Frequently asked Questions

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What types of managed funds does Lincoln offer?

Australian Growth Fund

Our Lincoln Australian Growth Fund is an actively managed portfolio of high-quality growth-orientated ASX stocks. It may suit investors who are looking for strong capital appreciation over a period of five to ten years or more.

Read more about our Growth fund

Australian Income Fund

The Lincoln Australian Income Fund offers a stable and reliable, high-dividend yield with potential for long-term capital growth. It is ideal for investors on a marginal tax rate who would like to maximise their income stream and take advantage of franking credits.

Read more about our Income fund

U.S. Growth Funds

The Lincoln U.S. Growth Funds are an actively managed, diversified portfolio of U.S. growth stocks. They have been created to help Australian investors spread portfolio risk by diversifying their growth stock holdings outside of the Australian market. There are two funds open for investors – The Lincoln U.S. Growth Fund Hedged and Lincoln U.S. Growth Fund Unhedged.

Read more about our U.S. Growth Funds

What is a Lincoln retail managed fund?

Lincoln’s retail managed funds are designed to cater for individual investors with a lower minimum investment amount, starting from $5,000. They also have the option of regular saving plan options to help boost their future contributions.

What is a Lincoln wholesale managed fund?

Lincoln’s wholesale managed funds are designed to cater for professional investors with significantly higher minimum investment amounts, in excess of $250,000 per fund.

How are the Lincoln Funds structured?

Equity Trustees Limited ABN 46 004 031 298 AFSL 240975 is the Responsible Entity of the Lincoln Indicators managed funds. Equity Trustees has appointed Lincoln Indicators  as the investment manager of the funds –  Lincoln Australian Income Fund, the Lincoln Australian Growth Fund and the Lincoln U.S. Growth Funds.

J.P. Morgan Chase Bank (J.P. Morgan) was appointed as custodian to hold the assets of the Funds and to perform certain administrative functions in relation to the Funds.

 

How do I become an investor?

You must carefully review the Production Disclosure Statement (PDS) and Reference Guide before applying to invest in one of Lincoln Indicators Managed Funds. Once reviewed, you can apply using the Application Form accompanying the PDS or via an online application.

The online application is for new investors only and cannot be used to make additional investments in to an existing Lincoln Fund.

Is It Safe To Invest In High Return Investments?

Investing of every kind comes with some degree of risk. However, risk can and should be minimised to invest profitably. With our proprietary methodology, you can feel comfortable knowing that our investment process rigorously analyses stocks in our managed funds and stock portfolio management software, ensuring that you invest in financially healthy stocks that align with your risk-appetite and investment objectives.

Do Lincoln Indicators Give Analysis on Every High Return Stock in the Australian Stock Exchange Market?

Yes. We carry out a thorough analysis of all high-return investment stocks in the Australian stock exchange market to ensure that our clients only invest in stocks that are fundamentally financially healthy, can ride out short-term volatility, and deliver strong capital appreciation over the long term.

How Can I Invest in Lincoln Indicators Managed Funds Investments?

Apply online or call us on 1300 676 333 to learn more about the products and services we offer.

Lincoln Australian Growth Fund

What is the Lincoln Australian Growth Fund?

The Lincoln Australian Growth Fund is designed for investors who seek a diversified portfolio of high-quality growth stocks that has capital appreciation over the long-term as its primary goal.

What is the minimum investment?

The minimum investment in the Growth Fund is $250,000 for Wholesale investors and $5,000 for Retail investors.

Am I locked into my investment?

No, the Growth Fund has no minimum investment timeframe and you will not be penalised if you decide to redeem your funds within a short period of time. But we suggest a minimum of 5-years to allow an adequate timeframe for the Fund to deliver on its long-term objectives.

How often are distributions paid?

Distributions are paid twice a year, with the option to reinvest or receive cash directly in to your nominated bank account.

When did the Growth Fund start?

The Wholesale and Retail Growth Funds started in January 2005 and June 2007 respectively.

Are there any up-front or exit fees?

