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:
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:
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.