Australian Sustainable Equity Strategy

This Strategy invests in a diversified portfolio of ASX-listed equities, aiming to create long-term value through an actively managed selection of companies assessed using a proprietary framework that integrates both sustainability and financial attributes.

 

This distinctive approach results in a portfolio that stands apart from both traditional equity strategies and conventional sustainability-focused offerings.

Why Invest in the Australian Sustainable Equity Strategy

Key benefits of this Strategy include:

The investment process starts with bottom-up fundamental research by our specialised industry analysts.

The positive tilt towards companies with more favourable proprietary Sustainability and Shadow Carbon Cost assessment results in a portfolio with a lower carbon footprint and more attractive sustainability attributes relative to the market.

By focusing on Valuation, and incorporating our Quality, Direction Short-Term and Direction Long-Term lenses for risk control, we invest in stocks that are undervalued based on their financial and sustainability characteristics, and investors can benefit as these valuation opportunities are recognised by the market.

By having a seat at the table as investors and proxy voters, we can develop strong ongoing relationships with investee companies and challenge them towards more sustainable business practices and long-term value for clients.

Portfolio Management Team

The Australian Sustainable Equity Strategy is co-managed by Reece Birtles, Naomi Bant, and Chris Schade, 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
Naomi Bant, CFA

Naomi Bant, CFA

Director, Portfolio Manager
Chris Schade, CFA

Chris Schade, CFA

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.

The Strategy seeks companies that deliver more benefit than harm to society, are led by management teams actively addressing sustainability risks, and have a clearly articulated pathway toward a sustainable environmental, social, and economic future.

Rather than applying blanket exclusions based on specific activities, the Strategy focuses on identifying companies with the capacity and commitment to improve their sustainability practices and the potential to benefit financially as they progress.

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 August 2026

As at 31 August 2026

Performance 1 Month 3 Months 1 Year 3 Years 5 Years Inception2
ClearBridge Australian Sustainable Equity Strategy1 3.8% 7.4% 11.3% 12.8% 9.3% 12.9%
S&P/ASX 200 - Total Return 1.5% 4.5% 4.4% 11.2% 7.8% 11.5%
Excess Returns 2.3% 2.9% 6.9% 1.6% 1.5% 1.4%

As at 30 June 2026

  • Australian Sustainable Equity Strategy
  • S&P/ASX 200 Accumulation Index

As at 31 August 2026

Top 10 Positions Sector Portfolio
Weight %
CSL Limited Health Care 7.7%
ResMed Inc. CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh Health Care 5.6%
QBE Insurance Group Limited Non-Bank Financials 4.0%
South32 Ltd. Metals & Mining 3.7%
Lynas Rare Earths Limited Metals & Mining 3.4%
Suncorp Group Limited Non-Bank Financials 3.0%
Worley Limited Industrials 2.9%
Amcor PLC Shs Chess Depository Interests Other Materials 2.8%
Orica Limited Other Materials 2.7%
IGO Limited Metals & Mining 2.1%
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 +/- 11%
Security limit Benchmark +/- 6%
Number of stocks Typically 40
Portfolio turnover Typically 30% p.a.
Forecast tracking error Typically ~3% p.a. (ex-ante)

 

Download latest Proxy Voting Disclosure Report

Investing in the Australian Sustainable Equity Strategy

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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 Sustainable Equity 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 that have long-term sustainability in their business models. For comparison purposes the composite is measured against the S&P/ASX 200 Accumulation Index.
2 Composite inception date: 1 June 2020.

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 Sustainable Equity 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.