The power of real assets – low volatility & high income

Asia Pacific Real Income

8 August 2019


Our strong income and capital returns have been achieved with much lower volatility and drawdowns.

With the Asia Pacific Real Income strategy recently passing its three-year track record we take a closer look at the power of Asia Pacific Real Assets.

In 2016 we leveraged on the success of our innovative and award winning Australian Real Income strategy, and expanded our investment universe to capture the favourable demographic trends in the Asia Pacific ex Japan region where population, urbanisation and the rising middle class are driving significant growth.

Three years of delivering on client income objectives

With traditional ‘low risk’ solutions for income (such as bonds) providing insufficient income, we have long believed that equities needed to be a larger part of an income portfolio. We developed an innovative, low volatility equity-based strategy using listed Asia Pacific ex Japan Real Assets that is suitable for income-focused investors and puts the client’s income needs first and foremost.

At the outset, the performance objective we set out for the Martin Currie Asia Pacific Real Income strategy was to provide:

  • an income yield of 20% above the MSCI AC Asia Pacific ex Japan Index;
  • with volatility 20% less than the index; and
  • and to grow this income above inflation.

On its three-year anniversary, we are very pleased that the Martin Currie Asia Pacific Real Income strategy has exceeded its objectives since its inception on 28 June 2016.

In the full article (PDF), our investment specialists, Andrew Chambers and Daniel Fitzgerald show:
  • how the Asia Pacific Real Income strategy has delivered on its objectives for lower risk income-focused investors
  • how strong performance during volatile markets reflects our differentiated investment approach; and
  • why the ongoing trade war and any economic downturn has limited impact on the performance of the strategy.

The Power of Real Assets - Low Volatility & High Income - Download full PDF

Important information

Past performance is not a guide to future returns.
The information contained in this presentation has been compiled with considerable care to ensure its accuracy. But no representation or warranty, express or implied, is made to its accuracy or completeness. Market and currency movements may cause the capital value of shares, and the income from them, to fall as well as rise and you may get back less than you invested.
The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were or will prove to be profitable.

Martin Currie has procured any research or analysis contained in this presentation for its own use. It is provided to you only incidentally, and any opinions expressed are subject to change without notice. The opinions contained in this document are those of the named manager(s). They may not necessarily represent the views of other Martin Currie managers, strategies or funds. Please note the information within this report has been produced internally using unaudited data and has not been independently verified. Whilst every effort has been made to ensure its accuracy, no guarantee can be given.