Notice of PDS Update: Pendal Dynamic Income Fund (Class R, W)

Changes to the Pendal Dynamic Income Fund effective from 5 December 2024:

• Pendal Dynamic Income Fund – Class R (APIR: BTA8657AU ARSN: 622 750 734)
• Pendal Dynamic Income Fund – Class W (APIR: PDL7550AU ARSN: 622 750 734)

We are implementing changes to the Pendal Dynamic Income Fund (the Fund) with effect from 5 December 2024.

The Fund is an actively managed portfolio of fixed interest securities that invests primarily in Australian issued investment grade corporate bonds, international credit and emerging markets sovereign debt.

Effective 5 December 2024, the Fund will be authorised to invest in high yield credit, as part of its international credit exposure. The Fund’s international credit (including high yield) exposure will be obtained through indices, primarily using derivatives.

With the addition of high yield credit, the Fund will be allowed to purchase non-investment grade international credit securities. International credit securities (including high yield) may be rated non-investment grade at the time of purchase.  All Australian credit securities, including corporate bonds, will continue to be rated investment grade at the time of purchase and can continue to be held if the corporate bond is downgraded after purchase. The Fund’s maximum investment exposure to Australian and international non-investment grade credit securities (in aggregate) is limited to 15% of the value of the Fund.

Effective 5 December 2024, the Fund will also be able to implement direct active currency management as part of its investment strategy when we believe market conditions are supportive.

The leverage obtained from investing in derivatives to manage interest rate duration or active currency will not be limited. However, leverage obtained from investing in Australian and international credit derivatives and sovereign emerging markets derivatives is limited to a maximum of 20% above the value of the Fund.

The changes are expected to enhance the Fund’s investment returns and not impact the Fund’s overall risk profile. The Fund will continue to be managed to its investment objective of ‘aims to provide a return (before fees, costs and taxes) that exceeds the RBA Cash Rate by 2-3% p.a. over the medium term.’

We have reissued the Fund’s Product Disclosure Statement (PDS) to reflect these changes. A copy of the Class R’s PDS can be found on our website at Pendal Dynamic Income Fund – PDS – Class R.pdf.

Please call us on 1300 246 821 to obtain a copy of Class W’s PDS.

Questions? 

If you have any questions, please contact our Investor Relations Team during business hours Monday to Friday on 1300 346 821.