Australian Active Insights Strategy

This Strategy invests in a diversified portfolio of ASX-listed equities, aiming to deliver a ‘goldilocks’ portfolio, efficiently positioned to achieve consistently higher returns than the benchmark with lower tracking error.

 

By leveraging pure fundamental insights from the investment team and minimising unnecessary style factor and sector risks relative to the S&P/ASX 200, the Strategy reduces the influence of style cyclicality and sector biases. Combined with disciplined risk control, this approach offers a differentiated alternative to traditional active fundamental portfolios, systematic smart beta, or passive strategies.

Why Invest in the Australian Active Insights Strategy

Key benefits of this Strategy include:

Alpha generated with lower tracking error and factor influence, independent of mean reversion, can reduce the risk of extended periods of under-performance that exceed the time horizon and relative risk tolerance of most investors.

The Strategy is designed to deliver enhanced portfolio efficacy, including stronger metrics such as information ratio and fee per unit of alpha. By generating alpha that is unbiased by common style factors, which may already be present elsewhere in a client’s portfolio it may be well-suited for asset allocations subject to Your Future, Your Super (YFYS) performance tests and tight tracking error targets or risk budgets.

Offering lower fees than traditional active strategies, this approach delivers cost-effective access to deep fundamental insights and Active Ownership from a highly experienced investment team. Combined with the disciplined risk control of a more systematic strategy, the Strategy provides a compelling balance of expertise and efficiency.

The Strategy plays a valuable role in modern portfolios, offering complementary exposure alongside passive or smart-beta factor strategies without adding style or sector risk, or acting as a replacement for traditional active fundamental strategies, either as a stand-alone solution or within a multi-manager Australian equity allocation.

Portfolio Management Team

The Australian Active Insights Strategy is co-managed by Matt Davison and Sam Li, and is supported by the broader ClearBridge Australian Equities Investment team through detailed fundamental research and quantitative analysis.

The Portfolio Management Team is employed by Franklin Templeton Australia Limited.

Matthew Davison

Matthew Davison

Managing Director, Portfolio Manager
Sam Li, CFA, PhD

Sam Li, CFA, PhD

Director, Portfolio Manager

What Makes Us Different

The Australian Equity Investment team has over 40 years of experience investing in Australian equities using a disciplined and repeatable multi-lensed investment approach.

Stock selection is grounded in bottom-up fundamental valuation research, supported by a disciplined risk framework. Risk is actively managed through multiple lenses — Quality, Short-Term Direction, and Long-Term Direction.

A proprietary mispricing process blends deep fundamental research with alpha and risk signals to identify stocks that help neutralise unintended style and sector biases.

Active Ownership is embedded directly within the investment process, with responsibility held by the research analysts and portfolio managers who make investment decisions. This integrated approach ensures that engagement and stewardship are aligned with deep fundamental insights and long-term value creation.

Key Portfolio Information

Growth of AUD $10,000

30 June 2026

As at 31 July 2026

Performance 1 Month 3 Months 1 Year 3 Years 5 Years Inception2
ClearBridge Australian Active Insights Strategy1 2.3% 4.5% 5.7% 10.2% 8.8% 9.8%
Excess Returns 0.0% 0.4% -0.3% -0.2% 0.8% 0.7%
S&P ASX 200 Index 2.3% 4.1% 6.0% 10.4% 8.0% 9.1%

As at 30 June 2026

  • Australian Active Insights Strategy
  • S&P/ASX 200 Accumulation Index

As at 31 July 2026

Top 10 Positions Sector Portfolio
Weight %
CSL Limited Health Care 3.4%
Aristocrat Leisure Limited Consumer Discretionary 3.2%
QBE Insurance Group Limited Non-Bank Financials 2.9%
ResMed Inc. CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Health Care 2.4%
Santos Limited Energy 2.2%
Medibank Private Ltd. Non-Bank Financials 1.9%
Bluescope Steel Limited Metals & Mining 1.4%
Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh Consumer Discretionary 1.4%
Block, Inc. Shs Chess Depository Interests Repr 1 Sh Non-Bank Financials 1.1%
Worley Limited Industrials 1.0%
Objective Long-Term Growth
Asset Class Equities
Style Core
Investable Universe Australian listed securities
Benchmark S&P/ASX 200 Accumulation Index
Market capitalisation All cap
Country limit N/A
Sector limit Benchmark +/- 6%
Security limit Benchmark +/- 4%
Number of stocks Typically 60
Portfolio turnover Typically 40% p.a.
Forecast tracking error Typically 2% p.a. (ex-ante)

 

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Franklin Templeton Australia Limited is the Responsible Entity and distributor for all ClearBridge managed Funds in Australia. To explore and access these Funds, you will be redirected to the Franklin Templeton website.

