About Australia Green Value
The Martin Currie Australia Green Equity strategy is designed for accumulation investors who are seeking to maintain the long-term capital growth potential of the Value style but with a reduced carbon exposure.
The strategy invests in a high conviction portfolio of Australian securities trading below our assessment of long-term normalised earnings while considering the risk/reward opportunity.
We explicitly incorporate a carbon externality cost into our Valuation process to identify companies that benefit from the transition to a low-carbon future.
The concentrated portfolio with contrarian positions provides a value exposure commensurate with the flagship MCA Value Equity strategy, but with a lower Shadow Carbon Cost than other Value style portfolios.
Our approach is premised on the philosophy that the equity market is efficient over the long term, with security prices ultimately reflecting the present value of future cash flows.
However, in the short term, the market’s behavioural biases can create temporary mispricing and divergence from fair value that can be exploited by our disciplined investment process.
Our active ownership approach is embedded into our investment process, and we overlay shadow carbon externality costs into our Valuations to understand the future impact of climate and energy policy changes on both companies and on portfolios
We aim to build a high conviction portfolio of:
- The most undervalued securities;
- That will produce a positive return to fair value that considers the future value of carbon emissions;
- Whilst controlling for risk and Direction exposure.
The incorporation of carbon costs into our Valuation lens helps us to distinguishes between Value stocks that are attractive, even after incorporating a carbon cost; and those that are unlikely to survive in a low carbon future.
| Portfolio characteristics | Australia Green Value |
|---|---|
| Long-term objective | To provide an after-fee return in excess of the S&P/ASX 200 Accumulation Index over rolling five-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 +/- 12% |
| Security limit | Benchmark +/- 6% |
| Number of stocks | Typically 33 |
| Portfolio turnover | Typically 25% p.a. |
| Forecast tracking error | We do not target tracking error but is typically 5% p.a. (ex ante) |
| Inception | 13 November 2019 |
The characteristics shown are guidelines only and not hard limits.
A “Green” Valuation approach
By building Value portfolios on the basis of our proprietary Green Valuation lens, we can maintain our deep value exposure while reducing shadow carbon externality costs
Reece Birtles
Chief Investment Officer
Reece Birtles
- Job title
- Chief Investment Officer, Australia – Non Executive Director
Michael Slack
- Job title
- Head of Australian Equity Research
Stewardship is a critical element of our investment philosophy, and we believe that financial returns and ESG impacts are fundamentally intertwined over the long term.
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.
Related insights
-
Stewardship Annual Report 2021
The Stewardship Annual Report 2021 highlights the results of our sustained commitment to the development of productive ESG engagements embedded in our investment process.
- Date published
- 31 Mar 2021
- Tag
- Stewardship & ESG
-
Infrastructure - the time is now
With infrastructure spend set to increase globally, this paper is a comprehensive overview of current and future infrastructure outcomes.
- Date published
- 27 Oct 2020
- Tag
- Australia
-
Aftermath - The world after COVID-19
The Aftermath is Martin Currie’s ground-breaking study on the new realities that are occurring as a result of the pandemic. Covering a vast range of economic, societal and environmental outcomes, the research outlines the key themes and implications relevant for long-term equity investors.
- Date published
- 21 Oct 2020
- Tag
- Covid-19