The Martin Currie Australia Value Equity strategy is designed for investors who seek to maximise the longer-term returns of the Value style.
To do this, the strategy provides investors with a diversified and contrarian exposure to our highest conviction Australian equity ideas with attractive valuation potential. Stocks are selected based on our proprietary Valuation research lens, with risk balanced through the addition of our Quality and Direction lenses.
Our extensive fundamental and quantitative experience has allowed us to design a multi-lensed investment process that specifically reflects the Australian market’s deeply ingrained structural inefficiencies such as its value-tilt, high concentration, franking credits, and propensity to be impacted by global equity factors. This deep understanding of the Value style, market behaviour and both expected returns & risk drives our contrarian positions, and helps us to avoid any ‘herd mentality’ or value traps.
MCA has been investing in Australian equities for more than 40 years, and we have over 15 years of experience in managing Value style strategies through very varied market cycles, including the COVID-19 impacted 2020.
|Portfolio characteristics||Australia Value Equity|
|Investable Universe||Australian listed securities|
|Benchmark||S&P/ASX 200 Accumulation Index|
|Market capitalisation||All cap|
|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||26 October 2006|
"Within Australia’s unique market structure, a multi-lens approach can offer a better perspective of fair value than any one method can on its own."