Pendal Global Select Fund

Product Name

Pendal Global Select Fund

Issuer

Pendal Group

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale, Institutional

Certified Since

2021

Asset Classes

International equities

Markets

Australia

Investment Approaches

Negative Screening, ESG Integration

It Includes:

  • Investment2 More sustainable companies

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 99 Pornography

It fully excludes:

  • Riaa icons 35 Tobacco

Overview

The Pendal Global Select Fund is designed for investors who want the potential for long-term capital growth from a concentrated portfolio of listed global equities, with an investment timeframe of 5 years or greater and are prepared to accept higher variability of returns. The investment manager recognises that ESG factors can create risks and opportunities for companies and as such incorporates ESG risks into their analytical framework and portfolio construction. Further, the Fund employs exclusionary screens to avoid investments in companies that cause significant social and/or environmental harm.


Description


The Fund’s strategy is based on a belief that stock markets are inefficient and aim to exploit market anomalies via an investment process that combines both top-down and bottom-up research. The investment manager's distinct “4-Dimensional” investment process (stocks, sectors, countries, time/change) focuses on the behaviour of each share price to determine whether the most important driver of each prospective investment is stock specific, sector or country-based. 
  
The investment manager recognises that ESG and sustainability factors can create risks and opportunities for companies and as such incorporates these into analysis and portfolio construction. For example, ESG analysis may consider: 
  • A company’s management of its ESG risks and opportunities, such as those relating to climate change, labour rights, and supply chain management; 
  •  The manner in which a company conducts its business and employs sustainability practices; 
  •  The extent to which a company’s products or services are beneficial to the environment and/or society; and 
  •  The extent to which a company’s products or services contribute to solutions to areas of social and environmental need. 

Further, the Fund employs exclusionary screens to avoid investments in companies that cause significant social and/or environmental harm. Specifically, the Fund will not invest in companies directly involved in either of the following activities: 
  •  tobacco production (including e-cigarettes and inhalers); or 
  •  controversial weapons manufacture (such as cluster munitions, landmines, biological or chemical weapons, nuclear weapons, blinding laser weapons, incendiary weapons, and/or non-detectable fragments). 
 The Fund will also not invest in companies which derive 10% or more of their total revenue directly from any of the following activities: 
  •  extraction, exploration, distribution, or refinement of fossil fuels, or fossil fuel-based power generation*;
  • production of alcoholic beverages;
  • manufacture, ownership or operation of gambling facilities, gaming services or other forms of wagering; 
  • manufacture of non-controversial weapons or armaments; 
  • manufacture or distribution of pornography; and 
  • uranium mining for the purpose of nuclear power generation. 
*Companies with a climate transition plan may be exempted from this exclusion, provided that they have in place a Paris Agreement aligned transition plan and produce climate-related financial disclosures annually, which in both cases we consider credible. We define fossil fuels as coal, oil and natural gas. 

Other products certified by the Responsible Investment Association Australasia (RIAA)

Pendal Horizon Fund (formerly Ethical Share Fund)

Pendal Multi-Asset Target Return Fund

Pendal Sustainable Australian Fixed Interest Fund

Pendal Sustainable Australian Share Fund

Pendal Sustainable Balanced Fund

Pendal Sustainable Conservative Fund

Pendal Sustainable Future Australian Share Portfolio

Pendal Sustainable International Fixed Interest Fund

Pendal Sustainable International Share Fund

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