Why us

About us

Key points

  • We expect investors will choose us because of our track record of investment returns
  • The last five years have been rosy, but we expect the long-run average will be about 3% pa lower than across these last five years
  • Patient investors with longer time horizons will benefit from those higher returns compounding

We expect the main reason why an investor would choose to invest in the Lighthouse Global Equity Fund is our track record of investment returns.  

We expect to deliver above-market returns and historically the Fund has delivered about 1.75x the returns of the major indexes.  Across the five years from 31 March 2016 to 31 March 2021 the Fund’s average return, after fees and investor taxes, has been:

5-year compound average return23.3% pa22.0% pa21.0% pa19.6% pa

We think these returns are probably a slight overstatement of the Fund’s long-term performance.  This fund has evolved out of our own personal investing, and from that we can derive performance figures back as far as 2010.  The average return across that eleven year period is a little lower than the five year averages shown here (22.0% pa vs the 23.3% pa shown here for the 0% PIR, so about 1% pa to 1.5% pa lower).  But we should allow for the occasional market crash (such as 2001 and 2008) and that would likely trim a further 1.5% pa off these average returns.  

Of course we need to add the standard disclaimer that past performance is no guarantee of future performance – that’s true, and fair.  But we expect that the features we look for in the companies the Fund invests in should be enduring into the future.

Where that strong performance helps investors the most is across the medium to long term.  We recommend investors in the Fund have at least a five year investment horizon – that allows both the investor to better navigate the year-to-year volatility in returns, and for the performance to compound over time.  If we consider how a $10,000 investment might grow in five years and in ten years, at a range of different average post-tax returns we see:

Average post-tax returnFor exampleOver 5 years $10,000 becomes…Over 10 years $10,000 becomes…
2% paThe average return from 6 month term deposits, from 2016 to 2021$11,050$12,200
12% paThe average return from the NZ50, directly held, from 2016 to 2021$17,600$31,050
14.5% paThe average return of this Fund’s performance fee hurdle, from 2016 to 2021$19,700$38,750
20% paThe Fund’s average return, from 2016 to 2021$24,900$61,900

We’re focused on helping our investors reach their financial goals faster, and we see these strong investment returns as how we deliver on that objective.

Note: The content provided here is written by us, Lighthouse Funds, as general information that we trust is helpful and informative. It’s based on information that we believe to be accurate and reliable, although we can’t guarantee that this is the case. It isn’t intended to be personalised advice for any investor, or class advice for any group of investors. We recommend that before entering into any investment you first seek advice from a financial advisor who can give you professional advice that takes into account your objectives, needs, financial situation and circumstances. Please see our disclaimer.