Select the options below that best describe your investor status

Select your location  -  

Your location is pre-selected based on your location settings

You will be able to select an investor type once a location has been selected.

If none of the above applies to you, please go to our corporate site.

Clicking 'Accept and Enter' means you agree to our investing disclaimers.

Our disclaimer policy

Specific disclaimer policies will be shown here once your location and investor type has been selected.

Australia Active Insights

Transforming pure insights into alpha

Overview

"Traditional" active fundamental equity portfolios which depend on style or factor mean reversion to drive alpha are often associated with high tracking error and longer time horizons. We recognise that these types of portfolios are increasingly becoming less aligned with the risk budget of asset owners facing strict performance benchmarks such as the Your Future, Your Super (YFYS) performance test. However, we still believe that true alpha is best derived from fundamental analyst insights.

The Martin Currie Australia (MCA) Active Insights strategy invests in a diversified portfolio of ASX-listed equities. We aim to provide investors with a ‘goldilocks’ efficient portfolio with consistently higher returns than the benchmark with a lower tracking error by focussing on our investment team’s ‘pure’ fundamental insights and minimising unnecessary style factor and sector risks relative to the S&P/ASX 200.

With the influence of style factor cyclicality and sector biases substantially reduced, and with deep fundamental insight and disciplined risk control, we believe the MCA Active Insights strategy offers benefits distinct from active fundamental portfolios, systematic smart beta or passive strategies.

Key Pillars of the Strategy

300

Proprietary multi-lensed research by an experienced team

The MCA team has over 40 years of experience investing in Australian equities and listed Real Assets using a disciplined and repeatable multi-lensed investment approach.

300

Combining fundamental research with risk control

Our stock ideas are grounded in our fundamental, bottom-up Valuation research. Risk is managed by incorporating our Quality, Direction Short-Term and Direction Long-Term lenses.

300

Fully integrated fundamental Active Ownership approach

Responsibility for Active Ownership lies directly with the research analysts and portfolio managers responsible for making investment decisions.

300

Unique portfolio stabilisers that minimise unnecessary style factor and sector risks

Our proprietary Mispricing process combines our fundamental research expertise with proprietary alpha & risk signals to identify attractive stocks that help to neutralises the influence of style or sector bias

We believe that our long-term track record in alpha generation through varied market cycles demonstrates our ability to deliver investors with a more persistent and efficient alpha stream at a lower cost, in a way that is difficult for passive, systematic or quantitative strategies to emulate.

Key Information

Portfolio characteristics Australia Active Insights
Objective Long-Term Growth
Asset Class Equities
Style Core
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

Investment team

The Active Insights strategy is co-managed by Matt Davison and Sam Li.

The strategy is supported by the broader MCA investment team through detailed fundamental research analysis across MCA's four research lenses for each company within the investment universe.

In addition, our quantitative research function is continually looking for new ways to improve the investment process and the efficacy of our stock decisions and portfolio risk/return outcomes.

Matt Davison

Matthew Davison

Job title
Portfolio Manager

Sam Li, CFA

Job title
Portfolio Manager