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:	More sustainable companies
It has some level of screening for:	Alcohol Armaments Fossil fuels Gambling Pornography
It fully excludes:	Tobacco
Broker	Responsible Returns
URL	https://www.responsiblereturns.com.au/investment-options/pendal-global-select-fund/profile

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.

Performance results

Product holdings

Product documentation

Supporting documents

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The products featured on this site have all achieved certification under the Responsible Investment Association Australasia’s (RIAA) Responsible Investment Certification Program.

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What sets these investment products aside from regular ones on the market is they all have some type of responsible or ethical strategy applied to them.

At a minimum, their issuers explain these strategies in public documents and open their offices and books to third party verifiers who check these strategies are implemented according to what you read about them publicly.

You can also click through to see the underlying managers and / or stock holdings in each certified product as well as access a certified product’s recent performance results.

Stewardship & Impact

In July 2019, we lifted our requirements of certified products which we are phasing in over 18 months.

We now require that issuers have organisation-wide commitments to responsible investing and they exercise their responsibilities as stewards of your money - through engaging with companies to improve sustainability performance and voting on shareholder resolutions where possible. All certified products now need to at least avoid significant harm and their issuers will annually report against any sustainability-based claims made by their products. This uplift in program standards is part of our passion for, and on-going commitment to, responsible and ethical investing.

Even though we're lifting the bar, we know your convictions to doing good with your money may be higher and so we have served up our member's certified products with a large dose of transparency and independent verification, so that you can draw your own conclusions from reliable information and choose investments that best suit your individual needs.

*Information Disclosures

While all reasonable efforts are undertaken to ensure information and links on site are current there may be instances where information and documents are updated during the course certification (eg. PDS, Fact Sheet). Certified product issuers are required to update this information as soon as possible on the Responsible Returns site, but there may be some extenuating circumstances impacting timeframes.

The certification program may also assess information provided for certification based on proposed future changes to a responsible investment process that is in-line with Responsible Investment Association Australasia’s (RIAA) Responsible Investment Certification Program criteria. In such instances, members are similarly required to update this information on Responsible Returns within an agreed future timeframe. Old document versions may be reflected on site until this process is finalised.

Pendal Global Select Fund

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