitment to leadership in responsible investment (RI).

While we offer a range of innovative product solutions to meet client RI-related needs, as a fiduciary and corporate citizen, our approach seeks to embed RI practices across all of our active management practices.

We view effective management of our impact upon the environment, the community and other stakeholders as critical to our continued ability to deliver sustainable value to our clients, employees and our shareholders.

To meet our duties as a fiduciary we consider the impacts from environmental, social and governance (ESG) risks on the investments made on behalf of our clients.

Pendal has a Responsible Investments team dedicated to the implementation of RI practices across the business.

We also full own Regnan, a sustainable investment funds manager and advisory supports Pendal through research, engagement and advisory services. In 2020 Regnan launched two impact investment funds. Find out more about Regnan here.

Read the Pendal Australia Responsible Investment and Stewardship 2021 Annual Report

Read the Pendal Group Climate Change Statement

Read the Pendal Group Human Rights Statement

Read Pendal Australia’s Responsible Investment Philosophy and Approach document

Read the Pendal Group Modern Slavery Statement

Environmental, Social and Governance integration

For many years Pendal has progressively factored ESG considerations systematically into our investment process across multiple asset classes. This includes research, analysis and due diligence, covering issues such as climate change, human capital and ethical conduct.

We have seen first-hand the potential for ESG issues to affect value, for example by creating new investment opportunities in the clean-tech solutions sector or through poor conduct having a material impact on the finance sector.

The way a company handles ESG issues can provide insights into quality of management and resilience as a business.

Where ESG considerations may impact the financial performance of an investment, those factors are taken into account as part of our active investment processes — in the same way we consider other potential risk factors.


Stewardship, or active ownership, is a natural extension of Pendal’s active approach to investment management.

As responsible stewards of the capital entrusted to us, we undertake regular engagement with investee companies and exercise our voting rights in the best interests of clients.

Through proxy voting and ongoing dialogue with the management of the companies in which we invest, we can manage risk, effect change and protect value over the long term.

We recognise that our actions and decisions can affect practices in the entities in which we invest, in turn affecting the environment, our stakeholders and the community. We have a duty and an interest in managing this influence.

Part of our stewardship activity includes working together with other investors, typically via a range of industry bodies and initiatives, to encourage greater uptake of responsible investment practices in the financial services sector and to support the management of ESG risks and opportunities.

Read more on our industry representation here

Read our Principles of Internal Governance and Asset Stewardship

View our Proxy Voting Policy here


Regnan is our fully-owned responsible investing business, specialising in research, engagement and advisory to support responsible investments.

Regnan expanded its capabilities into responsible investment funds management in 2020, backed by the considerable resources of Pendal Group.

The Regnan Global Equity Impact Solutions Fund invests in mission-driven companies we believe are well placed to solve the world’s biggest problems.

Managed by a four-person investment team based in London, the fund aims to outperform the broad global equity market over the long term by investing in companies that provide solutions for the growing, unmet sustainability needs of society and the environment.

Regnan Credit Impact Trust — available only in Australia — invests in Australian fixed income securities, with a focus on impact bonds that generate social and environmental outcomes, alongside returns.

Both funds are distributed in Australia by Pendal Group

While Pendal Group only assumed full ownership of Regnan in February 2019, we have a long history with Regnan dating back to 2001 through Pendal’s association with BT Financial Group.

The Regnan team of highly experienced analysts and consultants has an average of 16 years experience in responsible investment, providing services to support ESG integration, sustainability-themed and impact investing.

Pendal is one of a number of institutional investors represented in Regnan’s collective engagement program, which sees Regnan undertake outcomes-focused engagement with listed companies across a wide range of issues with the potential to affect financial value.

Regnan continues to offer services independently.

Visit Regnan’s website

Read more about how Regnan supports Pendal Group

Sustainable and Impact Investment Products

Pendal has a long history in managing dedicated strategies to meet clients’ ethical and sustainability criteria and we have recently expanded our offering to impact investment strategies, through Regnan.

The first dedicated product, the Pendal Sustainable Balanced Fund, was launched by the Bankers Trust group in 1984 as the BT Australia Charities Trust.

Today, our suite of funds and tailored mandates meet the needs of the growing number of clients interested in investing in a manner consistent with their values or interest in sustainability.

We currently have some A$3.3 billion (as at December 31, 2020) in funds under management in solutions across asset classes.

Our Sustainable Series funds use exclusionary screening to avoid certain activities or industries, and poor ESG performers, while allocating capital to companies identified as sustainability leaders or those involved in industries which contribute to social and environmental needs.

Through its research and advisory, Regnan plays a key role in product design and shaping investment guidelines to ensure a true-to-label approach.

Our Sustainable series comprises:

Pendal Horizon Fund
Pendal Sustainable Australian Share Fund
Pendal Sustainable Balanced Fund
Pendal Sustainable Conservative Fund
Pendal Sustainable Australian Fixed Interest Fund
Pendal Sustainable International Fixed Interest Fund
Pendal Sustainable International Share Fund
Pendal Sustainable Future Australian Share Portfolio
Pendal Multi-Asset Target Return Fund

The above products have been certified by RIAA, meeting the strict criteria of the organisation’s Responsible Investment Certification Program. Visit for more information about the program and our certified products.

We also work with institutional investor clients to tailor mandates to meet the needs and interests of beneficiaries.

Tailored mandates we have developed with clients include low carbon portfolios and portfolios with faith-based exclusions. Find our more here.

PRI reporting and assessment

Pendal, J O Hambro Capital Management and Regnan are signatories to the Principles for Responsible Investment (PRI), the leading global investor network and proponent of RI.

We are committed to implementing the Six Principles.

The principles are a voluntary and aspirational set of investment principles that offer guidance on possible actions for incorporating ESG issues into investment practice.

The PRI requires signatories to provide annual disclosures on their RI practices to demonstrate the implementation of the principles and offer them for assessment. Asset managers receive an assessment report.

The 2020 Summary Scorecard for Pendal Australia (see below) shows a solid standing in terms of our overall practices in governance and active stewardship.

You can download the summary scorecard here. A copy of the full report is available on request.