No, our Growth Fund have no up-front or exit fees. This does not take into account buy-sell spreads, which represent the estimated transaction costs incurred when buying or selling underlying assets in relation to investment options. The difference between the investment option buy prices and the sell prices is the total buy-sell spread for that option.

Can I reinvest my distributions?

Yes, you have the option to reinvest your distributions.

How quickly can I set up my investment?

Provided we receive the completed application forms, any required certified documents, clear money received in the bank account in a timely manner and successfully passing the compliance checks (e.g. the Anti-money Laundering and Counter-Terrorism Financing). It may take up to five business days to process.

What is the management fee for the Fund?

The Growth Fund has a management fee of 0.76% per annum for the Wholesale Fund and 1.40% for the Retail Fund.

How is the performance fee calculated?

The performance fee is 20% of the amount by which the Fund’s performance exceeds the All Ordinaries Accumulation Index. A high-water mark ensures investors do not pay fees until periods of underperformance are fully recouped.

What Type of High Return Investments Do Lincoln Indicators Offer?

Lincoln Indicators offers high return investments in the form of income (dividend) and growth stocks. Whatever your investment objectives are, consistent dividend payouts or capital gains, Lincoln Australian Growth Fund and Lincoln Australian Income Fund can help you achieve them.

By looking through the financials of all the companies listed on ASX, our quantitative methodology helps to identify financially healthy, high-return investments. Our approach has consistently delivered strong risk-adjusted returns protected against volatility as much as possible.

What should I look for when investing in an Australian Growth Stock?

A growth stock should have: higher than average growth rates and at least 3-5 years of growth track record, low or no debt, healthy future growth prospects, such as strong brand recognition and market share gains in their industry sector.

For investors seeking a managed fund, the Lincoln Indicators Australian Growth Fund may be an option. If you have an SMSF (Self Managed Super Fund) or are a self-directed investor, our Stock Doctor Star Growth Stocks provide investors, both new and established, with all the tools required for investment growth.

What is growth investing?

Investing in growth companies through growth stocks or growth funds offers investors a high growth potential portfolio comprised of companies that may ride out short-term market volatility while continuing to deliver strong growth in the long term

Growth stocks are companies that have stronger than average growth rates and higher than average valuations relative to the larger market. Investors should look for higher than average growth rates, strong growth track records and financially healthy companies with sustainable competitive advantages to help them ride out short-term market volatility and continue delivering strong growth over the long term.

Lincoln Indicators Star Growth Stocks should be seen as a potential component of any growth portfolio, but they may not be suitable for all investors. Before investing, you should consider your own circumstances and objectives to decide if these investments will suit you. If in doubt, seek professional financial advice.

What is a growth fund?

A growth fund is a collection of assets that invests in stocks, bonds and other securities designed to provide capital appreciation. This typically includes shares from Australian and overseas companies as well as fixed interest, cash and even alternative investments such as property or commodities. Growth funds aim to out-perform the market by investing their assets into high-growth companies with potential for growth in the future.

How is a growth fund different from an index fund?

Index funds are designed to follow indices. They aim to replicate the performance of these indices by investing their assets into all of the securities in that index.

Growth funds, on the other hand, are actively managed, meaning that analysts research and select stocks for the portfolio. They aim to out-perform their chosen index by out-performing half of it through stock selection. They assess individual stocks through fundamental analysis. This involves assessing key company information such as financial statements, industry position and management quality to determine whether the stock is worthy of investment or should be passed over for another opportunity.

What are some tactics I can use to limit downside risk with growth stocks?

There are a number of things you can do before and after investing to mitigate the risk of loss on your growth stocks.

Before buying: Limit your exposure – don’t invest more than 5% of your total portfolio in one stock; diversify as much as possible among different markets (such as local and overseas) and industries; look for high levels of cash flow with a visible track record.

After investing: Keep an eye on valuations – if you can’t find opportunities with high growth prospects at low valuation levels, it’s probably not the right stock for your portfolio.

After investing in growth stocks, it’s important to have a comprehensive strategy; pay attention to news and analyst upgrades or downgrades to determine how your holding is performing relative to the market; review your portfolio on a regular basis – perhaps quarterly or twice per year at minimum and determine whether your stocks are still appropriate for your risk tolerance that match your investment goals; stick with your investment time frame or plan. If necessary, shift portfolio allocations to benefit from changing conditions in the market.

