“Our AMP income models are designed to provide an innovative and optimal blend of best-of-breed funds to our adviser network. We have included the Real Income Fund on the basis that it is specifically designed for retiree income. We believe its broad exposure beyond A-REITs can provide a more robust solution in the property sector,” said Luke Mandekic, manager, model portfolios, at AMP Advice Research.
The Real Income Fund aims to provide an attractive income stream with natural inflation protection by investing in a blend of A-REITs, listed infrastructure and utilities. The fund currently has a 52 per cent weight to A-REITs, 37 per cent weight to listed utilities and 11 per cent invested in listed infrastructure.
The fund’s strategy was launched in 2011 and it has grown to $470 million, with increasing financial adviser demand, Legg Mason’s head of sales, Beau Titchkosky, said.
“We are receiving strong demand from both portfolio constructors seeking an alternative to stand-alone A-REITs, as well as advisers seeking an attractive income solution in a low interest rate environment.”
The Legg Mason Martin Currie Real Income Fund returned 19.6 per cent per annum in the three years to September 2015 after fees.
The fund’s low-risk profile and drawdown was highlighted in the September quarter when the S&P/ASX200 Index declined by 6.6 per cent, while the Real Income Fund was up 2 per cent after fees.
