Pendal Sustainable Conservative Fund

Product Name

Pendal Sustainable Conservative Fund

Issuer

Pendal Group

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale, Institutional

Certified Since

2017

Asset Classes

Diversified / Multi-asset

Markets

Australia

Investment Approaches

Best in class screening, Negative Screening

It Includes:

  • Riaa icons 32 Green property
  • Riaa icons 12 Healthcare and medical products
  • Riaa icons 11 Impact investments
  • Riaa icons 10 Renewable energy and climate change solutions
  • Riaa icons 15 Social and sustainable infrastructure
  • Tree green background Sustainable land and agricultural management
  • Riaa icons 13 Sustainable transport
  • Riaa icons 31 Sustainable water

It fully excludes:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

Overview

The following text contains further information on the various labour, environmental, social and ethical considerations that we use when selecting, retaining or realising investments in the Fund and should be read in conjunction with the PDS. Sustainable and ethical investment practices are currently incorporated into the Australian and international shares and Australian and international fixed interest components of the Fund. All other investments by the Fund are not screened for sustainable or ethical investment practices. The Fund invests in securities that are considered to meet the Fund’s sustainable and ethical criteria. Our sustainable assessment process considers the extent to which a company or issuer manages its material environmental, social, and corporate governance (ESG) issues. Specifically, the assessment may consider issues such as: Environmental management • Management of environmental impacts through the implementation of best practice environmental techniques, technologies and product design • Environmental performance against a range of environmental indicators including for example, greenhouse gas emissions, energy and water use and environmental incidents • The capacity to consult key stakeholders in relation to activities that may have significant environmental impacts • Adoption of best practice with regards to management and disclosure of material risks and opportunities associated with climate change Social practices • Equal opportunity, anti-discrimination and industrial relations policies and practices • Staff incentives, development and training • Employee benefits and entitlements • Human capital management performance against a range of indicators, such as voluntary turnover and gender diversity in senior management • Products or services that provide positive social impacts such as improved health & community well-being, disease prevention, and education • Management of contractors and suppliers • Workplace health and safety performance against indicators such as fatalities and lost time injury frequency rate Corporate governance and business conduct • Codes of conduct and the extent of their integration into the company’s operations • Provision of regular and appropriate training • Whistleblower policies and procedures • Ethical conduct and performance of employees and officers – the extent to which companies are adopting principles in areas such as complying with the law, fair and open dealings and accepting responsibility for their actions • Product safety and consumer protection • Engagement practices with employees, shareholders and key community stakeholders Ethical practices Across the Australian and international shares and Australian and international fixed interest components, the Fund will not invest in companies or issuers with material business involvement in the following activities: • the production of tobacco or alcohol, • manufacture or provision of gaming facilities, • manufacture of weapons or armaments, • manufacture or distribution of pornography, • directly mine uranium for the purpose of weapons manufacturing, • extraction of thermal coal and oil sands production. We consider that a company or issuer has a material business involvement in an activity if 10% or more of its total revenue is derived from that activity. How these factors are taken into account when selecting investments Companies and issuers within each industry sector of the Australian shares, international shares, Australian fixed interest and international fixed interest benchmarks are assigned a sustainable and ethical rating relative to industry peers, based upon ESG and ethical factors. The investable universe consists of companies or issuers satisfying the sustainable and ethical rating process. Companies or issuers with higher sustainable ratings will typically be favoured to those with lower scores. Lower ranked companies or issuers will generally be excluded from the Fund’s investable universe. The criteria applied to the Fund’s investments may exclude some industry sectors, companies or issuers from the Fund’s ‘investable universe’. For this reason the Fund’s performance may vary when compared to other funds that do not apply sustainable screens in their investment process. This risk should be considered when deciding whether to invest in the Fund. The Fund’s compliance with the investment guidelines is reviewed regularly (usually monthly, but this timeframe is not fixed). If our review process identifies that an investment ceases to comply with the investment guidelines for the Fund, the investment will usually be sold as soon as reasonably practicable, having regard to the interests of investors (but this may vary on a case by case basis).


Description


Investing in this fund provides exposure to companies assessed as demonstrating and or/offering leading environmental and social practices, products and services, whilst avoiding companies that do not meet the Fund’s ethical guidelines.
 
 The Fund will not invest in companies with material business involvement in the following activities:
  • the production of tobacco or alcohol,
  • manufacture or provision of gaming facilities,
  • manufacture of weapons or armaments,
  • manufacture or distribution of pornography,
  • directly mine uranium for the purpose of weapons manufacturing,
  • extraction of thermal coal and oil sands production.
We consider that a company has a material business involvement in an activity if 10% or more of its total revenue is derived from that activity.
 
Positive screening means that we actively seek investments in industries and companies assessed as demonstrating and/or offering leading environmental and social practices, products or services. 

 Leading Industries
 Industries offering products and services that provide a direct benefit to social and/or environmental outcomes such as: 
  • Environmental management or remediation
  • Environmental technologies
  • Energy efficiency and renewable energy
  • Low-impact products or products that reduce ecological footprint
  • Sustainable buildings and property development
  • Sustainable land use and food production
  • Improved health and community wellbeing

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

Pendal Sustainable Australian Fixed Interest Fund

Pendal Sustainable International Fixed Interest Fund

Pendal Sustainable International Share Fund

Pendal Sustainable Future Australian Share Portfolio

Pendal Sustainable Australian Share Fund

Pendal Sustainable Balanced Fund

Pendal Ethical Share Fund

Sign up to join the Responsible Returns newsletter