Franklin Templeton has launched the Martin Currie Real Income Fund - Active ETF (R3AL) on the ASX.
According to Franklin Templeton, making the Martin Currie Real Income Fund available in an exchange-traded fund (ETF) wrapper will provide Australian investors with convenient access to the same long-term growth and income characteristics as the fund, which already has a proven 15-year track record.
In particular, R3AL aims to provide a pre-tax income yield above the S&P/ASX 200 index yield and to grow this income above the rate of inflation.
Moreover, the fund invests in a diversified portfolio of listed Australian and global developed market companies owning real assets and combines bottom-up fundamental and quantitative research to identify “the most attractive income opportunities”, Franklin Templeton outlined.
It will be managed by portfolio managers Ashton Reid and Andrew Chambers, in collaboration with the broader Martin Currie Australia investment team.
Commenting on the launch, Reid highlighted that, with ongoing market volatility, investors are increasingly seeking stable and growing income streams.
“Real assets are the backbone of society, so even in slower growth periods they offer a compelling, lower-risk income exposure,” Reid said.
“With positive earnings and dividend revisions now improving for quality real assets, the portfolio fundamentals look good. Unlike the unlisted world, listed real assets have now priced in higher interest rates so our portfolio offers attractive valuations.”
Expounding on this, Reid confirmed that the investment universe includes diversified exposures to three listed real asset sectors – real estate investment trusts, infrastructure and utilities – from Australia and global developed markets, driven by three secular megatrends.
“They include population growth which means more customers every day to maintain pricing power, energy demand that supports renewable generation, grid enhancements and electrification initiatives and the explosive technology and data driven by AI boosts demand for data centres, fibre networks and telco towers,” he said.
“We see consistent yield and rising income growth, which makes for an appealing total return in an uncertain market.”
Also speaking on the launch, Franklin Templeton Australia’s managing director, Felicity Walsh, said that R3AL complements its existing range of active ETFs.
“ETFs are increasingly being added to asset allocations across investment portfolios due to their flexibility, cost efficiency and ease of access. By bringing the Martin Currie Real Income Fund into an ETF structure, we are aligning with the evolving preferences of investors who want simple, transparent and scalable solutions to grow their wealth,” Walsh said.
“The delivery of this income-enhancing ETF reflects the firm’s ongoing dedication to empower investors with innovative tools to help them achieve their financial goals, backed by global expertise and deep local market insights.”
