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A defensive Aussie bond fund that delivers market-leading
performance with positive environmental and social outcomes.
Strong performance One of the best-performing composite bond funds in the market.^ An institutional-grade portfolio that plays a role in any portfolio due to active risk management – the hallmark of Pendal’s seasoned Bond, Income and Defensive Strategies team.

^ First quartile in Morningstar’s Australia Fund Bonds - Australia category for the three years to June 30, 2021 and since inception (Aug 3, 2016).

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Defensive and diversifying The strategy protects on the downside while also participating in risk-on environments to ensure clients get maximum benefit from their allocation to a low-yielding sector. Read more
Invest in sustainable and impact bonds One of the only sustainable, actively-managed fixed income solutions of its kind. Invests in sustainable bonds screened for environmental, social and governance (ESG) factors and impact bonds designed to drive positive change and strong returns. Read more

What is Pendal Sustainable Australian Fixed Interest Fund?

Portfolio manager George Bishay manages one of the only sustainable, actively-managed fixed income solutions of its kind.^^ In this short video George explains the strategy in plain language.

^^ One of only three Australian bond funds considered sustainable out of 33 funds in Zenith’s Australian bond universe.

Our performance

The strategy has delivered strong performance — not just relative to other sustainable funds, but to the entire Australian core bond universe. This institutional-grade strategy can play a role in all portfolios due to the time-tested, active risk management processes run by our seasoned team.

The fund aims to provide a return (before fees, costs and taxes) that exceeds the Bloomberg AusBond Composite 0+ Yr Index by 0.75% pa over rolling 3-year periods.

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Return
(3-year p.a., before fees and tax)

Source: Pendal. Past performance is not a reliable indicator of future performance. For performance of the fund over the last 1,3 and 5 years, please refer to the Fund Performance table below.

Benchmark return
(3-year p.a.)

Source: Pendal

Impact on society and the environment

About 40 per cent of the strategy is invested in impact bonds which aim to generate both a financial return and a positive impact on society. Many of these bonds are designed to advance the United Nations Sustainable Development Goals. Impact is recorded at the fund level, providing a tangible record of contribution. Recent investments include National Housing Finance and Investment Corporation social bonds which provide low-cost finance to community housing providers, putting a roof over the head of low-income and disadvantaged Australians.

Read Kerry and Steven’s story

Calculate your impact*

Here are some of the ways Pendal Sustainable Australian Fixed Interest Fund is making the world a better place (data current at September 30, 2021). Calculator results are indicative only. Actual results may differ from forecasts provided.

The Fund size averaged about $376 million in the year to September 2021 (and reached $611m million in December 2021).

Enter an amount to find out what your personal impact could be:

$

An investment of A$ 376,000,000 in Pendal Sustainable Australian Fixed Interest Fund...

33,713

MWh/year renewable energy generated (equivalent to annual electricity use of 7,335 Australian households)

20,635

tCO2e GHG emissions avoided (equivalent to taking 9,073 cars off the road annually)

868,720

litres of water cleaned, recycled or treated per annum

128

hectares of forest restored (equivalent to 72 Melbourne Cricket Ground-sized stadiums)

8,910

underprivileged students educated*

2,039

microfinance loans made to financially underserved entrepreneurs from developing nations*

718

loans made to female-owned micro, small and medium enterprises (MSME) with little access to formal sources of financing*

399

teachers trained in developing nations*

299

small-scale farmers supported with improved agricultural technology*

4,878

people with access to Information & Communication technology in developing nations & remote regions*

434

social/affordable housing*

177,668

passenger trips per annum on low carbon transport


(*) The outcomes displayed by this calculator are based on projections provided by the issuers of bond securities (Issuers) held by the Pendal Sustainable Fixed Interest Fund (Fund). Information provided by this calculator is indicative only and should not be relied upon when making an investment decision or recommendation in relation to the Trust. While we have used every effort to ensure the assumptions on which the projections are based are reasonable, the information provided to us by the Issuers may be inaccurate or may not take into account known or unknown risks and uncertainties. Actual results may differ from the projections and subsequent changes in circumstances may occur at any time that impact the accuracy of the results. Past performance is not a reliable of future performance. The impact numbers are based on data from April 1, 2020 to March 31, 2021.

Our approach

Australians increasingly expect their investments to meet both financial objectives and community expectations on environmental, social and governance (ESG) issues. But we also believe sustainability considerations are important for the quality and robustness of a portfolio’s securities — and ultimately drive higher and more stable returns over the long term. Pendal Sustainable Australian Fixed Interest Fund is one of the only sustainable, actively-managed fixed income solutions of its kind.^^ The strategy is an institutional-grade portfolio of securities vetted through our in-house ESG screens. It is designed to achieve strong performance and a measureable positive impact on social and environmental initiatives. It’s managed by Pendal’s well-regarded fixed income boutique and backed by the resources of our equities, diversifieds and responsible investming teams including our wholly-owned sustainable investment business Regnan.

