Lincoln Australian Share Fund

Fund overview

The Lincoln Australian Share Fund¹ (the ‘Fund’) is suited for medium to long term investors who are primarily seeking capital growth. The Fund invests in ASX listed companies that are financially healthy, well managed, undervalued and of sufficient market cap size. The Fund’s objective is to outperform the S&P/ASX 300 Accumulation Index benchmark.

Performance to 30 November 2008

¹S&P/ASX 300 Accumulation Index
²Inception dates: wholesale fund – 11 January 2005, retail fund – 1 June 2007

Month in review

November saw the Australian sharemarket have another disappointing month with the S&P/ASX 300 Accumulation Index decreasing by 6.30%. After a solid start to the month in the run up to the US election the sharemarket resumed its decline on downbeat economic news. A very weak jobs report in the United States with 240,000 jobs lost in October, coupled with downward revisions for the previous two months, contributed to the negative sentiment. Also in the US, very weak retail sales figures coupled with concerns over the viability of the big three automakers also added to the negative sentiment. On a positive note official interest rates in Australia were cut by 75 basis points to 5.25% with a large cut expected in December.

The Fund slightly outperformed the market this month decreasing by 6.08%. Despite a disappointing September and October the Fund continues to outperform the market on a long term basis; 2 years (+5.56% p.a.), 3 years (+4.04% p.a.) and since inception (+1.72% p.a.). In addition to the favourable long term results, the Fund is still positioned in the top quartile among Australian Large Cap Growth Fund
Managers².

The two weakest performing sectors this month were Information Technology (-17.64%) and Consumer Discretionary (-13.90%), with an overweight position in these two sectors detracting from Fund performance in November. The two best performing sectors for the month were Listed Property (+7.75%) and Utilities
(-1.73%). An underweight position in Telecommunications and Utilities detracted from the Fund’s performance.

Stocks that managed to deliver solid performances this month within the portfolio included Newcrest Mining Limited (+18.03%), Lihir Gold Limited (+12.82%) and BHP Billiton Limited (+10.75%). Newcrest Mining and Lihir Gold rallied following an increase in the price of gold while BHP Billiton rallied following the company’s decision to abandon its bid for Rio Tinto.

Among the worst performing stocks in the portfolio for November were Fleetwood Corporation (-33.28%), Incitec Pivot Limited (-26.63%) and Centennial Coal Limited (-25.43%). Fleetwood Corporation declined on concerns over slowing mining activity, Incitec Pivot Limited declined following the company raising capital via a rights issue, while Centennial Coal declined following a fall in thermal coal prices and downward sentiment towards the coal sector.

Distribution details

For the half year ended 30 June 2008, the total distribution paid to wholesale investors was 5.038 cents per unit; Retail investors were paid a total distribution of 3.679 cents per unit. These distributions were net of fees.

Key data

Asset allocation

Top 10 portfolio holdings

Sector allocation
(LASF %) (S&P/ASX 300 Accum Index %)

Performance to 30 November 2008

¹S&P/ASX 300 Accumulation Index
²Inception dates: wholesale fund - 11 January 2005, retail fund - 1 June 2007

A PDF version of this document is available for printing purposes: November Review PDF (120Kb) For the Lincoln Australian Share Fund home page: Click here

¹ The Underlying investment portfolio for the Lincoln Wholesale and Retail Australian Share Funds. All figures referred to in the market commentary relate to the wholesale class of units.

² To view the Morningstar list please visit www.morningstar.com.au, follow the Fund QuickRank link, search for All Fund Managers in the Australian Large Growth Category, then rank the funds by Performance - Total Return over the 3 year period.

Important information. This information is issued by Lincoln Indicators Pty Ltd.

Investment Manager: Lincoln Indicators Pty Ltd (Lincoln) ACN 006 715 573, AFSL 237740. Responsible Entity of the Fund: Equity Trustees Limited ABN 46 004 031 298, AFSL 240975. All figures, information and illustrations are as at 30 November 2008 unless stated otherwise. Portfolio holdings and sector allocations are subject to change without notice. This communication contains general information only. It has been prepared without taking into account the objectives, financial situation or needs of any individual investor. As a result, you should consider its appropriateness in regard to your particular objectives, financial situation and needs. You should also consider obtaining your own independent advice before making any financial decisions. It should be read in conjunction with the Product Disclosure Statement (PDS) of the Lincoln Australian Share Fund; which can be obtained by contacting Lincoln on 1300 676 332, or via our website www.lincolnindicators.com.au. You should read and consider the PDS before making any decision about whether to acquire or continue to hold the product. Applications to aquire units can only be made on an Application Form attached to a current PDS. Lincoln its employees and/or associates may hold interests in companies listed in this communication. This position may change at any time without notice.

Investments go up and down. Past performance is not a reliable indicator of future performance. Lincoln, as Investment Manager, will be remunerated based on funds invested. You should read and consider our Financial Services Guide, available by contacting Lincoln on 1300 676 332 or via our website www.lincolnindicators.com.au, which sets out key information about the services we provide. Neither Lincoln, Equity Trustees Limited, or their directors, employees or agents provide any guarantee, representation or warranty as to the reliability, accuracy or completeness of the information in this document; and do not accept any responsibility or liability arising in any way (including by reason of negligence) for errors in, or omissions from, this document. This disclaimer does not purport to exclude any warranties implied by law which may not be lawfully excluded. Neither Lincoln, Equity Trustees Limited, or their directors, employees or agents guarantees the performance of, or the repayment of capital or income invested in the Fund.