Standard Risk Measure Changes

31 May 2022

Changes to Funds’ Standard Risk Measure

Effective 31 May 2022, we are changing the Standard Risk Measure (SRM) of the Funds listed in the table below.

An updated Product Disclosure Statement (PDS) for each Fund, including the new SRM, will be available on or around 31 May 2022 on www.pendalgroup.com. If you would like a hard copy of the PDS, please contact us.

For the Funds indicated with an asterisk (*) in the table below, the change in SRM has also resulted in a change to the target market indicator for a consumer’s risk and return profile in the Fund’s Target Market Determination (TMD). An updated TMD for each of these Funds, including the new SRM and target market indicator, will be available on www.pendalgroup.com/ddo.

What is a Standard Risk Measure?

A fund’s SRM is a simple risk descriptor to help investors compare the fund’s potential level of investment risk. More specifically, it is an estimate of how many years a negative annual return may be expected for a fund over any 20-year period. The SRM is calculated based on a fund’s asset allocation as well as capital market assumptions about the likely returns and volatility of those asset classes over the longer term.

Importantly, the SRM is not a complete assessment of all forms of investment risk. It is only one way of measuring the potential risk of an investment. For example, the SRM does not detail what the size of a negative return could be, or the potential for a positive return to be less than what an investor may require to meet their financial objectives. It is also based on gross returns and therefore, does not take into account the impact of fees, costs and tax on the likelihood of a negative return.

Why are the Standard Risk Measures changing?

The SRM changes are a change in risk classification only, resulting from changes to Pendal’s SRM calculation methodology to include forward-looking assumptions. There is no change to the investment strategy or actual risk of the Funds. Each Fund’s underlying asset allocation, investment return objective and benchmark remain unchanged. 

If you have any questions about your investment or would like further information regarding the changes, please contact our Investor Services Team on 1300 346 821 (for Australian investors) or +612 9220 2499 (for overseas investors) from Monday to Friday, 8.30am to 5.30pm (Sydney time). 

This Important Update 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 31 May 2022. It is not to be published, or otherwise made available to any person other than the party to whom it is provided.

PFSL is the responsible entity and issuer of units in the Pendal Funds specified in this Important Update. Product disclosure statements (PDSs) are available for the Funds and can be obtained by calling 1800 346 821 or visiting www.pendalgroup.com. You should obtain and consider the PDS for each Fund before deciding whether to acquire, continue to hold or dispose of units in any of the Funds. An investment in the Funds is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested.

This Important Update is for general information purposes only. It 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.