^^ One of only three Australian bond funds considered sustainable out of 33 funds in Zenith’s Australian bond universe.

A diverse range of investments

Pendal Sustainable Australian Fixed Interest Fund invests in a diverse range of securities including Australian government and semi-government bonds, sustainably-screened corporate bonds and ESG thematic impact bonds (climate, social and sustainable). We apply active management techniques including an analysis of ESG factors on potential performance. Opportunities are then identified at sector, issuer, security, duration and yield curve levels, supported by top-down and bottom-up research. The fund features two ESG screening processes:

  • A negative screen which prevents the fund investing in businesses that earn more than 10 per cent of revenue from products such as tobacco, weapons, uranium, pornography, gaming or thermal coal.
  • A sustainability screen which leverages expertise within Pendal’s wholly owned responsible investing leader Regnan for Australian issuers and MSCI for global issuers. The fund is designed to benefit from the rise in social and green bond issuance through greater allocation to primary issuance compared to many vanilla investment funds.

Active tilt to impact bonds

About 40 per cent of the strategy is invested in “impact bonds” which aim to generate both a financial return and a positive impact on society. Impact investing is among the latest developments in the evolution of responsible investing. Ethical funds started by screening out businesses such as tobacco growers, casinos and weapon makers. Today most investors use Environmental, Social and Governance (ESG) factors as a standard form of analysis. Impact investing goes further, recognising that portfolios can be biased towards securities that generate positive outcomes for the world, while also delivering strong returns. Impact is recorded at the fund level, providing a tangible record of contribution. Examples of recent Pendal SAFI investments in green or social bonds include:

  • NSW Treasury Corporation Green Bond — funds green projects across the State including low-carbon transport and buildings, renewable energy and land conservation.
  • International Finance Corporation Social Bond — supports projects such as the IFC’s Banking on Women and Inclusive Business programs which benefit people in emerging markets including women and low-income communities with limited access to essential services.
  • European Investment Bank Climate Awareness Bond — Helps fund renewable energy projects across Europe including as offshore wind farm in Portugal, a lithium-ion battery factory in Poland and an energy-efficient shopping centre and railway station in Finland.
  • Lendlease 2027 Green Bond — Proceeds support green buildings across Lendlease’s global portfolio including Barangaroo in Sydney and buildings in Chicago, London and Singapore.
Pendal’s Impact Bond Process

Assessment
of Issuer

  • Credit quality of issuer
  • Issuer is a sustainable leader and part of the investable universe
  • Valuation of the bond

Use of
proceeds

The underlying projects must meet our expectations and have targeted environmental and social outcomes in addition to financial returns.

Project
selection &
management

There is a sufficiently independent or qualified process for ensuring new projects fit within the scope of the bond and they are managed appropriately.

Independent
review

Independent verification or certification prior to issuance Third party auditing or review to confirm ongoing compliance

Impact
Reporting

We monitor and record impact reporting, engaging with issuers about our expectations

A seasoned team with a time-tested process

Co-portfolio managers Tim Hext and George Bishay have more than 50 years of combined experience in investment management. Tim has extensive experience in banking, financial markets and funding and manages Australian bond portfolios for Pendal’s Bond, Income and Defensive Strategies (BIDS) team. George Bishay manages credit, fixed interest and enhanced cash portfolios for the BIDS team, including Regnan Credit Impact Trust. George was awarded “Alpha Manager” status in 2019 by Money Management publisher FE fundinfo. The award recognised George’s ability to create risk-adjusted alpha over his career-long track record in the asset management industry. Led by Vimal Gor, Pendal’s 15-person BIDS boutique is one of the most experienced and well-regarded fixed income teams in Australia. The team manages more than $20 billion in assets. In 2020 the BIDS team won the Australian Fixed Interest category in the Zenith awards. In addition, Pendal has a strong pedigree in responsible investing. Our portfolio managers are supported by inhouse ESG experts including our wholly-owned Regnan sustainable investment business.

