About Australia Value Equity
The Martin Currie Australia Value Equity strategy seeks to maximise returns for longer term investors by investing in a high conviction portfolio of securities which are trading below our assessment of intrinsic value, whilst considering each company’s direction and quality.
The strategy invests in a high conviction portfolio of Australian securities trading below our assessment of long-term normalised earnings and while considering the risk/reward opportunity.
The high-conviction concentrated portfolio holds contrarian positions and avoids ‘herd mentality’.
Martin Currie Australia’s long-serving investment team’s forward-looking insights 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 25-40 securities is constructed on a bottom-up basis, taking into consideration stock limits as well as sectorial diversification.
| Portfolio characteristics | Australian Value Equity |
|---|---|
| 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 | 25 - 40 |
| Portfolio turnover | Typically 25% p.a. |
| Forecast tracking error | We do not target tracking error but is typically 5% p.a. (ex ante) |
| Inception | 26 October 2006 |
The characteristics shown are guidelines only and not hard limits.
A multi-lensed approach identifies the best opportunities
The powerful combination of our four different investment lenses provides a broad perspective of security expected returns.
Reece Birtles
Chief Investment Officer
Reece Birtles
- Job title
- Chief Investment Officer, Martin Currie Australia
- Experience
- 28 years
Michael Slack
- Job title
- Head of Australian Equity Research
- Experience
- 30 years
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
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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