Changes to Fund buy-sell spread notification

Important Updates

Pendal Dynamic Income Fund (APIR: BTA8657AU, ARSN 622 750 734)
Pendal Enhanced Credit Fund (APIR: RFA0100AU, ARSN 089 937 815)
Pendal Fixed Interest Fund (APIR: RFA0813AU, ARSN 089 939 542)
Pendal MicroCap Opportunities Fund (APIR: RFA0061AU, ARSN 118 585 354)
Pendal Monthly Income Plus Fund (APIR: BTA0318AU, ARSN 137 707 996)
Pendal Sustainable Australian Fixed Interest Fund (APIR: BTA0507AU, ARSN 612 664 730)

Effective 30 June 2020, prior notice will no longer be provided in the event of a material increase to the buy-sell spreads of the above mentioned funds (Funds). Section 6, ‘Fees and costs’, of the PDS of the Funds has been updated to reflect these changes.

The buy-sell spread is an additional cost to you and is generally incurred whenever you invest in a Fund. The buy-sell spread is retained by the Fund (it is not a fee paid to us) and represents a contribution to the transaction costs incurred by the Fund such as brokerage and stamp duty, when the Fund is purchasing and selling assets as a result of applications to or redemptions from the Fund. The buy-sell spread also reflects the market impact of buying and selling the underlying securities in the market.

During periods of heightened volatility, as experienced during the COVID-19 pandemic, the cost of buying and selling securities can increase significantly, and suddenly. As a result, a Fund’s buy-sell spread may need to be adjusted to reflect the increase in transaction costs at short notice. This is to ensure all unit holders are treated fairly by attributing the costs of trading securities to those unit holders who are buying and selling units in a Fund.

You should review current buy-sell spread information before making a decision to invest or withdraw from a Fund. Please refer to our website and click ‘Products’ for the latest buy-sell spread for each of the Funds.