Legg Mason Martin Currie Ethical Values With Income Fund

Product Name

Legg Mason Martin Currie Ethical Values With Income Fund


Legg Mason Australia




Fund or Trust



Certified Since


Asset Classes

Australian only equities



Investment Approaches

Negative Screening, ESG Integration

It Includes:

  • Investment2 More sustainable companies

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 45 Genetic engineering
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

It fully excludes:

  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations


The Fund seeks to provide a growing income stream by investing in a diversified portfolio of ethically screened high quality companies. The investment manager’s approach is premised on the philosophy that high-quality companies that have solid earnings can sustain dividends, match rises in the cost of living and are likely to be less volatile than the wider equity market. The investment manager relies on complementary fundamental and quantitative research, and collective insights into the current investment landscape, to identify the most attractive opportunities. The Fund is managed in a tax-aware manner in order to potentially benefit from franking credits.


The Fund predominately invests in Australian listed securities. The Fund aims to hold investments so that at the time of purchasing securities:
·       exposure to an individual stock is no more than 6% of the portfolio; and
·       exposure to an individual sector (as determined by Martin Currie Australia) is no more than 25%.

Martin Currie Australia actively screens out companies that do not meet the Fund’s ethical investment criteria. The Fund does not invest in companies that have any of the following characteristics:

· Companies with revenues related to any one of the following activities that represent more than 5% of the company’s total revenue, or revenues from a combination of any of the following activities (“Excluded Activities”) that represent more than 10% of the company’s total revenue:
  • Alcohol; Adult entertainment; Defence and weapons; Fur; Gambling; Genetically modified crops; Nuclear power; Tobacco

· Companies that either:
  • generate more than 20% of their total earnings before interest, taxes, depreciation and amortisation (EBITDA) from thermal coal power generation; or
  • generate more than 20% of their total revenue from the mining of thermal coal.

· Companies that, in the opinion of Martin Currie Australia, are not operating in accordance with widely accepted international norms and principles, including the:
  • Universal Declaration of Human Rights; International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work; United Nations Global Compact; United Nations policy on trafficking in humans; OECD Guidelines for Multinational Enterprises; and the Catholic Health Australia Code of Ethical Standards.
Martin Currie Australia utilises various services, including MSCI ESG Impact Monitor, to assess ESG controversies involving publicly listed to ensure that there are no material ESG controversies before that company can be potentially included in the portfolio. 

Other products certified by the Responsible Investment Association Australasia (RIAA)

Legg Mason Martin Currie Ethical Income Fund

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