Two people sitting at a table, one wearing a business shirt with hands clasped, the other offering a hand towards them.Two people sitting at a table, one wearing a business shirt with hands clasped, the other offering a hand towards them.

The objective of the Global Equity Fund is to deliver net returns, before tax, that are at least 2% pa above those of the MSCI All Country World Index.

In the five years to March 2022 that MSCI index returned an average of 11.8% pa in New Zealand dollars, so our objective was to have delivered at least 13.8% pa.

Liquidity

The Fund invests in companies listed on the major United States stock exchanges. We invest there because they are bigger markets that offer more liquidity, and because the very best companies from all around the world will seek listings on these exchanges.

Growth

We are stock pickers, not index huggers. We look for companies that are highly profitable, that have delivered strong growth in the past, and that we believe will continue to grow strongly for at least three to five more years.

Patience

We are patient “buy and hold” investors, not traders. We are prepared to stay invested in a company for several years, riding out any short-term volatility along the way, while the company delivers on its opportunities.

Conviction and caution

Sometimes, but not always, we will also invest in options for companies that we strongly believe in. Equally, sometimes, when we think conditions merit it, we will move a good portion of the Fund’s assets to cash.

Learn more about our investment philosophy

We have been running this Fund since 20161, although it’s only now available as a PIE, so we have a proven track record of returns.

There are no guarantees that our future returns will be the same as our historical ones – market conditions change, our investment style might be more or less effective in the future, and so on. But we continue to base our investment choices on factors we believe are linked to higher returns and that have delivered strong returns in the past.

Learn more about our recent returns

Net returns, after tax2

Using a PIR tax rate of0%10.5%17.5%28%
Equivalent to an after tax Compound Annual Growth Rate of % p.a.

Companies have financial objectives, but they also have social, ethical and environmental responsibilities.

The Fund will not invest in companies that develop, manufacture or sell munitions firearms, alcohol, tobacco, cannabis, palm oil or fossil fuels, or companies that are involved in whaling, gambling or pornography3.

We are signatories to the UN Principles of Responsible Investing and we consider environmental, social, governance and other factors in the Fund’s investment decisions alongside the financial factors.

Signatory of Principles for Responsible Investment

Every investment comes with an element of risk.

We recommend you talk to a financial advisor to work out your own appetite and tolerance for risk, but you can also use the simple calculator at www.sorted.org.nz/tools/investor-kickstarter.

In New Zealand managed funds have to display a Risk Indicator, which is calculated from the month-to-month volatility of the fund’s returns.

The Risk Indicator is rated from 1 (low) to 7 (high), and the Risk Indicator for this fund is:

  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7

The Risk indicator is a simple guide, but risk has more important dimensions than month-to-month volatility.

For investors risk is really about the possibility of losses. Managing risk is about minimising the occurrence, the duration, and the depth of any losing periods.

Learn more about how we think about risk

Key facts

Fund nameLighthouse Global Equity Fund
ObjectiveTo deliver long-run returns (after fees and expenses, but before tax) that are at least 2% pa above the return of the MSCI All Country World Index.
Target investment mix98% global equities and 2% cash
Minimum suggested investment timeframe5 years
Annual fund charges1.05% per annum, including GST
Hurdle rate of returnThe MSCI All Country World Index, net, in New Zealand dollars, plus 2%p.a.
Performance based fee30% of the fund’s returns, after the annual fund charges, that is above the hurdle rate of return. Subject to exceeding a perpetual high water mark.
Indicative buy/sell spread0.10%/0.10%
  1. From April 2016 to March 2021 this fund was only available for wholesale investors, but from March 2021 it’s open to all investors via a unit trust PIE.↩
  2. The Fund performance figures shown here don’t include any entry or exit fees, or any brokerage you might have to pay. There can be no guarantees that future returns will be the same as the historical performance, and we can’t promise or guarantee any specific level of future returns.↩
  3. The Fund may occasionally invest in exchange-traded funds that track an index. When that happens we will make best efforts to select funds that respect our responsible investing standards while also providing the liquidity, reliability and transparency we require.↩