Sustainability ObjectiveThe Fund aims to allocate capital to issuers and securities that are aligned to our sustainability themes: climate stability, human basics and innovation for good (the Sustainability Objective). These themes include but are not limited to:

• Climate stability: Actions towards a net-zero future, preserving climate stability, and biodiversity.

• Human basics: Essential goods and services, key infrastructure, and access to finance, telecommunications, and insurance.

• Innovation for good: Development projects for underserved communities, activities aimed at empowerment or resilience, and other actions that lead to human flourishing.

The Fund aims to allocate capital to issuers and securities aligned with our sustainability themes by:

• investing in securities issued by issuers that have passed Pendal’s sustainability threshold;

• avoiding exposure to issuers with business activities that Pendal considers to negatively impact the environment and/or society³;

• investing in green bonds, social bonds and sustainable bonds that in addition to meeting its financial risk and return requirements also aim to generate positive and measurable social and/or environmental outcomes; and

• overweight the Fund’s allocation to green bonds, social bonds and sustainable bonds by exceeding their aggregate weights in the Bloomberg Ausbond Composite 0+Yr Index.

The PDS is provided in final draft form to RIAA and will be published on our website in Q2 2025

Significant features

The Pendal Sustainable Australian Fixed Interest Fund is anactively managed portfolio of fixed interest securities.

Investments are selected based on a range of sustainable,ethical and financial criteria.

Significant benefits

Investing in the Fund offers investors a range of benefits:

• access to a professionally managed portfolio of fixedinterest securities;

• exposureto issuers that have passed Pendal’s sustainability threshold while avoidingexposure to issuers with business activities that Pendal considers tonegatively impact the environment and/or society[1];

• exposureto green bonds, social bonds and sustainable bonds that in addition to meetingits financial risk and return requirements also aim to generate positive andmeasurable social and/or environmental outcomes; and

• access to Pendal’s investment expertise and sustainability reporting.

Description of Fund

This Fund is designed for investors who want income,diversification across a broad range of fixed interest securities (includinggovernment securities, semi-government securities, supranational securities andcredit securities) and are prepared to accept some variability of returns.

Pendal’s investment process for fixed interest aims to addvalue through multiple strategies and investment research. Pendal seeks togenerate excess returns through strategies including active security (includinggreen bonds, social bonds and sustainable bonds) and sector selection,duration, yield curve and credit management.

Our investment approach for credit management seeks toidentify opportunities on a sector, issuer and security basis by incorporatingtop-down and bottom-up research. Top-down research includes analysis ofeconomic and market data, along with macro credit fundamentals such as company earnings,balance sheet health, default rates and equity volatility. The bottom upresearch includes analysis of earnings and cashflow volatility, balance sheet,business diversity, industry and valuation.

Sustainability Objective

The Fund aims to allocate capital to issuers and bondissuances that are aligned to our three sustainability themes (climatestability, human basics and innovation for good).

Pendal aims to achieve this by:

·      investing in bonds issued byissuers that have passed Pendal’s sustainability threshold;

·      avoiding exposure to issuerswith business activities that Pendal considers to negatively impact theenvironment and/or society[1];

·      investing in green bonds,social bonds and sustainable bonds that in addition to meeting its financialrisk and return requirements also aim to generate positive and measurablesocial and/or environmental outcomes; and

·      overweight the Fund’sallocation to green bonds, social bonds and sustainable bonds by exceedingtheir aggregate weights in the Bloomberg Ausbond Composite 0+Yr Index.

Sustainability Assessment

In managing the Fund, Pendalfocuses on sustainable themes (including climate stability, human basics and innovationfor good), and draws on internal and external research to assess issuers ontheir sustainability performance (their exposure to ESG risks and how well theymanage those risks relative to peers). To be considered for the Fund’sinvestments, issuers must pass Pendal’s minimum sustainability threshold forthe Fund.

Pendal’s sustainable assessmentconsiders the extent to which an issuer manages its environmental, social, andgovernance (ESG) risks including but not limited to:

Environmental

• Carbon emissions, product carbonfootprint, water stress, biodiversity and land use, toxic emissions and waste.

Social

 • Labour management, health and safety, supplychain labour standards, product safety and quality, privacy and data security.

Governance

• Ownership and control, Boardcomposition, pay, business ethics and tax transparency.

[1]As defined by the exclusionary screens and gross revenue thresholds.

[1]As defined by the exclusionary screens and gross revenue thresholds.