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Lincoln Aust Fund - I don't get it

Discussion in 'Managed Funds & Index Funds' started by Glebe, 16th Nov, 2007.

  1. Glebe

    Glebe Well-Known Member

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    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?
     
  2. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Chasing returns, Glebe.

    Mark
     
  3. MichaelWhyte

    MichaelWhyte Well-Known Member

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    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
     
  4. willy1111

    willy1111 Well-Known Member

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    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.
     
  5. Alan

    Alan Well-Known Member

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    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.
     
  6. dkmc

    dkmc Well-Known Member

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    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
     
  7. Glebe

    Glebe Well-Known Member

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

    FrankGrimes Well-Known Member

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    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..
     
  9. redrover

    redrover Well-Known Member

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    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.
     
  10. Glebe

    Glebe Well-Known Member

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    Sounds like Clime with their Stockval product.
     
  11. handyandy

    handyandy Well-Known Member

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  12. Mark Leo

    Mark Leo Well-Known Member

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    Can anyone see what stocks they invest in? I can't see it on their web site...
     
  13. willy1111

    willy1111 Well-Known Member

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    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%​
     
  14. tailcat

    tailcat Well-Known Member

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    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
     
  15. willy1111

    willy1111 Well-Known Member

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    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?
     
  16. tailcat

    tailcat Well-Known Member

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  17. Rod_WA

    Rod_WA Well-Known Member

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    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!:p
     
  18. Glebe

    Glebe Well-Known Member

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

    voigtstr Well-Known Member

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    Which fund does Charlie Aitken look after?
     
  20. Glebe

    Glebe Well-Known Member

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    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! :eek: