Changes to the Fund – Update

Pendal Concentrated Global Share Fund (APIR BTA0503AU) (ARSN 613 608 085)

Delegated Investment Manager

As stated in our notice of 13 September 2023, we have decided to appoint Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley) as the Fund’s delegated investment manager. As the Funds’ delegated investment manager, Barrow Hanley will have responsibility for the day-to-day investment management of the Fund.

Barrow Hanley’s appointment will take effect from 31 October 2023.

Pendal Institutional Limited (Pendal) will continue to act as the investment manager of the Fund.

We wish to provide further details regarding the appointment and the potential impact to investors. This update should be read in conjunction with the notice of 13 September 2023.

Transaction costs

The appointment of Barrow Hanley 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 transaction taxes involved in these transactions which will be borne by the Fund.

As a result of Barrow Hanley’s appointment, Pendal estimates that the Fund will incur total transaction costs of 0.12% (including brokerage, transaction taxes and fees). This will be a one-off cost that covers the sale of current securities and the purchase of securities selected by Barrow Hanley. 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 are in the best interests of investors.

Tax implications

Pendal does not provide notice of the tax implications of transactions within the portfolio to investors. This was, however, a factor in our consideration of whether the appointment of Barrow Hanley is in the best interests of investors.

At 30 June 2023, the Fund had net assets of $602.5M of which $120.1M were net unrealised capital gains (before the application of the 50% CGT discount). The Fund has no revenue or net capital losses brought forward from prior years to offset any realised capital gains from the sale of securities as we transact to the new portfolio.