Star Stocks Investment Performance Disclosure
Star Stock returns (encompassing Star Growth, Borderline Star Growth and Star Income) calculated by Lincoln do not represent an actual investment portfolio. They reflect the performance of a notional investment portfolio based on Star Stock recommendations (purchases and sales) as they have been published in real time to our clients in the past. The criteria for selecting Star Stock has been revised and updated over time.
The performance over the stated time period/s reflects the capital return and dividend income paid on a notional portfolio that is equally invested in each Star Stock at the notional portfolio inception date, i.e.
- 01/09/1995 for the Star Growth Stocks notional portfolio
- 07/08/2012 for the Star Income Stocks and Borderline Star Growth Stocks notional portfolios
The performance assumes the notional portfolios are always 100% invested in equities (i.e. there is no cash balance). Each stock in the portfolio is rebalanced to equal weight when the composition of the notional portfolio changes. For example, purchases are funded by the sale of existing stocks in the portfolio, while cash from share sales are reinvested back into the remaining stocks to achieve an equal weight within the portfolio. Dividend distributions are reinvested in the specific investments on the underlying ex-entitlement dates.
Transactions are calculated at the volume-weighted average price (VWAP) for the next trading day. It is assumed there is sufficient market liquidity to make the required trades at this price and that stocks can be purchased at a fraction of a share (if necessary, to achieve equal weight). The performance figures include transaction costs of 0.5% on each purchase and sale. However, the calculation makes no allowance for government charges or tax, or annual subscription fees payable to Lincoln.
Please contact us if you would like further information about our calculation methodology or our Star Stock criteria, including how it has changed over time.
Star Stocks (like any equity investments) are volatile and go up and down. The past performance of the Star Stocks and our notional portfolio is not a reliable indicator of future performance and should not be relied upon.