Changes to Fund – Update

Pendal Core Global Share Fund (APIR: RFA0821AU, ARSN 089 938 492)

Investment Manager

As stated in our notice of 22 November 2019, we have decided to replace AQR Capital Management, LLC (AQR) as the investment manager of the Pendal Core Global Share Fund (Fund) and appoint the Pendal Global Equities team. The change will take place on or around 21 February 2020.

We wish to provide further details regarding the change of manager and the potential impact to investors. This update should be read in conjunction with the notice of 22 November 2019.

Transaction costs

The change in investment manager will require the sale and purchase of securities within the Fund as we transition to the new portfolio. As is currently the case there will be costs such as brokerage and taxes involved in these transactions which will be borne by the Fund.

Pendal estimates that the total cost of changing the investment manager will be in the order of 0.35% to 0.45%. This will be a one off cost that covers: the sale of current securities; the purchase of securities selected by the Pendal Global Equities team; and the increase of the buy-sell spread detailed in our notice of 22 November 2019. This amount represents transaction costs incurred by the Fund and is not a fee paid to Pendal.

These costs were taken into account in assessing whether the proposed changes to the portfolio was in the best interests of investors.

Tax impact

Pendal does not provide advance notice of the tax impact of transactions within the portfolio to investors.

This was, however, a factor in our consideration of whether the proposal is in the best interests of investors. At 30 June 2019, the Fund had net assets of $181.7M of which $0.8M were net unrealised capital gains.

This article has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and the information contained within is current as at 13 December 2019. It is not to be published, or otherwise made available to any person other than the party to whom it is provided.

This article is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It has been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on this information, consider its appropriateness having regard to their individual objectives, financial situation and needs. This information is not to be regarded as a securities recommendation.

The information in this article may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this article is complete and correct, to the maximum extent permitted by law neither PFSL nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.

Any projections contained in this article are predictive and should not be relied upon when making an investment decision or recommendation. While we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.