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.
By Tim Lincoln Managing Director and Chief Investment Officer
As of 6 May 2025
Our recent underperformance was a result of prioritising the protection of client funds during a period of extreme market dislocation. Markets moved sharply and unexpectedly, but we remained comfortable with our defensive stance. We are now well-positioned to work our way back toward outperformance by remaining true to our quantitative, data-driven methodology and our core belief in blocking out market noise and embracing volatility as an opportunity. The Fund completed its strategic repositioning during the March quarter, transitioning to being fully invested in Australian equities. This involved the exit of our remaining position in the equity hedge vehicle, BBOZ, and a progressive reduction of our corporate bond exposure over the period.
Equity markets entered 2025 on a positive note, with easing inflation and improving corporate earnings outlooks driving a strong rally in January. However, the Lincoln Australian Income Fund did not fully participate in this early momentum, as the portfolio was in the midst of its reallocation process throughout the month. While the Fund outperformed its benchmark over the latter part of the quarter during the selloff, its underperformance in January meant that overall quarterly returns were slightly behind the Index.
Looking forward, we expect market conditions to remain volatile as the U.S. – China tariff dispute intensified in April. While our baseline view is that a rational policy outcome will eventually prevail, we anticipate ongoing market noise and potential investor overreactions. In such an environment, we remain focused on fundamentals and see volatility as an opportunity to acquire high-quality, income-generating companies at attractive valuations.
The Fund delivered a healthy distribution annual yield of 7.12% as at 31/03/25 (inclusive of franking credits accrued) and we anticipate another strong income-producing period for the year ahead.
For more information, please contact our Fund Team on 1300 676 333.
All Lincoln Indicators Managed Funds are carefully structured to offer investors peace of mind regarding the security of their investments. While the value of investments can fluctuate, we focus on investing in financially stable companies with a low risk of failure. Additionally, we ensure that all client investments are held in a segregated trust with our trusted custodian, J.P. Morgan Chase Bank. As a further safeguard, we are regulated by the Australian Securities and Investments Commission (ASIC), and we adhere to stringent regulatory requirements that clearly define our operations and limitations
| Wholesale | Wholesale | Retail |
|---|---|---|
| Entry | 0.8952 | 0.8521 |
| Exit | 0.8890 | 0.8461 |
| Date | 01 May 20 | 01 May 20 |
| 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 |
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.
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.
Distributions are paid quarterly, with the option to reinvest or receive cash directly in to your nominated bank account.
Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Lincoln Australian Growth Fund, Lincoln Australian Income Fund, Lincoln U.S. Growth Funds (“the Fund”). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).
This website has been prepared by Lincoln Indicators to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither Lincoln Indicators, Equity Trustees nor any of its related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.
Lincoln’s Fund’s Target Market Determination is available here. A Target Market Determination is a document which is required to be made available from 5 October 2021. It describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed.
To discuss the future of your investments in detail, book in a free consultation with a Lincoln representative.
To discuss the future of your investments in detail, book in a free consultation with a Lincoln financial expert.
