Australian Real Income Strategy

This Strategy invests in a diversified portfolio of listed Real Assets, including REITs, infrastructure, and utilities from Australia and other developed markets. The Strategy aims to deliver a consistent and growing income stream.

 

With a benchmark-unaware, actively managed approach, it offers a differentiated solution focused on income certainty, asset diversification, and long-term investor outcomes.

Why Invest in the Australian Real Income Strategy

Key benefits of this Strategy include:

By focusing on high-quality, consistent dividend-paying listed Real Assets and employing a portfolio construction approach that avoids income concentration, the Strategy provides access to a more predictable income stream with inflation protection, regardless of economic cycles or short-term stock price movements.

As income is a greater driver of total returns, Real Assets typically exhibit lower total volatility compared to broader equity markets or sector-specific strategies, providing greater income stability.

The multi-sector blend of high-quality Real Assets has lower economic sensitivity and lower correlation to equity markets, offering diversification benefits and a differentiated source of income and growth.

Listed Real Assets provide liquidity, pricing transparency, diversification and trading cost benefits not typically found in direct investments or unlisted funds.

Positions aligned with population growth, energy demand and data growth megatrends allow the Strategy to benefit from future growth opportunities.

Portfolio Management Team

The Australian Real Income Strategy is co-managed by Andrew Chambers and Ashton Reid, 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.

Andrew Chambers

Andrew Chambers

Managing Director, Portfolio Manager
Ashton Reid, CFA

Ashton Reid, CFA

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 targets listed Real Assets primarily from global developed and emerging market countries that serve essential-use functions. The focus is on dominant assets supported by local population growth, offering recurring, inflation-linked cash flows, strong pricing power, robust balance sheets, and a preference for incremental, brownfield expansion.

Constructed with a benchmark-unaware approach, the portfolio is designed to minimise concentration risks, reduce income shocks, and protect against capital impairment.

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 Real Income Strategy 1 -5.0% -5.0% 7.2% 7.4% 6.6% 11.1%

As at 31 March 2026

As at 31 March 2026

Top 10 Positions Region Sector Portfolio
Weight %		 Forward
Yield %
Aurizon Holdings Limited Australia Industrials
Railroads & Ports 		7.1% 6.2%
Scentre Group Australia Real estate
Retail REITs 		6.7% 5.6%
APA Group. Australia Utilities
Pipelines 		6.6% 5.9%
Transurban Group Australia Industrials
Toll Roads 		6.0% 5.1%
Digital Realty Trust Inc United States Real estate
Data Centre REITs 		5.5% 2.8%
Chorus Limited Australia Communications
Communications Infra 		5.5% 6.7%
Stockland Australia Real estate
Diversified REITs 		5.1% 5.9%
AGL Energy Ltd Hong Kong Utilities
Multi-Utilities 		4.4% 4.9%
Dexus Australia Real estate
Office REITs 		3.8% 6.2%
Vicinity Centres Australia Real estate
Retail REITs 		3.4% 5.5%
Objective Income
Asset Class Listed Real Assets
Style Income
Investable Universe Australian and global developed market listed Real Asset securities
Benchmark No formal benchmark
Market capitalisation All cap
Regional limit Up to 20% in non-ASX securities from global developed markets
Sector limit None
Security limit Absolute 9%
Number of stocks Typically 35
Portfolio turnover Typically 25% p.a.
Forecast tracking error We do not target tracking error but total risk outcome is typically 90% of the market.

Investing in the Australian Real Income Strategy

Ready to Invest?

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.

Explore the Real Income Fund

Institutional Investors

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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 Real Income composite in AUD, gross of fees. Periods over a year are annualised. The composite contains fully discretionary Australian accounts containing diversified portfolios of Australian and global listed real estate investment trust, utility, infrastructure and like securities. The composite aims to provide a consistent income stream over a full market cycle of three to five years and increase income in line with inflation (as measured by the Consumer Price Index). The composite adopts a benchmark unaware investment approach and therefore does not have a benchmark.
2 Composite inception date: 1 December 2010.

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].

Regional & Sector Breakdowns, and Top 10 Stocks
Data shown for the ClearBridge Australian Real Income representative account.

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.

Forward Yield is calculated for the next 12 months using the weighted average of broker consensus forecasts of each portfolio holding – because of this, the returns quoted are estimated figures and are therefore not guaranteed and may differ materially from the figures mentioned. The figures may also be affected by inaccurate assumptions or by known or unknown risks and uncertainties. In respect of the broker consensus data the number of brokers included for each individual stock will vary depending on active coverage of that stock by a broker at any point in time. A median of brokers is typically utilised. All estimates avoid stale forecasts which are removed after a certain number of days.

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.
  • Income Strategy charges are deducted from capital. Because of this, the level of income may be higher but the growth potential of the capital value of the investment may be reduced.