Record low-interest rates and unprecedented fiscal stimulus have supported the Australian and global post-COVID economic recovery and delivered better-than-expected company earnings. Yet many investors continue to chase cyclical stocks with poor Financial Health in sectors most heavily disrupted by the pandemic in preference to quality.
This has impacted the short-term performance of the Lincoln Australian Growth Fund as we avoid poor quality, financially unhealthy businesses. While many quality growth stocks have reported better than expected earnings, the carryover to share price gains is still to take place.
The short-term performance of the Lincoln Australian Income Fund has also been impacted but has benefited from exposure to cyclical sectors such as banks and mining, while a recovery in dividend stocks is expected to support distributions going forward. The value rotation also continues to impact overseas markets, with the Lincoln U.S. Growth Funds underperforming their benchmark.
In our Quarterly Fund Investor Update webinar Tim Lincoln, Co-Founder and Chief Investment Officer, Matthew Swartz, Portfolio Manager, and Kien Trinh, Head of Research, discuss our Fund’s performance and how we’ve adapted our portfolios to the current environment, whilst not compromising our commitment to Financial Health.
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.