How can I determine growth stocks with long-term potential?

Growth stocks are typically companies that have strong fundamentals and a visible track record of increasing dividends over time. This will indicate business stability and long term viability. The rate of dividend growth should be above inflation and take into account the company’s sustainable competitive advantage.

Investing in stock for growth is all about finding companies that can out-perform their peers by delivering strong revenue and earnings growth through increased demand, economies of scale and efficient cost management over time. Look for companies with a long-term business and management strategy and strong financials. Strong balance sheets show a company’s liquidity and ability to weather economic storms, while high levels of revenue and earnings growth indicate the potential for increasing dividends in future.

How do I identify high growth stocks?

High growth stocks are companies with strong long term earnings growth rates. These companies typically have revenue and profits that grow faster than the market average and usually have a high return on invested capital. These stocks also tend to trade at elevated valuation multiples because the market is expected to pay a premium for strong future earnings growth.

What do I need to consider before investing in Australian Growth Stocks?

When considering whether it is appropriate for you, before choosing a growth fund, investors should think about the type of investor they are, their financial situation and the level of risk that they are comfortable with. In addition to this, investors should consider how long they wish to hold their investment for and whether they will need access to any part of their capital in the future.

Lincoln Australian Income Fund

What is the Lincoln Australian Income Fund?

The Lincoln Australian Income Fund invests in the share market with the aim to deliver an above benchmark yield including franking credits, whilst also providing the opportunity of some capital growth over the medium to long-term. It is designed for those seeking a regular income stream from their investments from a base of high-quality stocks.

What is the minimum investment?

The minimum investment in the Income Fund is $250,000 for Wholesale investors and $5,000 for Retail investors.

Am I locked into my investment?

No, the Income Fund has no minimum investment timeframe and you will not be penalised if you decide to redeem your funds within a short period of time. But we suggest a minimum of 5-years to allow an adequate timeframe for the Fund to deliver on its long-term objectives.

How often are distributions paid?

Distributions are paid quarterly, with the option to reinvest or receive cash directly in to your nominated bank account.

When did the Income Fund start?

The Income Fund was established on 2 April 2012.

Are there any up-front or exit fees?

No, our Income Fund have no up-front or exit fees. This does not take into account buy-sell spreads, which represent the estimated transaction costs incurred when buying or selling underlying assets in relation to investment options. The difference between the investment option buy prices and the sell prices is the total buy-sell spread for that option.

Can I reinvest my distributions?

Yes, you have the option to reinvest your distributions.

How quickly can I set up my investment?

Provided we receive a completed application form with the required identification documentations, cleared monies received in the application bank account and successfully passing the compliance checks (e.g. the Anti-Money Laundering and Counter-Terrorism Financing). It may take up to five business days to process the application request.

What is the ongoing management fee for the Fund?

The Income Fund has an ongoing management fee of 0.95% per annum for the Wholesale Fund and 1.75% for the Retail Fund.

Is there a performance fee?

No, the Income Fund has no performance fee.

What is a buy/sell spread?

The buy and sell spread is the difference between the net asset backed value of the units and the price to which you can purchase or sell those units. Similar to brokerage costs, when you transact in financial assets there are facilitation costs incurred. The buy/sell spread are implemented to recoup facilitation costs, so as not to disadvantage existing unitholders. It is important to note that the buy/sell spread is not a ‘fee’ and the spread itself is retained within the unit trust, it does not benefit the fund manager or any of the other service providers.

The purpose of the buy and sell spread is to ensure that investors entering or leaving a fund bear the costs of the transaction. For example, if you invest $100,000 into a fund, the fund manager will incur transaction costs which include brokerage, bid-ask spreads, settlement and clearing costs. Likewise, if you withdraw from a fund, the manager will incur transaction costs if he/she need to sell assets to provide the cash for withdrawal.

