Sponsored Legg Mason

Promoted by Legg Mason

Advisers attending Legg Mason's Sydney Symposium will hear first-hand how portfolio construction theory was modernised and risk-return charts flipped in developing a one-of-a-kind retirement income fund

It may seem like an obvious solution, but the thought of combining the building blocks of equity income, real income and fixed income for a blended retirement solution has eluded the Australian investment industry for a long time - until Legg Mason launched its Multi Asset Retirement Income Trust in April 2014.

The innovative 'building blocks approach to retirement income' will be the subject of Legg Mason's upcoming symposium in Sydney on September 16.

The event will include speakers from three Legg Mason affiliate fund managers: Martin Currie Australia, Western Asset and Permal as well as guest presenters Rice Warner, Catherine Robson from Affinity Private and a dealer group portfolio construction panel. The event is free for advisers to attend and CPD points will be awarded. To register, click here.

Legg Mason is the 2015 Fund Manager of the Year (Lonsec/Money Management) and has been an industry pioneer in developing retirement solutions that includes equity income, real income and now multi asset income.

The Multi Asset Retirement Income Trust is possibly the first of its kind in Australia and pleasingly has returned 12% after fees for the year to 30 June 2015. With a fee (ICR) of 0.8%, it's 10 basis points less expensive than a passive diversified fund, for a $30,000 minimum investment.1 Investors can access the fund via mFunds or directly with the fund manager by contacting Legg Mason on 1800 679 541.

Legg Mason believes the Trust may tick many retiree boxes: innovative fund design, strong performance, low fee and a growing income target. Added to that, the Legg Mason Multi Asset Retirement Income Trust itself was a finalist 'Investment Product of the Year' at the 2015 MAX Awards.

This is a fund built for retirees, with even a unique 'fifth distribution' designed to provide more stable cash distributions, by re-investing net realised capital gains as units back into the fund. This is designed to further grow the investor's capital base, a key principal in growing the income stream.

Advisers can choose the Trust 'off-the-shelf' which invests in an equal blend of equity income, real income and fixed income, or build their own solution on top of the blend, as each block is also available separately.

The Trust aims to provide a total return of CPI plus 4% annually, and grow the income stream in line with CPI.

In a very competitive industry that is Australian funds management, it's very rare that one fund manager can maintain a unique set of fund solutions before competitors start to move in, but that seems to be the case with Legg Mason's Real Income and Multi Asset Retirement Income options. Both funds are managed by its affiliate Martin Currie Australia and pleasingly, both are delivering above expectations and performance objectives.

1 www.vanguard.com.au. 

Any reference to "Legg Mason Australia" or "Martin Currie Australia" is a reference to Legg Mason Asset Management Australia Limited ABN 76 004 835 849 AFSL 240827. Martin Currie Australia is a division of Legg Mason Asset Management Australian Limited. Any reference to "Western" is a reference to Western Asset Management Company. Neither Legg Mason Australia, nor any of its related parties, guarantee the repayment of capital or performance of any of the trusts referred to in this document. Past performance is no guarantee of future performance. Applications to invest in a Legg Mason Trust can be made using an application form comprising part of the current Product Disclosure Statement, which is available from our offices or on our website at www.leggmason.com.au. Certain eligibility criteria applies. Legg Mason Australia does not guarantee the accuracy or completeness of this document. To the extent permissible by law, Legg Mason Australia accepts no liability in contract, tort (including negligence) or otherwise for any loss or damage suffered as a result of reliance on this document. This document does not constitute investment advice, and has not been prepared to take into account the investment objectives, financial objectives or particular needs of any particular person. Before making an investment decision you should read the Product Disclosure Statement carefully and you need to consider, with or without the assistance of a financial advisor, whether such an investment is appropriate in light of your particular investment needs, objectives and financial circumstances.