Actively investing across a diversified range of Australian asset classes, including equities, listed real assets, fixed interest and cash, this strategy is delivering results for investors, especially retirees seeking regular income, says Andy Sowerby, Managing Director Legg Mason Australia.

The multi-asset approach invests in a blend of Martin Currie Australia’s award-winning Real Income strategy, innovative Equity Income strategy, and is complemented by the Australian Fixed Income and Cash capabilities of fellow Legg Mason-affiliate Western Asset Management.

“It’s no surprise to us that this fund was rated as the number one performing fund by Morningstar against 135 other similar balanced funds, and has delivered 11.9% p.a. total returns (net of fees) over the past three years.” says Sowerby.

Martin Currie Australia Portfolio Manager, Will Baylis, says: “We believe that a retirement income strategy and asset mix should be very different to a typical balanced fund strategy for people in the accumulation phase of their investments. Based on robust feedback from investors, we set out to deliver a fund for retirees that not only provides reliable income that exceeds the rate of inflation, but also reduces the need to draw down on capital, thus increasing the likelihood that Australian retirees achieve the income needed for a comfortable retirement.

“The multi-asset combination provides retirees with the expected benefits of low volatility (from fixed income), inflation protection (from real assets) and long-term income growth (from equity income), which minimises the need to draw down on capital and provides higher income.

“We use dynamic asset allocation to ensure lower capital volatility than equity indices, and less income volatility than cash, but much higher income than what can be achieved investing only in cash or term deposits.

“The fund continues to exhibit overweight allocations to Legg Mason Martin Currie Equity Income Trust and Real Income Fund, and a corresponding underweight to the Legg Mason Western Asset Australian Bond Trust. This is based on our forward yield expectations for each of the underlying funds,” says Baylis.

Sowerby adds: “The Diversified Income strategy brings together Martin Currie Australia’s deep understanding of the income needs of retirees, and a 40+ year pedigree in managing balanced funds. The Legg Mason Martin Currie Diversified Growth Trust, which is targeted at accumulation investors, for example, has also achieved a five-star Morningstar Rating * over five years and delivered 13.8% p.a. total return (net of fees) and is ranked 1st of 196 funds over 5 years in Morningstar Multisector Growth Category as at 31 May 2017..”

Both the Legg Mason Martin Currie Diversified Income Trust and the Diversified Growth Trust have received a Zenith rating of “Approved” and a “Recommend” rating from Lonsec.

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