You are likely to pay a buy spread whenever you either make an investment or withdrawal from the fund. However, there are some exceptions. For example, when distributions are reinvested into more units, a buy spread is not usually payable. This is because no money enters or leaves the fund, so no assets are required to be bought or sold.

If you are a long-term holder of a fund, then a buy sell spread will make less difference to your overall returns.

Lincoln U.S. Growth Funds

What is the minimum investment?

The minimum initial investment amount for both the Lincoln U.S. Growth Fund and Lincoln U.S. Growth Fund Hedged is $5,000.

How often are distributions paid?

Distributions are paid annually, with the option to reinvest or receive cash directly in to your nominated bank account.

How is the performance fee calculated?

Lincoln U.S. Growth Fund Hedged: The performance fee is 20% p.a. of outperformance of the S&P 500 Accumulation Index (USD).

Lincoln U.S. Growth Fund: The performance fee is 20% p.a. of outperformance of the S&P 500 Accumulation Index converted to Australian Dollars.

Am I locked into my investment?

No, the Lincoln U.S. Growth Fund has no minimum investment timeframe and you will not be penalised if you decide to redeem your funds within a short period of time. But we suggest a minimum of 5 years to allow an adequate timeframe for the Fund to deliver on its long-term objectives.

What are the management fees for the Funds?

The U.S. Funds have a management fee of 1.00% per annum of the Net Asset Value of their respective Funds.

What is the difference between the Hedged and Unhedged Fund?

If you invest in the Unhedged fund, you are exposed to fluctuations in the Australian dollar. This can be a good thing if our dollar falls relative to the US dollar. For example, if you were invested in the Lincoln U.S. Growth Fund Unhedged and the value of the Australian dollar decreased relative to the US dollar, then the value of your portfolio would increase. Of course it can also work the other way around.

If you invest in the Hedged fund, we use strategies to offset the impact of currency fluctuations. This means if you invest in the Lincoln U.S. Growth Fund Hedged you are protected from the adverse impact of a rising Australian dollar. But equally, you don’t get to benefit from situations where the Australian dollar is falling.

If you have a strong view on where the Australian dollar is heading, you could favour one approach over the other.

Do Lincoln Indicators Analyse High Return Stocks in the U.S Stock Exchange Market?

Yes. We analyse the financial statements of companies on the U.S. stock exchanges and invest in the stocks that we perceive to have a strong growth pathway through our Lincoln U.S. Growth Funds. However, we do not currently cover U.S. Stocks on Stock Doctor.

Stock Doctor

What is Stock Doctor?

Stock Doctor is an all-encompassing share market membership. Through its online platform it delivers all the portfolio management, construction and optimisation tools to allow you to manage your investments like a true professional. Further, our education and unrivalled member support services ensures you are best placed to maximise your investing.

Do you cover every business on the Australian Stock Exchange (ASX)?

Yes. We analyse every company on the ASX using our proprietary quantitative methodology.  Only about 5% of stocks on the ASX meet our investment criteria. Our team of analysts then apply a final set of qualitative overlays to complete the assessment before recommending a company as either a Star Growth or Income Stock. We provide comprehensive analysis and regular updates on these companies.

Can I use Stock Doctor to help me construct and manage a share portfolio?

Absolutely. Stock Doctor includes a Portfolio Director feature that includes:

Portfolio Manager
Keeping you in total control with tax-aware, advanced performance reporting.

Portfolio Constructor
A tool which allows you to construct a portfolio based on your investment profile and objective.

Portfolio Optimiser
A tool that will help you manage your portfolio and keep you aligned to your investment objectives.

Does Stock Doctor generate tax reports?

Yes. Our Portfolio Manager provides tax reports, as well as performance reporting, saving you both time and fees.

Do you provide stock recommendations?

Our proprietary quantitative methodology analyses the financial health statements of every company on the ASX typically within 24 hours of results being released. This information helps us to quickly determine which businesses are healthy and worth considering for investment and which should be avoided. Only about 5% of stocks on the ASX meet our investment criteria. Our team of analysts then apply a final set of qualitative overlays to complete the assessment before classifying a company as either a Star Growth or Income Stock.
Lincoln may provide general financial product advice only, and you should consider your own objectives, financial situation and needs, before acting on it.

