October 21, 2022: Leading investment research houses Lonsec Research and Zenith Investment Partners have issued new reports that assign ‘recommended’ ratings to two Martin Currie Australia Funds – the Sustainable Equity Fund and the Diversified Growth Fund.
Martin Currie Australia is the active equity specialist investment manager of Franklin Templeton Australia Limited (Franklin Templeton).
Lonsec has newly assigned a ‘recommended’ rating to the Martin Currie Sustainable Equity Fund, commending the firm’s Australian equities team as “one of the most experienced in Lonsec’s peer group” and its ESG framework as “well ahead of peers”. The Fund also received a Recommended rating from Zenith in June.
Zenith has recently upgraded the Martin Currie Diversified Growth Fund to a ‘recommended’ rating, which it says has benefited from the expanded investment universe opened up to Martin Currie when it became part of Franklin Templeton in 2020. The Fund was the only one upgraded by Zenith in their Multi-Asset (Diversified) sector this year. Zenith also reconfirmed the ‘recommended’ rating for the Martin Currie Diversified Income Fund. Lonsec reconfirmed the ‘recommended’ rating for the two Diversified Funds in March.
Franklin Templeton’s Managing Director and Head of Australia and New Zealand, Felicity Walsh says: “These ratings are a testament to the depth and breadth of our investment expertise, which allow us to deliver better outcomes for our clients. It is particularly pleasing to see the Martin Currie Sustainable Equity Fund recognised in these early years of its enhanced strategy implementation. This is testament to the quality of the investment professionals and strategy which we expect to resonate strongly with a wide range of our clients.”
The Martin Currie Sustainable Equity Fund is a long-only Australian equity product that uses a responsible investment approach focused on identifying companies that offer both compelling sustainability and financial returns.
Martin Currie applies negative screens to eliminate companies that are involved in harmful activities, such as the production of controversial weapons and human rights abuses, and then focuses on companies that make a positive contribution to sustainability.
It applies a proprietary carbon surcharge for those companies involved in the creation of carbon emissions and assigns a value rating, which represents a discount to fair value. The carbon surcharge is a tool for penalising the biggest emitters.
Lonsec says the Lead Portfolio Manager, Will Baylis, has been pivotal in successfully integrating ESG processes across Martin Currie’s suite of products. It says the manager’s investment process is “well structured and repeatable” and its ESG process has a “strong policy framework and clear public positioning.”
Baylis says: “Our investment philosophy is built around the belief that financial returns and sustainability are fundamentally intertwined over the long term.”
Since being converted to the Sustainable Equity process on 18 May 2020*, the Fund has produced an average net return of 13.9% p.a. to the end of September, compared with the average return of 11.6% p.a. for its benchmark, the S&P/ASX 200 Accumulation Index, over the same period.
The Martin Currie Diversified Growth Fund uses an “inter-funding approach” to invest in a range of separately managed portfolios across the Franklin Templeton group of managers, including Australian and global equities, listed real assets and Australian and global fixed income. It currently has investments in 13 sub funds.
Zenith says: “The breadth of the underlying portfolio has improved over time, with the inclusion of new strategies and sub-asset class exposures, particularly in the fixed income sector. We expect this will continue, as the local team develops further comfort with the strengths of the broader Franklin Templeton platform and identifies additional complementary strategies.”
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Learn more about the Martin Currie Sustainable Equity Fund here: https://www.martincurrie.com/australia/strategies/australia-sustainable-equity
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers boutique specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California based company has 75 years of investment experience and approximately AUD 2 trillion in assets under management as of July 31, 2022.
For more information, please visit https://www.franklintempleton.com.au/
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Disclaimers
This publication is issued for information purposes only and does not constitute investment or financial product advice. It expresses no views as to the suitability of the services or other matters described in this document as to the individual circumstances, objectives, financial situation, or needs of any recipient. You should assess whether the information is appropriate for you and consider obtaining independent taxation, legal, financial or other professional advice before making an investment decision. Please read the relevant Product Disclosure Statements (PDSs) and any associated reference documents before making an investment decision. In accordance with the Design and Distribution Obligations and Product Interventions Powers requirements, we maintain Target Market Determinations (TMD) for each of our Funds. All documents can be found via www.franklintempleton.com.au or by calling 1800 673 776. Issued by Franklin Templeton Australia Limited (ABN 76 004 835 849, AFSL 240827). Copyright © 2022. Franklin Templeton Australia Limited. All rights reserved.
*Prior to 18 May 2020, the Martin Currie Sustainable Equity Fund (‘Fund’) was named the Martin Currie Core Equity Fund (Inception: September 1998). Please see the Client Notice for information in regards to the key changes to the investment approach of the Fund. The performance data shown includes both past returns from the Martin Currie Core Equity Fund prior to 18 May 2020 and actual returns from the Martin Currie Sustainable Equity Fund. Past performance should not be relied upon as indicators of future performance of the Fund.
The rating issued (Martin Currie Sustainable Equity Fund – September 2022, Martin Currie Diversified Growth Fund – March 2022 & Martin Currie Diversified Income Fund – March 2022) is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit Lonsec.com.au for ratings information and to access the full report. © 2022 Lonsec. All rights reserved.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned Martin Currie Sustainable Equity Fund – 30 June 2022, Martin Currie Diversified Growth Fund - 30 September 2022) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines