Alternative investments sustainable and ethical screens

Pendal Sustainable Balanced Fund (APIR code: BTA0122AU, ARSN 637 429 237)

Effective 21 May 2020, sustainable and ethical investment practices in the Pendal Sustainable Balanced Fund (Fund) will be broadened to also include a portion of the Fund’s investments in alternative investments.  Sustainable and ethical investment practices are currently incorporated into the Fund’s Australian and international shares and Australian and international fixed interest allocation.

Alternative investments sustainable and ethical screens

For a portion of the Fund’s alternative investments component, the Fund will not invest in companies or issuers directly involved in the following two activities:

• tobacco production; and

• controversial weapons manufacture (such as cluster munitions, landmines, biological or chemical weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, and/or non-detectable fragments).

For a portion of the Fund’s alternative investments component, the Fund will also not invest in companies or issuers directly involved in the following activities, where such activities account for 10% or more of a company’s or issuer’s total revenue:

• the production of alcohol;

• manufacture or provision of gaming facilities;

• manufacture of non-controversial weapons or armaments;

• manufacture or distribution of pornography;

• direct mining of uranium for the purpose of weapons manufacturing; and

• extraction of thermal coal and oil sands production.

Investments will be reviewed regularly to ensure they remain within the sustainable and ethical screens of the Fund. If the review process identifies that an investment ceases to comply with the screens, the investment will usually be sold as soon as reasonably practicable having regard to the interests of investors, but this may vary on a case by case basis.