About Global Real income
The Martin Currie Global Real 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 Global Real Income strategy is the result of ongoing enhancements to our Australia and Asia Pacific Real Income strategies.
The strategy invests in a diversified portfolio of quality global listed Real Asset securities (such as REITs, infrastructure and utilities) whose growth is driven more by demographic themes rather than being pegged to the business or economic cycle.
Urbanisation is a global mega trend. Real Assets have unique leverage to 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 are driven by their leverage to the key demographic themes of population, urbanisation and middle-class growth. As a result, quality listed Real Asset securities can sustain dividends, grow distributions to match a rising 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 risk 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 attractive uncorrelated total return;
- an above average dividend yield;
- a lower-than-market total risk outcome; andli>
- a higher quality portfolio 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 | Global Real Income |
|---|---|
| Long-term objective |
To earn a pre-tax yield income yield above the MSCI AC World Index yield
To earn an after-fee return in excess of the Performance Benchmark* in Australian dollars over rolling three-year periods |
| Investable Universe | Global listed Real Asset securities |
| Benchmark | Benchmark unaware |
| Market capitalisation | All cap |
| Country limit | Max country weight 40% |
| Sector limit | Unconstrained |
| Security limit | Absolute 8% and Max 40% in securities >5% |
| Number of stocks | Typically 40 |
| Portfolio turnover | Typically 25% p.a. |
| Forecast tracking error | We do not target tracking error, but total risk outcome is typically <80% of the market. |
| Inception | July 2020 |
* The 50% FTSE EPRA/NAREIT Global Real Estate Index / 50% FTSE Global Core Infrastructure 50/50 Index
Not all Real Assets are created equal for income investors
The Martin Currie Global Real Income Asset team focus on identifying high-quality established ‘brownfield’ assets, avoiding riskier development in ‘greenfield’ projects.
Daniel Fitzgerald
Portfolio Manager
Andrew Chambers
- Job title
- Portfolio Manager, Real Assets
- Experience
- 26 years
Daniel Fitzgerald
- Job title
- Portfolio Manager, Real Assets
- Experience
- 21 years
Ashton Reid
- Job title
- Portfolio Manager, Real Assets
- Experience
- 29 years
We have put the income needs of clients at the heart of the product design for the Martin Currie Global Real Income strategy.
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
-
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
-
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
- Covid-19