Pendal Sustainable Australian Fixed Interest Fund

Product Name

Pendal Sustainable Australian Fixed Interest Fund

Issuer

Pendal Group

Category

Investment product

Type

Fund/Trust

Target

Wholesale

Certified Since

2017

Certification Symbol

Responsible Investment

Asset Classes

Fixed income

Markets

Australia

Investment Approaches

Best of sector, Negative Screening

It Includes

  • Riaa icons 11 More sustainable companies
  • Investment2 Social impact investments
  • Riaa icons 10 Renewable energy
  • Riaa icons 32 Green property
  • Riaa icons 12 Healthcare & medical products
  • Riaa icons 15 Social & community infrastructure

It Excludes

  • Riaa icons 33 Fossil fuels
  • Riaa icons 35 Tobacco
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 36 Armaments
  • Riaa icons 41 Alcohol
  • Riaa icons 42 Gambling
  • Riaa icons 55 Pornography

Overview

The Pendal Sustainable Australian Fixed Interest Fund is an actively managed portfolio of Australian fixed interest securities. Investments are selected based on a range of sustainable, ethical and financial criteria. 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.


Description


The Fund offers investors access to a diversified portfolio of fixed interest securities and seeks exposure to issuers that demonstrate leading ethical and environmental, social and corporate governance (ESG) practices while avoiding exposure to issuers with activities that we consider to negatively impact the environment or society. 
 The Fund will not invest in issuers with material business involvement in the following activities:
 • 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 an issuer has a material business involvement in an activity if 10% or more of its total revenue is derived from that activity. 
 The Fund uses a security selection process that combines sustainable and ethical criteria with Pendal’s credit analysis. Pendal’s investment process for fixed interest aims to add value through multiple strategies and investment research. Pendal seeks to generate excess returns through strategies including active security (including Green, Social and Sustainable Bonds) and sector selection, duration, yield curve and credit management.
 Our investment approach for credit management seeks to identify opportunities on a sector, issuer and security basis by incorporating top-down and bottom-up research. Top-down research includes analysis of economic and market data, along with macro credit fundamentals such as company earnings, balance sheet health, default rates and equity volatility. The bottom up research includes analysis of earnings and cashflow volatility, balance sheet, business diversity, industry and valuation.

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