Australian Dynamic Value Strategy

This Strategy invests in a diversified portfolio of ASX-listed equities, drawing on allocations from two complementary approaches: the style-factor neutral Australian Active Insights Strategy and the true-to-label Australian Value Equity Strategy.

 

This dynamic blend is designed to help investors benefit from shifts in the Value cycle, at the right time and with the right risk profile.

Why Invest in the Australian Dynamic Value Strategy

Key benefits of this Strategy include:

While equity markets are efficient over the long term, the market’s behavioural biases can create temporary mispricing. Investing in shares that are trading with an attractive discount to underlying value offers the potential for excess returns over the long term.

The Strategy balances the risk of being under or overweight the Value-style for the appropriate market conditions or prevailing value opportunity.

The Strategy's Switching Signal uses Valuations based on long-term earnings potential. This forward-looking methodology enables the prediction of style and economic turning points using fundamental forecasts, not mechanical models that rely on backward-looking data.

The Strategy rebalances directly from equity holdings in a transparent and cost-effective manner, avoiding the costs and delays associated with appointing or terminating managers. This flexibility ensures timely adjustments in response to changing market conditions.

When integrated into an existing Australian equity Core/Blend and Value-style allocation, the Strategy delivers a differentiated source of return, distinct from traditional equity portfolios and conventional value strategies.

Portfolio Management Team

The Australian Dynamic Value Equities Strategy is co-managed by Reece Birtles and Matthew Davison, 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.

Reece Birtles, CFA

Reece Birtles, CFA

Managing Director, Portfolio Manager, Head of Australian Equities
Matthew Davison

Matthew Davison

Managing 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.

This Strategy helps investors actively manage exposure to the Value style by identifying optimal points to underweight or overweight Value within the broader Value/Growth cycle.

This Strategy brings together the strengths of two complementary approaches: the style-factor neutral Active Insights Strategy and the true-to-label Value Equity Strategy. Combined in a single, diversified portfolio of ASX-listed equities, it offers investors a dynamic and balanced exposure across market styles and within one cohesive solution.

The Strategy’s view on market style dynamics is guided by a Switching Signal built on over 20 years of fundamental analyst insight. This forward-looking signal helps anticipate shifts in the investment landscape grounded in deep research rather than backward-looking data.

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

31 March 2026

As at 31 March 2026

Performance 1 Month 3 Months 1 Year 3 Years 5 Years Inception2
ClearBridge Australian Dynamic Value Strategy 1 -4.5% 2.2% 13.8% 10.4% 9.6% 9.2%
S&P/ASX 200 Accumulation Index -7.1% -1.6% 11.7% 9.5% 8.6% 8.2%
Excess Returns 2.6% 3.8% 2.1% 0.9% 1.0% 1.0%

As at 31 March 2026

  • Australian Dynamic Value Strategy
  • S&P/ASX 200 Accumulation Index

As at 31 March 2026

Top 10 Positions Sector Portfolio
Weight %		 Benchmark
Weight %		 Active
Weight %
BHP Group Limited Metals & mining 12.3% 9.9% 2.4%
ANZ Group Holdings Ltd Banks 7.0% 4.2% 2.8%
CSL Ltd. Healthcare 4.8% 2.6% 2.2%
Santos Ltd Energy 3.7% 1.0% 2.7%
QBE Insurance Group Ltd. Non-bank financials 3.1% 1.2% 1.9%
Lynas Rare Earths Limited Metals & mining 2.4% 0.7% 1.7%
Medibank Private Limited Non-bank financials 2.3% 0.5% 1.8%
Worley Limited Industrials 2.2% 0.2% 2.0%
AGL Energy Ltd Utilities 2.2% 0.2% 2.0%
BlueScope Steel Limited. Other materials 2.2% 0.4% 1.8%
Objective Long-Term Growth
Asset Class Equities
Style Value
Investable Universe Australian listed securities
Benchmark S&P/ASX 200 Accumulation Index
Market capitalisation All cap
Country limit N/A
Sector limit Benchmark +/- 12%
Security limit Benchmark +/- 7%
Number of stocks Typically 30-60
Portfolio turnover Typically 35% p.a.
Forecast tracking error Typically 3.5% p.a.

 

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Investing in the Australian Dynamic Value Strategy

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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 Dynamic Value 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 with a “value” or “core” investment style bias. For comparison purposes the composite is measured against the S&P/ASX 200 Accumulation Index.
2 Composite inception date: 1 May 2013.

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 Dynamic Value 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.