CFS selects Martin Currie to manage investment mandate

Colonial First State (CFS) has awarded Franklin Templeton subsidiary, Martin Currie, an Equity Income mandate to be made available on its FirstChoice platform.

This comes in the wake of preceding manager, First Sentier Investors (FSI), winding up its Australian-based global credit, Australian fixed income, equity income and emerging companies’ teams.

“We are pleased to be awarded this mandate and recognised for our expertise in managing income-generating funds,” Franklin Templeton Managing Director, Australia and New Zealand, Felicity Walsh, said.

“This appointment is a testament to the Martin Currie team’s unique investment approach that aligns stock selection and portfolio construction with the income needs of Australian clients.”

The Martin Currie Equity Income Fund, currently Recommended by Lonsec and Highly Recommended by Zenith, offers an after-tax income yield above the S&P/ASX 200 Index and to increase that income above the rate of inflation.

“The Martin Currie Equity Income Fund aims to identify the most attractive income opportunities by combining extensive bottom-up fundamental and quantitative research with disciplined portfolio construction,” Reece Birtles, Chief Investment Officer at Martin Currie Australia, said.

“We also manage it in a tax-aware manner to maximise the benefit from franking credits for investors with a low or zero marginal tax rate.

“We believe ESG analysis, engagement and voting should be done by those making investment decisions rather than being outsourced. Our research analysts and portfolio managers are best equipped to understand the ESG risks, opportunities, and impacts facing the companies they invest in.”