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Disclaimer

This information is provided on the basis that you are a wholesale investor in Australia. Any distribution of materials or products in Australia is by Franklin Templeton Australia Limited (FTAL).

FTAL (ABN 76 004 835 849) is part of Franklin Resources, Inc., and holds an Australian Financial Services Licence (AFSL No. 240827) issued pursuant to the Corporations Act 2001 (Cth). The ClearBridge Australian Equities Investment team, a division of FTAL, is operationally integrated under the “ClearBridge Investments” global brand, alongside ClearBridge Investments, LLC (“CBI”), and other ClearBridge entities indirectly, wholly owned by Franklin Resources, Inc.

The information on this website does not constitute an offer of, or an invitation to apply for securities in any jurisdiction where such an offer or invitation is unlawful, or in which the person making such an offer is not qualified to do so.

Past performance is not a reliable indicator of future performance.

The views expressed are opinions of the portfolio managers and are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. These opinions are not intended to be a forecast of future events, research, a guarantee of future results or investment advice.

Some of the information provided has been compiled using data from a representative account. This account has been chosen on the basis it is an existing account managed by the investment team of this strategy. Representative accounts for each strategy have been chosen on the basis that they are the longest running account for the strategy. This data has been provided as an illustration only, the figures should not be relied upon as an indication of future performance. The data provided for this account may be different to other accounts following the same strategy. The information should not be considered as comprehensive and additional information and disclosure should be sought.

The information provided should not be considered a recommendation to purchase or sell any particular strategy / fund / security. It should not be assumed that any of the securities discussed here were or will prove to be profitable. It is not known whether the stocks mentioned will feature in any future portfolios managed by the investment team. Any stock examples will represent a small part of a portfolio and are used purely to demonstrate our investment style.

The analysis of Environmental, Social and Governance (ESG) factors forms an important part of the investment process and helps inform investment decisions. The strategy/ies do not necessarily target particular sustainability outcomes.

Performance
1 Data presented is the ClearBridge Australian Active Insights composite in AUD, gross of fees. Periods over a year are annualised. The composite contains fully discretionary Australian Equity accounts containing diversified portfolios of Australian Equity securities. For comparison purposes the composite is measured against the S&P/ASX 200 Accumulation Index.
2 Composite inception date: 1 November 1988.

The Firm (defined for GIPS purposes as the ClearBridge Australian Equities Investment team, a division of FTAL) claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organisation, nor does it warrant the accuracy or quality of the content contained herein. To receive a complete list and description of composites and/or a presentation that adheres to the GIPS standards, please contact [email protected].

Sector Breakdown and Top 10 Stocks
Data shown for the ClearBridge Australian Active Insights representative account. Index: S&P/ASX 200 Accumulation.

The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable. References to particular industries, sectors or companies are for general information and are not necessarily indicative of the Strategy's holding at any one time

Risk Warnings – Investors should also be aware of the following risk factors which may be applicable to the Strategy:

  • Investing in foreign markets introduces a risk where adverse movements in currency exchange rates could result in a decrease in the value of your investment.
  • This Strategy may hold a limited number of investments. If one of these investments falls in value this can have a greater impact on the Strategy’s value than if it held a larger number of investments.
  • Smaller companies may be riskier and their shares may be less liquid than larger companies, meaning that their share price may be more volatile.
  • The Strategy may invest in derivatives (index futures) to obtain, increase or reduce exposure to underlying assets. The use of derivatives may restrict potential gains and may result in greater fluctuations of returns for the portfolio. Certain types of derivatives may become difficult to purchase or sell in such market conditions.