About Australia Property Securities
The Martin Currie Australia Property Securities strategy is designed for investors who seek to maximise longer-term returns.
The strategy invests in a high conviction portfolio of Australian and Asian property and property-related securities trading below our assessment of intrinsic value.
By investing only in listed securities, the portfolio’s high liquidity and transparent pricing avoids common problems faced by unlisted property funds.
The dedicated Real Asset team’s local knowledge and forward-looking insights into replacement cost rents and sustainable cash flows look through the short-term market noise and focus on the long-term normalised earnings power of companies to drive security selection.
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.
We aim to build a high conviction portfolio of:
- the most undervalued securities;
- that will produce a positive return to fair value;
- whilst controlling for risk and direction exposure.
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 concentrated portfolio of 15-35 securities is constructed on a bottom-up basis, taking into consideration stock limits as well as geographic and sectorial diversification.
| Portfolio characteristics | Australian Property Securities |
|---|---|
| Long-term objective | To provide an after-fee return in excess of the S&P/ASX 300 AREIT Accumulation Index over rolling three-year periods. |
| Investable Universe | Australian and Asian listed securities |
| Benchmark | S&P/ASX 300 A-REIT Accumulation Index |
| Market capitalisation | All cap |
| Country limit | Up to 30% in non-ASX securities from Asia ex Japan (including New Zealand) |
| Sector limit | N/A |
| Security limit |
Benchmark +/- 6% No underweight constraint Exposure to non-benchmark securities is no more than 7.5% |
| Number of stocks | 15 - 35 |
| Portfolio turnover | Typically 30% p.a. |
| Forecast tracking error | Typically 3% p.a. (ex ante) |
| Inception | 1 August 1988 |
The characteristics shown are guidelines only and not hard limits.
Deep resources and local knowledge
Our dedicated Real Asset team has deep knowledge of Australian and Asian REIT markets.
Ashton Reid
Portfolio Manager
Andrew Chambers
- Job title
- Portfolio Manager, Real Assets
- Experience
- 25 years
Daniel Fitzgerald
- Job title
- Portfolio Manager, Real Assets
- Experience
- 20 years
Ashton Reid
- Job title
- Portfolio Manager, Real Assets
- Experience
- 28 years
As part of the broader Martin Currie Australia team, our Real Asset specialists gain access to corporate management and insights beyond the Property Security universe.
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 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 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 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
-
Immigration shifting gear
With widespread domestic job losses and restrictions on the movement of people across borders, what does this mean for migration and remittance trends?
- Date published
- 21 Sep 2020
- Tag
- Aftermath: Post Covid-19
-
Aftermath - Eroding trust in the social contract
Most citizens would see that they have a type of social contract with their governments. Is a growing sense of inequity eroding trust in governments? Are they looking for companies to fill the void?
- Date published
- 8 Sep 2020
- Tag
- Aftermath: Post Covid-19
-
Leading the Stewardship & ESG evolution
In this time of COVID-19, it is even more important that we continue our steadfast focus on active ownership.
- Date published
- 24 Aug 2020
- Tag
- Stewardship & ESG