Lincoln Australian Income Fund

Invest in the numbers for income

For a medium to a long-term income stream

Introducing the Lincoln Australian Income Fund

with Tim Lincoln, Co-Founder and
Chief Investment Officer
Video duration: 1m 45s

Seeking consistent, high dividend yield for investors

Investing for income requires both the company and the dividends to be strong and sustainable. This will allow you to generate a consistent and dependable income stream over the long-term. Since launching in 2012, our Lincoln Australian Income Fund has been applying our quantitative methodology to invest in a portfolio of Stock Doctor Star Income Stocks, an elite group of ASX companies prized for their Financial Health, high quality and exceptional yield. The fund aims to provide income above the market average which is a positive outcome for retirees and SMSFs in preservation phase.

Current strategic insights

Tim Lincoln

By Tim Lincoln Managing Director and Chief Investment Officer
As at 31 Jan 2024

The Lincoln Australian Income Fund has employed a tactical position aimed to reduce portfolio volatility for our high yield approach. Our defensive strategy has included redeploying capital down the risk curve by investing 30% of the portfolio in floating and fixed corporate bonds whilst reducing our equity market volatility by introducing a hedge in the form of the Beta Shares Australian Bear ETF (BBOZ).

Many of our clients that know me personally, are surprised with my bearish view and the tactical portfolio positioning, as I am usually 100% invested and block out the noise. But this time, I truly believe the market has not priced in the lag effect that a higher interest rate environment will have on company earnings and the subsequent ramifications that could follow for markets. We are taking risk out of the portfolio by moving capital down the risk curve into corporate bonds whilst protecting our equity exposure with hedging instruments. What our investors can expect is significantly reduced volatility in unit prices, but importantly consistent income generation and distribution payments.

The extraordinary rally in equity markets that has transpired to end 2023 has had an impact on our relative returns to the ASX 200 Accumulation Index. The Fund team are prepared to endure the short-term underperformance relative to market because we have high conviction that capital preservation tactics, whilst maintaining an attractive yield profile, is the most prudent strategy to employ for our investors in a highly uncertain economic environment.

For more information, please contact our Fund Team directly on 1300 676 333.

  • Excluding franking
  • Including franking

Yield per annum since inception (excluding franking credits)

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(a) 02/04/2012 is the inception date of both the Wholesale and Retail Income Funds.
(b) Distribution Yield represents the difference between the Fund’s total return (excluding franking credits) and the Fund’s capital return. The difference between the two returns is attributed to distributable income (dividends, interest and net realised gains). The Fund’s total return calculation methodology is defined in footnote (e). The fund’s capital return represents the change in the unit prices over the measurement period.
(c) S&P/ASX 200 Accumulation index. Source: Standard and Poors
(d) MSCI World Gross Index USD. Source: MSCI.
(e) Performance quoted is historical actual performance. Investments go up and down. Past performance is not a reliable indicator of future performance. Total Fund return is inclusive of income paid and payable from the Fund to unit holders, in addition to the difference in exit prices for the relevant periods net of management fees, ongoing fees and expenses, and assumes distributions are reinvested and that no tax is deducted.

Yield per annum since inception (including franking credits)

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(a) 02/04/2012 is the inception date of both the Wholesale and Retail Income Funds.
(b) Distribution Yield represents the difference between the Fund’s total return (including franking credits) and the Fund’s capital return. The difference between the two returns is attributed to distributable income (dividends, interest and net realised gains). The Fund’s total return calculation methodology is defined in footnote (e). The fund’s capital return represents the change in the unit prices over the measurement period.
(c) S&P/ASX 200 Accumulation index inclusive of franking credits. Source: Macquarie Equities.
(e) Performance quoted is historical actual performance. Investments go up and down. Past performance is not a reliable indicator of future performance. Total Fund return is inclusive of income paid and payable from the Fund to unit holders, in addition to the difference in exit prices for the relevant periods net of management fees, ongoing fees and expenses, and assumes distributions and franking credits are reinvested and that no tax is deducted.

Actively managed, accessible, transparent

  • May be suitable for retirees in preservation phase and SMSFs
  • Quarterly income distributions
  • Actively managed using our quantitive methodology
  • Your funds held securely in a trust
  • Competitive management fees
  • 24/7 online account access
  • Regular investor events
  • Direct access to the investment research team
  • Dedicated investor liaison
“The management team and staff at Lincoln Indicators are the most client focused and professional group I have experienced.”
David King, Stock Doctor member since 2004#

Maximum security for peace of mind

All Lincoln Indicators Managed Funds are established to provide investors with maximum peace of mind about the security of their investments. Not only do we invest in financially healthy companies that have a low risk of failure, but we also hold all client investments in a segregated trust with our custodian J.P. Morgan Chase Bank. Furthermore we are regulated by the Australian Securities and Investment Commission (ASIC) in Australia with strict regulatory requirements which govern exactly what we can and can’t do.

Key information

Investment Type Wholesale Retail
Minimum suggested timeframe 5 years 5 years
Minimum initial investment $250,000 $5,000
Minimum additional investment $5,000 $1,000
Management fee (p.a) 0.95% 1.75%
Entry/exit fees Nil Nil
Minimum withdrawal $1,000 $1,000
Minimum balance $250,000 $5,000
Minimum savings plan contribution (optional) $250 per month $250 per month
Buy/sell spread 0.25% / 0.25% 0.25% / 0.25%
Distribution frequency Quarterly Quarterly
Commencement date 2 April 2012 2 April 2012

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FAQs

Here are some of our most frequently asked questions.
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.

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.

How often are distributions paid?

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

Begin your investment journey.

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Copyright © 2024 Lincoln Indicators Pty Ltd. All rights reserved.

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.

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