Changes to Fund buy-sell spread

Pendal Dynamic Income Fund

Important Updates

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

Effective 19 March 2020, the Pendal Dynamic Income Fund (Fund)’s buy-sell spread will increase from 0.14% with 0.07% payable on application and 0.07% payable on withdrawal to 1.02%, with 0.07% payable on application and 0.95% payable on withdrawal.

The buy-sell spread is an additional cost to you and is generally incurred whenever you invest in the 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. The buy-sell spread also reflects the market impact of buying and selling the underlying securities in the market. Importantly, the buy-sell spread helps to ensure different unit holders are being treated fairly by attributing the costs of trading securities to those unit holders who are buying and selling units in the Fund.

Due to the impacts of COVID 19, investment markets have experienced substantial increases in volatility and substantially reduced liquidity in some markets, resulting in increases in trading costs in fixed income markets. The Fund invests primarily in Australian issued investment grade corporate bonds and the change in buy-sell spread does not reflect a deterioration in the credit quality of these assets.

Following a review by the Responsible Entity, Pendal has determined to increase the Fund’s buy-sell spread to 1.02%, of which 0.07% is payable on application and 0.95% is payable on withdrawal. Pendal will continue to monitor market conditions and review and update the buy-sell spread regularly as required. You should therefore review the current buy-sell spread information before making a decision to invest or withdraw from the Fund.

Please refer to our website and click ‘Products’ for the Fund’s latest buy-sell spread.