Lincoln Wholesale Australian Income (ETL0324AU) Report & Performance

What is the Lincoln Wholesale Australian Income fund?

Lincoln Australian Income Fund aims to provide its investors with: income above the yield of the benchmark; some capital growth; and lower volatility than the benchmark over the medium to long term.

  • The Fund invests in a range of securities, predominately listed on the ASX. These securities include: Australian equities , Hybrid securities, and Corporate bonds.
  • Suitable for investors with an investment horizon of at least five (5) years and comfortable with periods of high volatility.
  • Uses unique investment methodology to target financially healthy companies that have sustainable and predictable earnings with strong cash flows.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Lincoln Wholesale Australian Income

Lincoln Wholesale Australian Income Fund Commentary December 31, 2021

Performance contributors this month included:

Nick Scali Ltd (NCK) – The stock price finished the period up 38.2% after announcing in October the acquisition of Plush-Think Sofas for $103m (funded by cash and debt). The deal finalises in 2Q22 and will be earnings accretive, so there will likely be positive revisions to consensus earnings estimates for FY22. The company reported well with its FY21 performance ahead of expectations, indicative of a recovering consumer sector benefiting from the economy reopening and renewed confidence in household spending.

Fortescue Metals Group Ltd (FMG) – FMG (+31.94%) reported 1Q22 iron ore shipment volumes that were 3% higher compared to the prior quarter and in line with market expectations. The average realised price for iron ore over the quarter was $118/dry metric tonne, which enabled the company to generate strong cash flow to fund dividends and support its Strong Financial Health rating (GR1).

Jumbo Interactive (JIN) – JIN was another example of the strong consumer theme finishing the period up 20.3%. The company’s strength is supported by robust cash generation and not debt on the balance sheet. Revenue expanded by 17% despite fewer high-value jackpots. Completion of the Stride acquisition, along with the potential to win the entire Lotterywest digital offering, we feel the consensus FY22 EPS growth rate of ~15% is achievable.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Lincoln Wholesale Australian IncomeETL0324AUManaged FundsDomestic EquityAustralia OtherDomestic Equity - Other IndexASX Index 200 Index394.76 M0.95%0.00%0.7%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Lincoln Wholesale Australian Income-1.45%-3.65%1.95%0.84%6.26%4.62%12.96%12.43%-3.65%-18.61%-22.71%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Lincoln Wholesale Australian IncomeDomestic Equity - Other Index-6.69%-1.27%NA%NA%NA%0.385.9%4.45%0.550.95

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Lincoln Wholesale Australian IncomeYes-https://www.lincolnindicators.com.au/-

Product Due Diligence

What is Lincoln Wholesale Australian Income

Lincoln Wholesale Australian Income is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Other Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Lincoln Wholesale Australian Income has Assets Under Management of 394.76 M with a management fee of 0.95%, a performance fee of 0.00% and a buy/sell spread fee of 0.7%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Lincoln Wholesale Australian Income has returned -1.45% in the last month. The previous three years have returned 0.84% annualised and 12.43% each year since inception, which is when the Lincoln Wholesale Australian Income first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Lincoln Wholesale Australian Income first started, the Sharpe ratio is NA with an annualised volatility of 12.43%. The maximum drawdown of the investment product in the last 12 months is -3.65% and -22.71% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Lincoln Wholesale Australian Income has a 12-month excess return when compared to the Domestic Equity - Other Index of -6.69% and -1.27% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Lincoln Wholesale Australian Income has produced Alpha over the Domestic Equity - Other Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Domestic Equity - Other Index category, you can click here for the Peer Investment Report.

What level of diversification will Lincoln Wholesale Australian Income provide?

Lincoln Wholesale Australian Income has a correlation coefficient of 0.95 and a beta of 0.38 when compared to the Domestic Equity - Other Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Lincoln Wholesale Australian Income and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Lincoln Wholesale Australian Income with the ASX Index 200 Index?

For a full quantitative report on Lincoln Wholesale Australian Income compared to the ASX Index 200 Index, you can click here.

Can I sort and compare the Lincoln Wholesale Australian Income to do my own analysis?

To sort and compare the Lincoln Wholesale Australian Income financial metrics, please refer to the table above.

Has the Lincoln Wholesale Australian Income been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Lincoln Wholesale Australian Income?

If you or your self managed super fund would like to invest in the Lincoln Wholesale Australian Income please contact via phone or via email .

How do I get in contact with the Lincoln Wholesale Australian Income?

If you would like to get in contact with the Lincoln Wholesale Australian Income manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Lincoln Wholesale Australian Income. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - September 30, 2021

Performance contributors this month included:

AusNet Services Ltd (AST) – During September, AST received two acquisition bids and finished the period up 44%. Global asset manager Brookfield bid $2.50 (cash) per share, and APA Group (APA) followed shortly afterwards with a bid for $2.60 (cash and script). With the AST Board granting Brookfield exclusive 7 week access for due diligence, APA has to wait for the end of this period, or a favourable ruling from the Takeovers Panel, before undertaking its own due diligence.

