Global founders fund

Invest in founder-led companies creating new products and services with proven growth.
Outperform the global stock market over the long-term.
(Long-term, by our definition, is more than one market cycle)
Global listed equities, long-only, unhedged.
Recommended horizon
Minimum of one market cycle. Setting our sights on the long-term is how we identify opportunities in the face of short-term market whims.
Volatility & return target
Volatility diminishes the longer the holding period. The metrics below reflect our volatility-return target as measured over the long-term:

Volatility: Medium
Return: High

strategy & process


Invest in founder-led companies whose new products and services continue growing market share over the next decade.

We aim to simultaneously employ all of the following strategies, depending on market conditions:

  1. Market creators – invest in founder-led companies who are first movers in the creation of a new product or service. These products and services must have proven revenue growth and enduring use cases well into the future.
  2. Capital recycling – buy into founder-led companies whose valuation multiples are low relative to their history. We recycle capital by exiting once they reach fair value and reinvest into fresh opportunities that become available.


  1. Start with the unconstrained global universe – all listed stocks in the world
    (~40,000 stocks)
  2. Quant filter – based on revenue growth, margins, returns on capital, operational gearing, debt and founder involvement
    (~500 stocks)
  3. Qualitative filter – based on founder behaviour, motivations of senior executives, brand reputation, and product quality
    (~50 stocks)
  4. Valuation, monitor and track – monitor and wait; buy only when the price is within our valuation range
    (10-20 holdings)
  5. Recycle – if valuations reach excessive levels no longer commensurate with expected growth, recycle capital into new opportunities

Fund details

Wholesale, open-ended unit trust
Minimum investment
AUD $100,000
Daily, processed via investor portal
10 to 20 global stocks
Paid annually, ex-distribution date 30 June, paid in July each year
Investor reporting
Monthly - individual investor returns updated via investor portal;
Quarterly - performance update and fact sheet;
Biannual - investment strategy letter;
Annual - transaction, performance and tax statement.
7 July 2017
Reference codes
Bloomberg ticker: LUMGBFD:AU

Morningstar code: 43766 Lumenary Global Founders Fund

Fee structure

Ongoing fees

1.20% p.a. of net asset value

Performance fees

Our performance fee is unique and incentivises genuine long-term outperformance. Performance fees are a function of returns generated. Returns for each investor are:

  • individually tracked; and
  • measured from the entry date into the fund; there is no reset – excess return needs to be generated over the entire duration of an investment, not just a single year. For example, after the first year of investment, the individual return for each investor is compared to the benchmark over the first year. The following year, the return comparison will span over 2 years. After 10 years, individual investor returns will be compared with the benchmark over 10 years. This fee structure incentivises genuine performance over the long-term, is a higher bar to achieve, but is exactly how we would want our own money to be managed.

Performance fee equates to 16.5% of the excess return generated above the benchmark and applies only if the return:

  1. exceeds the benchmark over the entire duration of the investment; and
  2. exceeds the high water mark; and
  3. is positive.

Performance fee is calculated every 30 June and when you exit the Fund.


MSCI All Country World Net Index (in AUD)

Investor portal

Track returns, transactions and access annual tax statements via our investor portal, updated monthly