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Legg Mason Property Securities Trust

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About the Trust

Investment Aim

To earn a before fees and tax return (over rolling three-year periods) of 1.5% p.a. in excess of the Benchmark.

Performance Benchmark

S&P/ASX 200 A-REIT Accumulation Index (a market index commonly used for an Australian property securities portfolio).

Technical Fund Details

About the Investment Strategy

The investment process is an active, diversified, security selection approach. This approach relies upon the analysis of individual securities rather than the application of economic or industry themes. The valuation of each property security is based on long-term cash flow based analysis. Our aim is to look through the short-term noise of each market cycle and to remain focused on the sustainability of cash flows. The key platform of our investment process is our proprietary research. A detailed valuation model is built for each security, which is underpinned by a focus on return on capital. An understanding of the key drivers, uncertainties and risks is developed and constantly reviewed for each security. The explicit forecasts of future profitability generated by our research are input to our in-house Dividend Discount Model. The Model then generates a valuation signal that is compared to the current market price of each security. This comparison produces a "return to fair value" which is used to rank all securities. The portfolio makes overweight allocations to the attractive securities and underweight positions are established in the expensive names.The portfolio is actively monitored, with the valuation signal driving each trade decision.

About the Investment Team

The assets of the Legg Mason Australian Property Securities Trust are managed by Legg Mason Australia, a dedicated asset management business that relies on fundamental research to provide superior investment outcomes for Australian institutional investors and platform providers.

Legg Mason Australia possesses a strong mix of fundamental research skills, quantitative analysis experience and market expertise.

General Trust Literature

Product Disclosure Statement

Application Form

Monthly Report

Quarterly Report

Risk Factors: Legg Mason Australia does not guarantee any profit or recovery of capital from an investment in the Trust. The NAV of the Trust will fluctuate in response to the changing values of the Trust's assets. It is important that you understand and accept the risks before you invest. A financial adviser can explain to you the risks and provide investment advice to suit your investment objectives. There is the risk that an investor's investment objective may not be met by their choice of investment.