What support and education do you offer?

We have a commitment to comprehensive coaching and education. Our inhouse support team are available during standard Eastern time business hours via phone or in person meetings. You are also supported with a range of online education resources.

Can I see the performance of my portfolio against a benchmark?

Yes, this can be viewed in the Portfolio Manager.

Do you have international stock coverage?

Presently we do not. You may consider our US Growth Managed Fund.

Can I claim my Stock Doctor membership as a tax deduction?

You may be able to. You should refer this question to your tax accountant.

Are share prices in the Stock Doctor platform live or delayed?

We provide intraday data, which is 20 minutes delayed behind the ASX market.

Can I add other asset classes to my portfolio to track their performance?

Yes you can. The ‘Other Assets’ section of the Portfolio Manager allows you to add assets that are not ASX listed securities such as funds, property, hybrids, cash accounts. It also allows you to track the performance of your other investments compared to various ASX indices.

Does Stock Doctor allow me to perform technical analysis?

Yes. Stock Doctor has an advanced charting tool that is linked to both your Portfolio Manager and Watchlists. Perfect for those wanting to combine technical analysis with fundamental analysis. The tool allows you to use over 100 pre-set technical studies including MACD and Stochastics and 33 advanced drawing tools such as Gann fans and Fibonacci levels. With extensive end of day data on all ASX listed stocks, indices, commodities and currencies, you can easily analyse individual stock and market trends.

How can I scan the market for hidden gems?

Stock Doctor includes a powerful stock filter system that allows you to scour the market to find potential opportunities that suit your own personal needs.

Can I access Stock Doctor on my mobile device?

Yes. Stock Doctor is a web-based platform that is optimised to work on both mobile phones and tablets.

Who is best suited to use Stock Doctor?

Stock Doctor is designed to help the conscientious DIY investor who wants to take control of their investing outcomes, leveraging off our methodology that has delivered strong long-term returns as exemplified by our Star Stock performance.

Can Stock Doctor work with self-managed super funds (SMSF)?

Stock Doctor is the ideal investment tool for trustees of SMSFs because it gives you the facts you need to make informed investment decisions for your long term future. It allows you to control and manage your share portfolio by putting at your fingertips all the tools you need to proactively research, construct, and optimise that portfolio while helping you steer clear of unhealthy stocks that are more likely to fail. Depending on your circumstances, an SMSF can claim the cost of a service like Stock Doctor within the fund. Please seek appropriate advice to see if this applies to your SMSF.

Does Stock Doctor analyse every stock on the Australian Stock Exchange Market?

Yes. We carry out a thorough analysis of all the stocks on the Australian Stock Exchange market (ASX). After sieving through to get the best stocks, our team of experts then assesses the stocks to determine if they fall under the Star Income or Star Growth.

Does Stock Doctor provide stock recommendations?

We do not provide personal advice or recommendations based on your personal situation. We analyse financial statements and identify Star Stocks using our proprietary quantitative methodology based on either a growth objective, income objective, or both. Stock Doctor can help an investor determine which stocks are financially healthy and the ones to avoid. Lincoln may provide general advice only, and you should consider your own objectives, financial situation and needs before acting on it.

Can I use Stock Doctor to build my stock portfolio?

Yes. Some features come with subscribing to Stock Doctor, and one of them is being able to construct a portfolio based on your investment profile and objectives.

Portfolio Management software allows you to be in control through tax-aware and other advanced reporting systems. Also, it allows you to manage your portfolio in the way that best aligns with your investment objectives.

Who is best suited to use Stock Doctor?

Stock Doctor is best suited for the do-it-yourself investor who desires to run their investment independently while leveraging our approach, which has proven very efficient.

What is the cost of Lincoln Indicators’ stock portfolio management software?

Stock Doctor Membership fee for a year is $1,845. 2-year membership comes with a fee of $3,590 while 3-year goes for $5,335, with the 5-year plan priced at $8,825.

Why Stock Doctor for portfolio management?

