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Overview
The Martin Currie Australia Green Value strategy is designed for investors who are seeking to maintain the long-term capital growth potential of the Value style but with a reduced carbon exposure.
To do this, the strategy provides investors with a diversified and contrarian exposure to our highest conviction Australian equity ideas with strong Green Valuation potential, while balancing risks through our focus on Quality and Direction.
We use our proprietary Carbon Value at Risk (VaR) tool within our Green Valuation process to clearly distinguish between Value stocks that are attractive, even after incorporating a carbon externality cost, and those that are unlikely to survive in a low carbon future. The Carbon VaR tool also helps identify Value-style stocks that will either benefit or have a minimal impact on earnings from the transition.
Based on this insight, we are able to favour the most attractively valued companies with lower carbon emissions while providing a true value exposure commensurate with our flagship Value Equity strategy.
We believe that there are few peer strategies available in the market that address the Value style alongside carbon reduction in this way, while seeking to provide higher returns than the S&P/ASX 200 Accumulation index over the longer term.
Key Information
To provide an after-fee return in excess of the S&P/ASX 200 Accumulation Index over rolling five-year periods.
| Portfolio characteristics | Australia Green Value |
|---|---|
| Objective | Long-Term Growth |
| Asset Class | Equities |
| Style | Value |
| Investable Universe | Australian listed securities |
| Benchmark | S&P/ASX 200 Accumulation Index |
| Market capitalisation | All cap |
| Country limit | N/A |
| Sector limit | Benchmark +/- 12% |
| Security limit | Benchmark +/- 7% |
| Number of stocks | Typically 33 |
| Portfolio turnover | Typically 25% p.a. |
| Forecast tracking error | We do not target tracking error but is typically 5% p.a. (ex ante) |
| Inception | 13 November 2019 |
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"Australian Value style strategies often rate poorly on carbon and environmental credentials due to sector biases and industry skew of the S&P/ASX 200. As a result, Value style strategies typically have higher carbon exposure than Quality/Growth style strategies."