Having helped DIY investors successfully invest in the Australian share market for over 30 years, we know the value of a well diversified portfolio.
Using the foundations of our quantitative financial health methodology, we spent two years optimising our trusted methodology for the U.S. market. Using a multi-factor model and our Financial Health overlay we have been able to identify a portfolio of financially healthy stocks that are ideal for long term growth.
The end result is our Lincoln U.S. Growth Funds, a Hedged and Unhedged Fund designed for Australian DIY investors who are looking to capitalise on long-term growth in the U.S. market.
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. The Fund team simplified its strategy during the period, returning to a long-only equity portfolio. As part of this shift, the Fund exited its remaining position in SPXU and reallocated the proceeds across existing holdings. 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.
Technology and small-cap stocks—key pillars of the recent bull market—have been among the hardest hit, which has had a more pronounced impact on the Lincoln U.S. Growth Fund, given its strong bias toward growth and innovation focused sectors. The correction in markets has come despite the quarterly reporting period being very strong for stocks in our portfolio. The earnings growth across many of our holdings remained impressive, reinforcing our conviction in the underlying fundamentals—particularly within the rapidly evolving Artificial Intelligence (AI) thematic, where capital investment continues at scale. The Fund team is selectively increasing concentration in the highest conviction holdings, focusing on businesses with standout fundamentals amid the market’s broader panic.
Looking forward, we anticipate continued volatility as the U.S. – China tariff dispute intensified in April. There is no doubt that the implementation of bilateral tariffs will create a huge amount of complexity and a whole lot of noise with regards to the underlying implication for domestic and global economic growth. While our base case is that rational policy will be the eventual outcome, our approach during the volatility will be to block out the hypothetical analysis and focus on the quality fundamentals of companies in our portfolio.
Our strategy remains grounded in fundamentals and embraces opportunities when high-quality companies become oversold. The Fund team is confident that the portfolio is well-positioned to capture this upside when sentiment inevitably swings back toward balance.
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.
| Investment Type |
Lincoln U.S. Growth Fund Unhedged Exposed to currency risk |
Lincoln U.S. Growth Fund Hedged Protected from adverse currency fluctuations |
|---|---|---|
| Minimum Suggested TF | 5 Years | 5 Years |
| Minimum Initial Investment | $5,000 | $5,000 |
| Minimum Additional Investment | $1,000 | $1,000 |
| Management Fee (p.a) | 1.0% | 1.0% |
| Performance Fee (p.a.) | 20% of outperformance of the benchmark | 20% of outperformance of the benchmark converted to AUD |
| Entry/exit Fees | nil | nil |
| Minimum Withdrawal | $1,000 | $1,000 |
| Minimum Balance | $5,000 | $5,000 |
| Buy/Sell Spread | 0.25% / 0.25% | 0.25% / 0.25% |
| Distribution Frequency | Annual | Annual |
| Date of inception | 1 July 2020 | 1 July 2020 |
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.
Distributions are paid annually, with the option to reinvest or receive cash directly in to your nominated bank account.
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.
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 Unhedged: The performance fee is 20% p.a. of outperformance of the S&P 500 Accumulation Index converted to Australian Dollars.
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.
