Change of Exclusionary Screens

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:

1. 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
2. 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.