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 listed Real Asset securities (such as REITs, infrastructure and utilities), as well as selected global securities.
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 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 and global developed market listed Real Asset securities |
| Benchmark | Benchmark unaware |
| Market capitalisation | All cap |
| Country limit | Up to 20% in non-ASX securities from global developed markets |
| Sector limit | Unconstrained |
| Security limit | Absolute 9% |
| Number of stocks | Typically 32 |
| 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
- 27 years
Daniel Fitzgerald
- Job title
- Portfolio Manager, Real Assets
- Experience
- 22 years
Ashton Reid
- Job title
- Portfolio Manager, Real Assets
- Experience
- 30 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
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.
Funds available
Through our parent company, Franklin Templeton, investors are offered access to the below funds.
Related insights
-
Shaping up for the next Reporting Season
Blow-out inflation readings, central bank rate rises, a new Australian government and a market correction in June… As we enter Australia's next reporting season, we have looked at the key market developments since last season we expect to shape the profit margins and outlooks that Australian companies will report in August.
- Date published
- 27 Jul 2022
- Tag
- Cross-Strategy Australia
-
Update regarding the Australia Unit trust range and Australian legal entity
In July 2020, Franklin Templeton acquired Legg Mason, becoming the world’s sixth largest asset manager. As a result of the acquisition, Franklin Templeton Australia have made several changes to reflect the new ownership and brand identity in Australia.
- Date published
- 1 Oct 2021
- Tag
-
Australia Sustainable Equity strategy launched
As part of its continually evolving range of client-driven solutions we announce the launch of the Martin Currie Australia Sustainable Equity strategy.
- Date published
- 18 May 2020
- Tag
- Australia Sustainable Equity