VGI Partners VG1.ASX – Investor Letter – Year to December 2022
Dear Fellow Investors
For the twelve months ended 31 December 2022 (CY22), VGI Partners Global Investments Limited (ASX:VG1) generated a net return of -22.3%.
Global equity markets experienced a challenging year in 2022, the S&P 500 declining -19% over the period, the NASDAQ Composite retreating -33% and the broader MSCI World Index falling -19%. Few asset classes delivered a positive return for the year, as heightened inflationary pressures, rising global interest rates and a horrific conflict on the European continent saw over US$25 trillion in value erased from global equity markets over the course of the calendar year.
CY22 has been incredibly disappointing for VGI Partners. Since the inception of VG1’s portfolio in 2017, we have strived to provide our investors with access to a concentrated portfolio of high-quality businesses, with the ambition to grow our capital at 10-15% per annum. The careful protection of our invested capital base and constant vigilance in avoiding situations that lead to the permanent impairment of capital has been a critical component to this approach. Quite simply, we have not adequately executed on this in 2022.
