Allocating for global growth

Martin Currie Australia Diversified Growth

24 August 2018

Australia Diversified Income Allocating for global growth

Global growth in general has been improving, and Australia continues to outpace most regions in terms of GDP growth.


The global economic outlook has steadily improved over the last two years, with growth trends for Australia and the US expected to continue. 

For investors in multi-asset strategies, failure to allocate assets appropriately in the current investment landscape can have a substantial impact on future returns for such portfolios. 

Our Martin Currie Australia Diversified Growth strategy is based on a constant monitoring of the market environment for each asset class, and similarly for the individual strategies1 that make up the portfolio, and overweighting those that are more attractive on a forward-return basis. 

The Diversified Growth strategy has delivered top quartile returns over many years, and these investment returns have been augmented by our manager selection and asset allocation decisions across a range of Australian and global equity, real, bond and cash strategies.

INFORMING OUR ASSET ALLOCATION

We currently hold 69% in growth assets. Our equity exposure is weighted more towards Australia than global, the latter being more expensive on most metrics. 

Our 31% defensive positioning is increasingly in short-duration AUD fixed interest exposures in order to avoid the impact of rising bond yields.

Allocating for global growth PDF

In the attached full article (PDF), Reece Birtles, Chief Investment Officer, Martin Currie Australia, explains how the Diversified Growth strategy is in a strong position to capture future returns based on the current global outlook.

Allocating for Global Growth - Download PDF

1Exposure to different asset classes is achieved through investing in a range of underlying funds, managed by Legg Mason’s affiliates, with asset-allocation decisions and selection of the underlying funds managed by Martin Currie Australia.