Pinnacle Investment Management (PNI) – The company reported well and was strong throughout the period finishing up 32.6%. Net profit margins surged to 68% from 55%, which drove EPS growth of 103% and bolstered ROE to 31% from 18%. From an income perspective, dividends grew by 86% to 28.7cps on a 79% payout ratio.

Carsales.com Ltd (CAR) – The stock rallied 29.35% over the quarter and is currently trading close to all-time highs. On September 1, int announced the completion of its 49% stake in Interactive Brokers (announced back in May), funded by a $600m capital raise. It had a dilutionary impact on the most recent result, with ROE falling from 34% to 24%.

Performance Commentary - April 30, 2021

Accent Group (AX1) – Was the best performing stock in the portfolio, closing the month +30.67% higher. The strength in price was partly due to another solid month for Australian retail sales, but predominately related to the company’s announcement that it had agreed to acquire youth apparel retailer Glue Store for $13m. The consideration would be funded out of existing cash facilities and, in time, will be an accretive investment. Monadelphous (MND) – Following a few months of underperformance, Monadelphous (MND) experienced a shift in investor confidence, rallying +22.6% for the month. The Fund Team believes the strong month was a related to growing confidence that the capex cycle for metals mining/ oil gas will continue in the face of soaring commodity prices and analyst upgrades. On top of this, the company announced that it had settled a lawsuit filed by Rio Tinto relating to a fire incident at their iron ore facility in 2019. The lawsuit was in part acting as somewhat of a headwind for investor sentiment.

Adairs Limited (ADH) – Was another retailer buoyed by the continued strong consumer spending environment. Retailers such as Adairs, who invested in a strong omni-channel strategy have benefited enormously from the growth in online spending. On top of that Adairs are well placed to benefit from the housing market recovery

Performance Commentary - February 28, 2021

Performance contributors this month included:

RIO Ltd (RIO) – A beneficiary of the cyclical rotation driven by a global economy recovering from COVID and elevated iron ore prices, reported a strong result in February. A US$3.09 per share ordinary dividend and US$0.93 special dividend were declared for the second half, for a full year payout of US$5.57. This represented a solid 72% payout ratio, higher than the 40–60% policy. BHP Ltd – The company reported well on 17 February and closed the month +12.8%. 1H21 profitability was ahead on 1H20 due to record iron ore prices and a strong recovery in copper. The company’s willingness to pay out all the free cash flow in a fully franked US$1.01 dividend was important because, with of Net Debt marginally below their target range, management is taking the view that the global economy is on the mend and iron ore prices will support strong cashflows through the current half.

Service Stream Ltd (SSM) – (-39.6%) reported late in the month and management indicated 2H21 earnings to be in-line with its already lowered expectation due to ongoing COVID disruptions. From an income perspective, a 1H21 dividend of 2.5cps was announced (vs 4.0cps in 1H20 and below expectations). This means that forward dividend estimates are likely to decrease in-line with lower earnings expectations (from ~8.8cps to ~5cps). Although a disappointing outcome, the Fund Team sees little near term risk for further downside and as such has decided to retain the position in the portfolio until the dividend in March.

Performance Commentary - December 31, 2020

The Lincoln Australian Income Fund closed the year 5.42% higher, outperforming its benchmark index by 3.1%. Over the month, the Fund rose 0.78% which represented a small underperformance of its benchmark by 0.5%. The materials sector played an important role in the market over the month and did a lot of the heavy lifting.

Performance Commentary - November 30, 2020

Performance contributors this month: Accent Group Ltd (AX1) – (+30.7%) Was the strongest performing stock in the Fund for the month after a trading update reported a continuation of strong sales in the first 20 weeks of FY21. Digital sales were strong as were like for like sales despite the impact of lockdowns on the Victorian stores.

Nanosonics Ltd (NAN) – (+29.3) Continued October’s strength retracing roughly five months of losses. Positives come from a recent 1Q21 trading update reporting the company’s sale of Trophon units, Consumables revenues, and an improvement in hospital access underscoring an operational recovery.

Growth to Value Rotation – Adairs Ltd (ADH), Rhipe Ltd (RHP) and Dominos Pizza (DMP) fell -16%, -12.6% and -11.2% respectably getting caught in the movement away from pandemic beneficiaries into cyclical stocks and previous underperformers. Gold (XAUAUD) – Gold was down 9.35% in AUD terms as money shifted from risk off assets to risk on asse

Performance Commentary - October 31, 2020

The Lincoln Australian Income Fund (Fund) rose by 0.81% during October, underperforming its benchmark by 1.13%. ResMed Inc produced a quarterly result that was well ahead of analyst expectations as the company benefitted from surging ventilator sales and solid cost controls. Adairs Ltd was also up strongly, providing the market with another robust trading update with total sales up 22%. The lift in revenues was driven by online sales which skyrocketed 134%. The Fund continues to outperform its index over 1 year, 3 years and since inception and is amongst the best performing funds in its category according to Money Management’s^^ list of high yield Australian equity funds.

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