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Lincoln Vs Navra

Discussion in 'Managed Funds & Index Funds' started by Denis, 13th Sep, 2008.

  1. Denis

    Denis Well-Known Member

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    Lincoln Australian Share Fund monthly update
    Please click here for your Lincoln Australian Share Fund monthly fact sheet which details the Fund’s activity and performance information for the month 1 – 31 August 2008.

    Some good news!

    The Australian sharemarket had a positive month in August with the S&P/ASX 300 Accumulation Index increasing 4.04%, and the Lincoln Australian Share Fund outperformed the market by 2.31%, returning 6.35%.

    Additionally, the Lincoln Wholesale Australian Share Fund1 (the ‘Fund’) is ranked in the top 5 funds in the Australian Large Cap Growth Managed Funds category2 with a total return of 16.15% p.a. for the three years to 31 August 2008. The Fund has also achieved a 5 star Morningstar RatingTM for the same period – the highest possible for a managed fund.

    If you would like more information on the Fund, please call Matt Swartz, Senior Portfolio Analyst, Managed Investments on 1300 676 332.

    For further information on the Fund, Stock Doctor® or our financial health methodology, please call 1300 676 332 or visit Lincoln - Intelligent Sharemarket Solutions.


    Yours sincerely


    Tim Lincoln
    Managing Director

    Lincoln
    Intelligent sharemarket solutionsTM

    T 1300 676 332
    F 03 9854 9455
    Lincoln - Intelligent Sharemarket Solutions

    Lincoln Indicators Pty Ltd
    ACN 006 715 573
    AFSL 237740



    I received this email yesterday.I have used Stock Doctor in the past and have a healthy regard for this company.How has its performance compared to NI.
    regards

    Denis
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I just found their historic unit price data - it was hidden away and I only just stumbled across a link.

    I'll see if I can get the data into Compare Funds - although they don't seem to publish distribution data, but I can calculate an estimate based on their ex-distribution prices.
     
  3. Alan

    Alan Well-Known Member

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    Hi Denis.

    Using the Performance Calculator on the NavraInvest Site for 1/8/08 to 29/8/08:

    Oz Retail was 5.34%
    US Retail was 11.65% (another story I know.....)

    It will be interesting to see Sim's info when he gets it on Compare Funds.
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Okay - I've got some data into Compare Funds:

    Compare Funds

    It's not particularly valid to compare the two funds without consideration of the difference in strategy - Lincoln is a growth fund "The Lincoln Australian Share Fund is suited for medium to long term investors who are primarily seeking capital growth" ... while the Navra funds are income generating funds.

    You can see that over the past 12 months to date, Lincoln and Navra have returned about the same - but Lincoln with much higher volatility, which is to be expected for a growth fund.

    Similarly, long term performance of the Lincoln wholesale fund (retail has only been operating for just over a year), shows much higher overall returns - a much larger growth component with a very small income component (other than the large "special distribution" just prior to the launch of the retail fund).

    Lincoln also has a broader base - investing in ASX300 stocks rather than just the ASX200 that Navra focuses on. Looking at long term stats for similar broad-based Australian funds, the Lincoln Wholesale fund has outperformed pretty much everything (that I currently track) over the past 3 years - so it looks like a pretty good growth fund.
     
  5. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Comparing the two funds is like comparing a Harley to a Ferrari.

    Mark
     
  6. Denis

    Denis Well-Known Member

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    Why is that?
     
  7. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Because the funds aim to do two fundamentally different things.

    One is a growth fund and the other an income generating fund.

    If you want regular income then the Lincoln fund isn't a good choice - it pays very little in the way of distributions.

    If you want tax effective growth, then the Navra fund isn't a good choice - it pays higher distributions which are taxed in the year you earn them.
     
  8. Denis

    Denis Well-Known Member

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    I wasn't comparing the funds - they obviously have different trading methodologies and short term aims.
    I was looking for a comparison in performance.
    Surely, two funds that have been operating over three years can be measured against each other, when they both claim to be very conservative and able to consistently outperform their benchmark index.
    As an aside, using LOE strategy, an investor could simply margin a small portion of their growth fund to achieve much the same effect of NI paying a quarterly income.
    At some stage Performance can be measured and compared.
    Regards

    Denis
     
  9. TryHard

    TryHard Well-Known Member

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    Point of order gentlemen. Ferraris and Harleys do exactly the same thing - they encourage young girls to like old men, and are both 'size compensatory' vehicles. (yes that is a note of jelaousy you detect ;-)

    However Denis has a valid point ...

    :D
     
  10. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    But using your argument, you could then also compare the CFS Cash fund against the CFS Geared Share fund. Do you consider that a valid comparison?

    Surely it comes down to what you want to achieve with the fund as to which is more appropriate?
     
  11. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    This is absolutely an extremely important factor to consider when dtermining which funds to invest in. As an individual, you MUST ask yourself what it is you are trying to achieve and in what time frame.

    Saying 'I want to get rich' just doesn't cut it and you will almost certainly head in exactly the same direction as most 'investors' who walk into their local bank branch looking for impartial financial advice and get very little in return.

    Determiing your strategy (whatever it may be) will be the backbone of which funds are best for you over the long term. The Lincoln Fund provides for a specific niche (growth prospects) and the Navra Fund provides for a completely different niche (providing income for investors to hold negatively geared growth assets, namely direct property).

    If you are concerned about performance (as you should be), you need to first determine what sort of strategy you wish to follow, then compare the performance of funds that cater to that strategy.

    Mark
     
  12. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    When I get the time :rolleyes:, I'd like to build in some simulation capabilities to Compare Funds so that we can test various cashflow creation strategies using real data from a variety of managed funds.

    For example: investing $X with a goal of producing 10% of this as cashflow (2.5% paid out quarterly) to fund either investing expenses or lifestyle (each purpose has different tax implications).

    The basic model I'm thinking of is to take the first 2.5% of distribution each quarter and reinvest the rest, or if less than 2.5% for the quarter, to sell additional units to produce the 2.5% of the original invested amount - and apply this same strategy to different funds and compare the long term performance from both a before-tax and an after-tax point of view.
     
  13. ashwright

    ashwright Well-Known Member

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    This would be interesting to run though. I would assume you could get the CGT discount after the first year. I wonder if this would make the selling assets, more tax effective then dividends approach.

    Another interesting question would be how are the Navra distributions, are they mostly dividends or capital gains? And the same question could be asked of Lincoln.
     
  14. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    My understanding (happy to be corrected by one of the accountants) is that if you have shares, which you periodically, say every month or every quarter, sell down in order to live (or pay for investments or whatever) then the ATO may look at it as drawing down an income and tax it accordingly.

    Mark
     
  15. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Navra produces income from trading shares - and the ATO treats that as income. So the vast majority of the distribution paid out from Navra is regular income, with a small amount of dividend income (with some franking) too.

    Lincoln focuses on growth, and from what I've seen of their income distribution, it is quite small - and I'm guessing largely from dividends (I haven't seen a tax breakdown).