A unique approach to capturing Asian growth

Asia Pacific Real Income

Unique approach to Asian growth

These are challenging times for investors looking for stable and growing income streams. In this environment, the Martin Currie Asia Pacific Real Income strategy, which sits between fixed income and equities on the risk-return spectrum, offers a compelling solution.

Investors who require a stable and dependable income have many challenges to face in the current market environment. Low economic growth, high debt and low interest rates have left few sound options.

The higher capital volatility of equity markets, and the concentrated nature of equity benchmarks, can make investors feel uncomfortable about being exposed to growth assets. Traditional unlisted infrastructure or property strategies can have poor liquidity and non-transparent pricing. Derivatives strategies for income enhancements or capital protection can often be costly and inefficient. And a passive approach may not consider the risk of impaired income, concentration issues, or inflation protection.

Past performance is not a guide to future returns.
Source: Martin Currie Australia; for illustrative purposes only.

What are real assets

Real Assets, such as listed property trusts (REITs), utilities and other essential infrastructure, sit within a less volatile sector of the market between fixed income and equities on the risk/return spectrum.

REITS
  • Discretionary shopping centres
  • Non-discretionary shopping centres
  • Office buildings
  • Industrial sheds
Infrastructure
  • Toll roads
  • Airport centres
  • Railroads and ports
Utilities
  • Gas and electricity grids
  • Multi-utilities centres

We believe that an allocation to Real Assets can provide investors with a high, stable and growing income stream, and will exhibit less volatility than the wider market. Real Assets in Asia Pacific (ex Japan) region are particularly well positioned due to the favourable population and demographic trends in the region.

Asia Pacific Real Income unique approach to Asian growth PDF
In this paper we discuss:
  • Why the listed Real Asset class is a compelling solution for income investors
  • How listed Real Assets in Asia Pacific (ex Japan) are well-positioned to favourable population and demographic trends in the region
  • How Martin Currie Australia’s expertise as a Real Asset stock-picking specialist can help navigate the market

View full report

Risk warnings – Investors should also be aware of the following risk factors which may be applicable to the strategy.
Investing in foreign markets introduces a risk where adverse movements in currency exchange rates could result in a decrease in the value of your investment.
Emerging markets or less developed countries may face more political, economic or structural challenges than developed countries. Accordingly, investment in emerging markets is generally characterised by higher levels of risk than investment in fully developed markets.

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Kimon Kouryialas

Kimon Kouryialas
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