How are investments mapped to
UN Sustainable Development Goals?
Here are some examples:

IFC Social Bond IBRD Green Bond

IFC Social Bond

Australian Catholic University Sustainable Bond IFC Social Bond

Australian Catholic University Sustainable Bond IFC Social Bond IADB EYE Social Bond

IFC Social Bond

IBRD Green Bond Aquasure Vic Desalination (matured)

NAB Climate Bond Westpac Climate Bond IBRD Green Bond Woolworths Green Bond Mitsubishi UFJ Green CBA Climate Bond

Australian Catholic University Sustainable Bond IADB EYE Social Bond

IFC Social Bond

Australian Catholic University Sustainable Bond NAB Climate Bond Westpac Climate Bond IBRD Green Bond Woolworths Green Bond Mitsubishi UFJ Green CBA Climate Bond

NAB Climate Bond Westpac Climate Bond CBA Climate Bond

Australian Catholic University Sustainable Bond NAB Climate Bond Westpac Climate Bond IBRD Green Bond Woolworths Green Bond CBA Climate Bond

Australian Catholic University Sustainable Bond
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NAB Climate Bond
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Westpac Climate Bond
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IFC Social Bond
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IBRD Green Bond
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IADB EYE Social Bond
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Woolworths Green Bond
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Aquasure Vic Desalination (matured)
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Mitsubishi UFJ Green
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CBA Climate Bond
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Source: https://sustainabledevelopment.un.org/sdgs. These are 13 of the 17 SDGs. The others are: Life Below Water, Life on Land, Peace and Justice Strong Institutions, Partnerships to achieve the Goal

Our team

George Bishay - Portfolio Manager

George Bishay

Portfolio Manager

                                   

Managing a mix of credit, fixed interest and enhanced cash portfolios, George holds a wealth of experience in portfolio management and credit analysis with a specific focus on Asset Back Securities, Industrials, Real Estate and Resources sectors. George has managed dedicated Sustainable fixed interest portfolios for a decade. He has also worked across numerous fixed income, credit and money market portfolios in portfolio management, credit analysis and dealing roles for over 20 years. Prior to this George worked in an accounting role for three years. In 2019 George was awarded the Alpha Manager status by Money Management’s parent, FE fundinfo, in recognition of his career-long performance in the asset management industry. George was one out of 11 Australia-based investment professionals included in this list of esteemed professionals across multiple asset classes, after being assessed on his ability to create risk-adjusted alpha (outperformance) over his entire track record. George obtained a Master’s degree in Business (Finance), a Bachelor’s degree in Business (Accounting & Finance) and a Graduate Diploma in Applied Finance and Investment. He has a Registered Representatives and Dealer Accreditation with the Australian Financial Markets Associations.

Sales

Tim North Ash - Head of Distribution, Pendal Group

Tim North Ash

Head of Distribution

Peter Lambos - Head of Institutional, Pendal Group

Peter Lambos

Head of Institutional 

Lee Hopperton - Head of High Net Worth Distribution, Pendal Group

Lee Hopperton

Head of High Net Worth Distribution

Matthew Rooney - Head of Bank & Insurance Distribution, Pendal Group

Matthew Rooney

Head of Bank & Insurance Distribution

Laurice Considine - Head of Independent Licensee Distribution, Pendal Group

Laurice Considine

Head of Independent Licensee Distribution

Jeremy Dean - Head of Regnan and Responsible Investment Distribution

Jeremy Dean

Head of Regnan and Responsible Investment Distribution

Fund performance

Significant features

The Pendal Sustainable Australian Fixed Interest Fund is an actively managed portfolio of Australian cash and fixed interest securities. The Fund aims to generate excess returns by investing in assets with superior sustainability credentials.

Fund objective

The Fund aims to provide a return (before fees, costs and taxes) that exceeds the Bloomberg AusBond Composite 0+ Yr Index by 0.75% p.a. over rolling 3 year periods.

Class R

Entry Price $0.0000
04.07.2022
Exit Price $0.0000
04.07.2022 History
Fact Sheets
Annual Report

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APIR code BTA0507AU
Buy Sell spread 0.14% (0.07%/0.07%)
Benchmark Bloomberg AusBond Composite 0+ Yr Index
Risk level Low to Medium
Risks An investment fund is subject to a number of risks. For a detailed description of these risks please refer to the PDS.
Distribution Frequency Quarterly
Distribution (CPU) 0.0000
Distribution History View history
MIT Notice View history

Source of fund performance data: Pendal. Past performance is not a reliable indicator of future performance. This information is for general information and is not to be regarded as a securities recommendation. Where performance returns are quoted “After fees” then this assumes reinvestment of distributions and is calculated using exit prices which take into account management costs but not tax you may pay as an investor. Where “Growth” returns are shown, these represent the percentage change in the value of units in the fund excluding any distributions paid. “Distribution” returns equal the difference between the “Total return (After fees)”, and the Growth return. Where performance returns are quoted “After fees and tax”, they are calculated using exit prices which take into account management costs and taxes paid within the trust up to a maximum of 15%. Where performance returns are quoted “Before fees and tax”, they exclude the effects of management costs and any taxes. You can view our Unit Pricing Discretions Policy here.

Important Updates

25/11/2021 Re-classification of Units