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Overview
The Martin Currie Australia Equity Income strategy seeks to provide a growing income stream by investing in a diversified benchmark-unaware portfolio of high-quality, income-paying securities.
Our income approach is premised on the philosophy that high-quality companies that have solid earnings can sustain dividends, match rises in the cost of living and are likely to be less volatile than the wider equity market. These are key attributes of what we like to call a ‘sufficient income for life’. Our approach also aims to extract the full benefit of franking credits and maximise after tax income for 0% tax payers.
Our focus on a ‘sufficient income for life’ has resulted in an Australian equity portfolio that looks very differently to both traditional equities and other income-focused approaches.
We have over 10 years of experience in managing income strategies through very varied market cycles, including the COVID-19 impacted 2020, and we believe this shows that our unique methodologies can provide investors with a portfolio with the attributes of ‘sufficient income for life’.
We believe that there are few peer strategies available in the market that address income in the way that the Martin Currie Australia Equity Income strategy can.
Key Information
To provide an after-tax yield above the S&P/ASX 200 Index yield and to provide income stream growth above inflation
| Portfolio characteristics | Australia Equity Income |
|---|---|
| Objective | Income |
| Asset Class | Equities |
| Style | Income / Quality |
| Investable Universe | Australian listed securities |
| Benchmark | Benchmark unaware |
| Market capitalisation | All cap |
| Country limit | N/A |
| Sector limit | Absolute 22% |
| Security limit | Absolute 6% |
| Number of stocks | Typically 45 |
| Portfolio turnover | Typically 25% p.a. |
| Forecast tracking error | We do not target tracking error but total risk outcome is typically 90% of the market. |
| Inception | 22 May 2010 |
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"The old view of the behaviour of retirees is that when they retire they automatically become more risk adverse and should move away from growth-style assets and more towards defensive assets. We do not agree."