About Asia Pacific Real income
The Martin Currie Asia Pacific Real Income strategy is designed for investors looking for a high, stable and growing income stream, with lower volatility than the broader equity market.
The strategy invests in a diversified portfolio of quality listed Real Asset securities (such as REITs, infrastructure and utilities) from developed and emerging Asia Pacific ex Japan countries.
The Asia Pacific (ex Japan) region’s population is growing significantly, the consumerist middle class is expanding, urbanisation is continuing, and infrastructure spend is increasing. Real Assets have unique leverage to these demographic themes , and can provide a stable and dependable income that few other asset classes can match.
Our approach is premised on the philosophy that the performance of Real Assets are driven by their leverage to the key demographic themes of population, urbanisation or middle-class growth, and that quality listed Real Asset securities can sustain dividends, grow distribution to match rises in the cost of living and are likely to be less volatile than the wider equity market.
We believe that maximising income and minimising risks such as impaired income, concentration and inflation, is a much more important risk measure than benchmark relative alpha and tracking-error measures. As such we believe that the traditional approach to think about benchmark relative risk may not be appropriate in income focussed portfolios.
We aim to build a highly-liquid diversified portfolio of Real Assets with:
- an above average dividend yield;
- a lower-than-market total risk outcome;
- with lower debt and higher quality than the broader market.
Research outputs from Martin Currie Australia’s multi-lensed approach are combined with our investment thesis to determine conviction and individual security target weightings.
The diversified portfolio of listed Real Assets is constructed on a bottom-up, benchmark unaware basis, taking into consideration stock limits as well as geographic and sectorial diversification.
| Portfolio characteristics | Asia Pacific Real Income |
|---|---|
| Long-term objective | To provide a pre-tax yield above the MSCI AC Asia Pacific ex Japan Index with lower volatility and provide income growth |
| Investable Universe | Asia Pacific ex Japan listed Real Asset securities |
| Benchmark | Benchmark unaware |
| Market capitalisation | All cap |
| Country limit | At least 50% of the portfolio must be invested outside of Australia/New Zealand. |
| Sector limit | Absolute 60% to REITs and property related securities |
| Security limit | Absolute 10% |
| Number of stocks | Typically 40 |
| 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 | 28 June 2016 |
The characteristics shown are guidelines only and not hard limits.
Not all Real Assets are created equal for income investors
The Martin Currie Asia Pacific Real Asset team focus on identifying high-quality established ‘brownfield’ assets, avoiding riskier development in ‘greenfield’ projects.
Andrew Chambers
Portfolio Manager
Andrew Chambers
- Job title
- Portfolio Manager, Real Assets
- Experience
- 26 years
Daniel Fitzgerald
- Job title
- Portfolio Manager, Real Assets
- Experience
- 21 years
Ashton Reid
- Job title
- Portfolio Manager, Real Assets
- Experience
- 29 years
Strategy guide
High, stable and growing income from listed Asia Pacific (Ex Japan) Real Asset Securities
Strategy guide
High, stable and growing income from listed Asia Pacific (Ex Japan) Real Asset Securities
Income focused
True to label, client-objective-oriented strategy with income at heart
Unique investment universe
Blend of listed REITs, infrastructure and utilities
Focus on population growth in Asia Pacific region
Selecting assets driven by the mega trends of population and urbanisation growth
Differentiated approach
Martin Currie Australia’s unique multi-lensed research approach
Long term investing
Exceptional breadth and depth within our Real Asset capability
ESG analysis fully integrated
All Martin Currie portfolios focus on Stewardship
We have put the income needs of clients at the heart of the product design for the Martin Currie Asia Pacific Real Income strategy.
How to invest
Through our parent company, Franklin Templeton, investors are offered access to a segregated account or a range of pooled vehicles.
Please contact us to discuss the most appropriate investment to meet your requirements.
How to invest
Martin Currie is a Specialist Investment Manager of Franklin Resources Inc, operating as Franklin Templeton.
Franklin Templeton is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Franklin Templeton website.
How to invest
Martin Currie is a ‘Specialist Investment Manager’ within the Franklin Templeton group.
Franklin Templeton is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Franklin Templeton website.
How to invest
Martin Currie is a ‘Specialist Investment Manager’ within the Franklin Templeton group.
Franklin Templeton is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Franklin Templeton website.
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