About Australia Active Insights
The MCA Active Insights strategy seeks to maximise after-fee risk-adjusted alpha in Australian equities using forward-looking insights and a unique style, factor and sector neutral approach to identify mispricings.
Unlike ‘traditional’ quantitative-only funds that rely on backward-looking signals, the strategy fully utilises MCA’s unique set of forward-looking fundamental insights and multiple market factor and sector variables that capture systematic risk.
Our experienced investment team is solely focused on identifying investment opportunities using a disciplined and repeatable investment approach based on proprietary research into Valuation, Direction and Quality (including Sustainability) lenses.
The result is a highly diversified portfolio that achieves a balance between alpha, tracking error and turnover, and that can be customized for different target tracking error levels.
By separating and neutralising market factors and sector noise from our proprietary insights to isolate the pure ‘active insights’ within the mispricings identified by our proprietary research lenses, we can build portfolios based on our pure ‘active insights’, without taking any unnecessary style, factor or sector risk. The majority of the portfolio’s active return is driven by our pure ‘active insights’ and thus cannot be replicated by smart beta strategies.
Furthermore, as portfolio alpha is less cyclical it is suitable for investors with a shorter active risk investment time horizon, and ideal for use as a stand-alone strategy or as a fundamental complement to diversified portfolios.
The strategy aims to extract MCA's purest active ideas through:
- Portfolio driven by proprietary fundamental insights – MCA’s unique insights into Valuation, Direction, Quality (and Sustainability)
- Unique factor and sector neutral approach – Building portfolios based on forward-looking ‘active insights', without unnecessary style, factor or sector risk
- Proven investment process – Proprietary multi-lensed investment approach provides the broadest perspective of expected return and risk
- Fundamental active ownership – Purposeful engagement with companies and client advocacy through proxy voting
- Experienced stock pickers with long term track record – Deep industry experience generating ‘active insights’
| Portfolio characteristics | Australia Active Insights |
|---|---|
| Long-term objective | To provide an after-fee return in excess of the S&P/ASX 200 Accumulation Index over rolling three-year periods. |
| Investable Universe | Australian listed securities |
| Benchmark | S&P/ASX 200 Accumulation Index |
| Market capitalisation | All cap |
| Country limit | N/A |
| Sector limit | Benchmark +/- 6% |
| Security limit | Benchmark +/- 4% |
| Number of stocks | Typically 60 |
| Portfolio turnover | Typically 40% p.a. |
| Forecast tracking error | Typically 2% p.a. (ex ante) |
| Inception | 24 November 2021 |
The characteristics shown are guidelines only and not hard limits.
Matthew Davison
- Job title
- Portfolio Manager
Sam Li
- Job title
- Portfolio Manager
Unlike quantitative-only and passive funds, ESG research is integrated deeply into our multi-lensed fundamental research and also our portfolio construction.
How to invest
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.
Related insights
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Update regarding the Australia Unit trust range and Australian legal entity
In July 2020, Franklin Templeton acquired Legg Mason, becoming the world’s sixth largest asset manager. As a result of the acquisition, Franklin Templeton Australia have made several changes to reflect the new ownership and brand identity in Australia.
- Date published
- 1 Oct 2021
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Australia Sustainable Equity strategy launched
As part of its continually evolving range of client-driven solutions we announce the launch of the Martin Currie Australia Sustainable Equity strategy.
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Martin Currie Australia bolsters investment team from within
Martin Currie has recently bolstered its Australian investment team through a number of internal promotions to support the launch of its new Sustainable Equity and listed Global Real Assets capabilities
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