About Australia Real income
The Martin Currie Real Income strategy is designed for investors looking for a high, stable and growing income stream, with lower volatility than the broader equity market.
The strategy invests in a diversified portfolio of quality ASX-listed Real Asset securities (such as REITs, infrastructure and utilities).
Australia’s population is growing significantly, urbanisation trends are leading city-based population growth, and infrastructure spend is increasing. Real Assets have unique leverage to these demographic themes, and can provide a stable and dependable income that few other asset classes can match.
Our approach is premised on the philosophy that the performance of Real Assets is driven by their leverage to the key demographic themes of population, urbanisation or middle-class growth, and that quality listed Real Asset securities can sustain dividends, grow distribution to match rises in the cost of living and are likely to be less volatile than the wider equity market.
We believe that maximising income and minimising risks such as impaired income, concentration and inflation, is a much more important risk measure than benchmark relative alpha and tracking-error measures. As such we believe that the traditional approach to think about benchmark relative risk may not be appropriate in income focussed portfolios.
We aim to build a highly-liquid diversified portfolio of Real Assets with:
- an above average dividend yield;
- a lower-than-market total risk outcome;
- with lower debt and higher quality than the broader market.
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 diversified portfolio of the best 20–45 listed Real Assets is constructed on a bottom-up, benchmark unaware basis, taking into consideration stock limits as well as geographic and sectorial diversification.
| Portfolio characteristics | Australia Real Income |
|---|---|
| Long-term objective | To provide a pre-tax yield above the S&P/ASX 200 Index with lower volatility and provide income growth above inflation |
| Investable Universe | Australian listed Real Asset securities |
| Benchmark | Benchmark unaware |
| Market capitalisation | All cap |
| Country limit | N/A |
| Sector limit | Unconstrained |
| Security limit | Absolute 9% |
| Number of stocks | 20 - 45 |
| Portfolio turnover | Typically 25% p.a. |
| Forecast tracking error | We do not target tracking error but total risk outcome is typically 90% of the market. |
| Inception | 17 November 2010 |
The characteristics shown are guidelines only and not hard limits.
Not all Real Assets are created equal for income investors
The Martin Currie Australia Real Asset team focus on identifying high-quality established ‘brownfield’ assets, avoiding riskier development in ‘greenfield’ projects.
Aston 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
We have put the income needs of clients at the heart of the product design for the Martin Currie Australia Real 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 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.
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