Please note that the investment memorandum for this Fund is currently final draft form.  We expect to have this published in April 2025.

Investment Objectives Performance Objective: The Fund aims to provide a return (before fees, costs and taxes) that exceeds the MSCI ACWI ex Australia Index (Net Dividends) (Benchmark) over rolling 5 year periods. Sustainability Objective: The Fund aims to support the transition to a more sustainable economy, by aligning 80% or more of its capital in aggregate with investments that advance this transition. We aim to do this by allocating capital to investments that: • support positive environmental and/or social change via their investment processes, positively tilting the overall investment portfolio, and/or active ownership¹; and• avoid exposure to companies with business activities that Pendal considers to negatively impact the environment and/or society².We define a sustainable economy as an economic system which balances environmental, social, and economic factors. 
The Fund adopts an emulation approach whereby Pendal:1. obtains the investment holdings of related parties’ and/or third party’s investment strategies (Underlying Strategies) which we have assessed as having attractive expected investment performance and sustainable or ESG characteristics; 2. applies the Fund’s exclusionary screens to the investment holdings of the Underlying Strategies to exclude companies with business activities that Pendal considers to negatively impact the environment and/or society (Exclusionary Screens); and3. after applying the Exclusionary Screens, on a quarterly basis and where necessary adjusts the investment holdings of the Underlying Strategies to aim for a weighted average carbon intensity (WACI) score that is at least 30% below that of the Benchmark (Positive Sustainability Tilt).The Fund’s investment team then executes the trades in the adjusted Underlying Strategies directly and therefore directly owns, monitors, controls and implements the investments of the Fund. In addition, the Fund participates in active ownership activities, whereby through proxy voting and direct select engagement with investee companies or issuers, Pendal as responsible entity of the Fund, advocates for better ESG practices and hold companies or issuers accountable for their performance.The Exclusionary Screens, Positive Sustainability Tilt and active ownership activities, together forms the Fund’s Sustainability Overlay Framework that Pendal implements for the Fund to ensure better alignment with the Fund’s Sustainability Objective. The Fund does not rely solely on the Underlying Strategies to achieve this.

Investment Objectives

Performance Objective: The Fund aims to provide a return (before fees, costs and taxes) that exceeds the MSCI ACWI ex Australia Index (Net Dividends) (Benchmark) over rolling 5 year periods.

Sustainability Objective: The Fund aims to support the transition to a more sustainable economy, by aligning 80% or more of its capital in aggregate with investments that advance this transition.

We aim to do this by allocating capital to investments that

·         support positive environmental and/or social change via their investment processes, positively tilting the overall investment portfolio, and/or active ownership[1]; and

·         avoid exposure to companies with business activities that Pendal considers to negatively impact the environment and/or society (as defined by the Fund's exclusionary screens).

We define a sustainable economy as an economic system which balances environmental, social, and economic factors. 

The Fund adopts an emulation approach whereby Pendal:

1.      obtains the investment holdings of related parties’ and/or third party’s investment strategies (Underlying Strategies) which we have assessed as having attractive expected investment performance and sustainable or ESG characteristics;

2.      applies the Fund’s exclusionary screens to the investment holdings of the Underlying Strategies to exclude companies with business activities that Pendal considers to negatively impact the environment and/or society (Exclusionary Screens); and

3.      after applying the Exclusionary Screens, on a quarterly basis and where necessary adjusts the investment holdings of the Underlying Strategies to aim for a weighted average carbon intensity (WACI) score that is at least 30% below that of the Benchmark (Positive Sustainability Tilt).

The Fund’s investment team then executes the trades in the adjusted Underlying Strategies directly and therefore directly owns, monitors, controls and implements the investments of the Fund.

In addition, the Fund participates in active ownership activities , whereby through proxy voting and direct select engagement with investee companies or issuers, Pendal as responsible entity of the Fund, advocates for better ESG practices and hold companies or issuers accountable for their performance.

The Fund will avoid directly investing in companies which:

• extract or explore for fossil fuels (specifically, coal, oil and natural gas); or

• produce tobacco (including e-cigarettes and inhalers); or

• manufacture controversial weapons (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 avoid directly investing in companies which derive 10% or more of their gross revenue directly from:

• fossil fuel-based power generation, or fossil fuel distribution or refinement (coal, oil and natural gas)*;

• the 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.