About Australia Diversified Income
The Martin Currie Australia Diversified Income strategy is specifically designed for retirees seeking an asset allocation solution for a growing income stream.
The innovative strategy invests in a diversified portfolio of Australian equities, listed real assets (A-REITS, utilities, infrastructure), fixed income and cash.
Each asset class is underpinned by a specific investment rationale, which, when combined, provides a mix of capital stable, high yield and steadily growing income stream.
Coupled with exposure to low-risk growth assets and avoidance of derivative strategies, we believe that the innovative blend of asset classes can deliver a superior income solution for retirees.
The strategy is designed to extract the full benefit of franking credits and maximise after tax income for 0% tax payers.
We believe that a retirement income strategy and asset mix should be very different to a typical balanced fund strategy for people in the accumulation phase of their investments.
Our investment approach focuses on identifying superior expected income from equities, bonds and cash in order to provide an optimal asset allocation for retirees requiring sustainable income and growth over the medium to long term.
We believe that this combination can provide retirees with the expected benefits of low volatility (fixed income), inflation protection (real assets), long-term income growth (equity income), and liquidity (cash) which minimises the need to draw down capital and provides higher yields and better income stability than stand-alone assets such as term deposits.
The Diversified Income strategy brings together Martin Currie Australia’s deep understanding of the income needs of retirees, and a 40+ year pedigree in asset allocation and managing balanced funds.
In order to always maximise ‘sufficient income for life’ characteristics, Martin Currie Australia continually assesses Australian equities, real assets, bonds and cash, and tilts the strategy toward the most attractive asset classes.
The diversified asset allocation across both growth assets with attractive yields and growing dollar income, and lower volatility defensive assets, also helps manage sequencing risk at the point of retirement, and also ensures lower capital volatility than a broad-based equity portfolio.
| Portfolio characteristics | Australia Diversified Income |
|---|---|
| Long-term objective |
To provide an after-tax total return of CPI +4% and to provide income stream growth above inflation.
The strategy also aims to provide a total return and annual income greater than that of the Composite Benchmark. |
| Investable Universe | Australian listed equities, fixed income and cash |
| Benchmark |
Composite Benchmark: - 30%: S&P/ASX 200 Accumulation Index - 30%: 50% S&P/ASX A-REIT 30% Index / 50% S&P/ASX Infrastructure Index - 30%: Bloomberg AusBond Composite Bond Index - 10%: Bloomberg AusBond Bank Bill Index |
| Market capitalisation | All cap |
| Country limit | N/A |
| Sector limit | N/A |
| Security limit | N/A |
| Number of stocks | N/A |
| Portfolio turnover | N/A |
| Forecast tracking error | N/A |
| Inception | 30 May 2014 |
The characteristics shown are guidelines only and not hard limits.
A sufficient income for life
We believe that a retirement income strategy and asset mix should be very different to a typical balanced fund strategy for people in the accumulation phase of their investments.
Reece Birtles
Chief Investment Officer
Reece Birtles
- Job title
- Chief Investment Officer, Martin Currie Australia
- Experience
- 28 years
Will Baylis
- Job title
- Portfolio Manager
- Experience
- 35 years
We have put the income needs of clients at the heart of the product design for the Martin Currie Australia Diversified Income strategy.
How to invest
We offer investors access to our strategies through 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 an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason 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 Legg Mason website.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason 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 Legg Mason website.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason 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 Legg Mason website.
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