Stock Doctor portfolio management software serves as a stock investment analysis tool for self-managed funds, stockbrokers or stock portfolio managers. Our stock investing tools are trusted by stock investors who want to make stock investments independently.

Our back-testing report for your stock investments provides you with the data, insights and timeframes on how your stock picks perform in different stock market conditions.

What are the features of the stock management portfolio software, Stock Doctor?

Stock Doctor stock investment analysis software offers investors a range of stock management tools and investment strategies that can benefit both experienced and novice investors. These include:

– Automation (Auto Manage) – ensures you don’t miss critical stock investment opportunities.

– Portfolio Manager – upload your stock portfolio data and instantly run stock investing reports.

– Strengths (focus) – identify stock market strengths of individual  Stock names, entire stock sectors or stock exchanges worldwide.

– Opportunities – Get exclusive access to quality Stock Doctor Star Stocks to increase capital growth or decrease risk exposure in stock exchanges

– Tax-aware stock investing – shows you how stock investments impact your tax position and the amount of tax owing

Who should use stock portfolio management software?

A stock portfolio management software is ideal for self-managed funds (SMSF) and forms a key component of SMSF stock investments or stock brokerage services with small or large stock investors.

What do I need to look out for when investing in high dividend stocks?

Investors need to be careful when investing in high dividend stocks because, while attractive, it could be a pointer that a company is performing poorly. It could appear implausible as it only makes sense that if a company is pushing out huge payouts, it means it’s making more. However, this isn’t always the case.

On a closer look, a company’s high dividend yield might be because its stock is suffering a significant drop in share price, indicating financial trouble that could affect its ability to make subsequent dividend payments. More so, most high dividend-paying stocks are susceptible to rising interest rates. So, it’s necessary to analyse its financial health and ability to pay consistent dividends before investing with them.

A company’s dividend yield is calculated by dividing the dividends it pays per stock by the stock price. Consequently, when an organisation earns more profit and pays higher dividends to its investors, the dividend rises with the stock price.

However, dividend yields could also rise when the share price falls while the dividend remains the same. It can be misleading for inexperienced investors as they might buy a stock that will not be beneficial in the long run. That is why an investor must carry out all due diligence before purchasing a high dividend stock.

Lincoln Indicators Australian Income Fund may provide investors with a high dividend yield over the long term. Learn more.

For those who prefer to manage independently, Lincoln Indicators’ Stock Doctor identifies financially healthy Income Stocks based on our proprietary methodology called Star Stocks and has the tools to help you manage your portfolio.

Should I invest in high dividend stocks?

While it might seem to make sense to invest in only the highest dividend stocks, experts know that these stocks must be financially healthy, quality businesses. Not all companies that pay a high dividend yield are quality companies that are stable in the long run. In fact, on occasion, the highest dividend shares can be some of the riskiest.

That may sound counterintuitive, but a closer look at the data explains this situation. A company’s dividend yield is calculated by dividing its dividend per share by the share price. When a company earns more and pays a higher dividend to shareholders, it rises relative to the share price. However, the dividend yield will also rise when the share price falls while the dividend remains the same. It is not good and can mislead inexperienced investors into poorly performing stocks with unsustainable dividends.

Lincoln Indicators’ Stock Doctor provides investors with a thorough analysis of each stock’s financial health and dividend stability.

How do I invest in high dividend stocks?

At times like this, when interest rates are historically low, the hunt for investment income becomes all the more critical. It is especially true for retirees who need a source of income to fund their living costs. Investing in high-yielding dividend-paying companies is a great way to ensure you have the income needed to support your lifestyle and reach your goals.

You can invest in either a self-managed stock research tool, Stock Doctor, or the investment experts with Lincoln Indicators Australian Income Fund. Ultimately, the investment pathway you choose depends on your personal preferences, time sensitivities, and investment goals. Both options have strong potential and could give investors great returns on their investment over time!

 

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All financial services are provided by Lincoln Indicators Pty Ltd ABN 23 006 715 573 (Lincoln) as the Corporate Authorised Representative of Lincoln Financial Group Pty Ltd ABN 70 609 751 966, AFSL 483167.