Chief Investment Officer, Martin Currie Australia discusses the investment philosophy and process.
The objective of the Martin Currie Australia Equity Income strategy is to deliver an attractive and sustainable income, growing faster than inflation. We aim to achieve this by investing in Australian companies with high-quality business models that have solid dividend paying prospects through the business cycle, but with lower risk than the broader equity market. Generally, companies that have solid earnings can sustain dividend pay-outs and are likely to be less volatile than other stocks.
Even in times of market volatility, the selected companies are expected to continue paying dividends and provide regular income.
The strategy aims to be a true-to-label equity income growth product and does not seek to enhance income through exotic derivative structures, by trading around dividend dates or through gearing.