Managed Funds Lincoln Aust Fund - I don't get it

A few people here are investing or soon will be investing in the Lincoln Australian Fund.

The retail fund charges 1.75% MER, has a history of less than 2 years, invests in the ASX300 like every other man and his dog, twice yearly distributions..

I don't get it, what's special about it?

 

Chasing returns, Glebe.

Mark

 

Methodology...

Do some reading on the fund and you'll see what it is all about and their approach.

I personally prefer it to DCT as a method for generating returns on blue chip ASX stocks. They understand the drivers of a stock's likely future performance and aim to buy low and hold. DCT just trades movements reactively and my experience is that it under-performs the ASX200 let alone the ASX200 accumulation index. So I was looking for a better vehicle for my ASX exposure.

I'm also reducing my ASX exposure by diversifying into some Platinum Asia and Challenger China, whilst also taking a more focussed ASX investment through JB Were resources. I wanted to retain a blue chip exposure but prefer the Lincoln approach. Horses for courses, and I like that horse...

Cheers,
Michael

 

MW is on the right track.

I believe they select stocks from a set of criteria which they input into their own propreitary software - Stock Doctor.

They put stocks into certain baskets/categories based on their fundmental analysis.

My accountant manages his own portfolio using their software. I remember him telling me about it 2 years ago and at that stage he had been using it for about 6 years. Says he averages about 20%p.a - not sure how he has done in the last couple of years.

 

I like their basic stock selection process but as always be careful.

A few years ago one of their 'Star Stocks' (ION) went from having their highest rating to being delisted in an extremely short period of time.

 

MW have you seen their distributions vs growth
they obviously dont just buy and hold
they have a lot of trading to generate distributions

Also they dont say exactly how they pick their stocks - nor should they
but you cant really say their method is good unless you are an insider
and know the exact criteria

 

I think this is a case of each to their own.

 

This is exactly what LICs do - and only charge 0.12% for the pleasure, 1.75% is alot over the long term and will ad up. And LIC performance dates back 20 years + not just 2

Maybe I'm missing something.. As Glebe said each to their own

EDIT - their performance has been great over the last 2 years though..

 

dkmc wrote:
"MW have you seen their distributions vs growth
they obviously dont just buy and hold
they have a lot of trading to generate distributions

Also they dont say exactly how they pick their stocks - nor should they
but you cant really say their method is good unless you are an insider
and know the exact criteria "

Why dont you go along to one of their information sessions and hear first hand - it is free and goes through their software, their methodology and past performances going back a number of years, more than just those years they have been public. The last session I attended there were over 400 happy customers who have been using the software to generate profits over many years. The purpose of using their software in addition to being in a managed fund is that a lot of the star stocks that come up are small caps, perhaps some have smaller liquidity than would be appropriate for a fund to trade, but nevertheless do make nice profits and why should you not be doing this as well as let the fund manager handle the large caps. When stocks no longer meet the criteria like ION mentioned elsewhere they are dropped out of the ratings and of course should be disposed of!

Anyway, attend a session in your city and make your own decisions.

 

Sounds like Clime with their Stockval product.

 

There is presentation on this Thurdays in Syndey

Lincoln - Intelligent Sharemarket Solutions

Cheers

 

Can anyone see what stocks they invest in? I can't see it on their web site...

 

From the PDS

As at 30/04/2007. Asset allocations may change over time.​

Top ten holdings​

Sally Malay Mining ​

​

SMY 4.93%
Monadelphous Group MND 4.74%
The Reject Shop TRS 3.73%
Seek Limited SEK 3.69%
CSL Limited CSL 3.62%
Bradken Limited BKN 3.58%
Zinifex Limited ZFX 3.54%
SMS Management SMX 3.31%
Cabcharge Australia CAB 3.23%
JB Hi-Fi Limited JBH 3.14%​

Total 37.51%​

 

Interesting, in October it was:

Code . Portfolio Holding . Percentage
BHP . BHP Billiton Limited . 13.45%
WBC . Westpac Banking Corp . 7.02%
QBE . QBE Insurance Group . 4.89%
RIO . RIO Tinto Limited . 4.78%
CSL . CSL Limited . 4.27%
SGB . St George Bank . 4.21%
.
Code . Portfolio Holding . Percentage
BKN . Bradken Limited . 3.58%
LEI . Leighton Holdings . 3.57%
ORI . Orica Limited . 3.56%
OXR . Oxiana Limited . 3.40%
. Total . 52.73%


Quite a switch

Taicat

 

Out of curiosity where did you get that info from tailcat?

I think their analysis is largely fundamental based - so they would likely only get new information to make changes to the portfolio when companies report?

 

From the website:

Lincoln Australian Share Fund

Tailcat

 

I was thinking exactly the same thing Glebe. I see the Reject Shop in their list - I think it's also a favourite of Clime. But then again so is Credit Corp, who took a 50% hit a week or two ago. Ouch. Clearly the market makes its own mind up, regardless of value / fundamentals!

But I do appreciate a fund with conviction, but then again I reckon Charlie Aitken's convictions are better ... he's been massive on resources, and I really feel dopey I didn't believe him when he said FMG will be a $100 stock within a couple of years (FMG has moved from $25 in the August dip to around $60 now). Mind you I guess he's wrong, since FMG are considering a 10:1 stock split!

 

Charlie has also said BHP will be the world's biggest company in a few years. We'll see...

 

Which fund does Charlie Aitken look after?

 

Charlie doesn't run a managed fund, he's a stockbroker for institutional clients at Southern Cross Equities.

Southern Cross Equities - Home

He's also a contributor to Eureka Report, I love his articles. If I followed his advice I'd be a millionaire!