2011: A Year of Sub-par Returns

After fifteen years of top tier returns, the Global LAMP Index® lagged all three of its global comparators. During 2011 it lost 9.20% in value versus losses ranging from 3.18% to 5.53% on peer indices. Perhaps we were due. In the investment world nobody runs at the front of the pack all the time. For those wishing to see the scorecard, please view the Global LAMP Index® page.

LAMP’s larger than average loss was caused by the Index’s heavy weightings in European stocks, which sold down in reaction to the European Union’s sovereign debt crises. The domestic S&P 500 Index was stronger by comparison, which benefited indices with larger US equity exposure.

This single year result does not diminish the longer-term advantages of companies in the Global LAMP Index®, which remain at the forefront of a global corporate renaissance. As a group, these life-mimicking companies remain innovation leaders due to their inspiring cultures and prudent fiscal management. Consequently, we believe they will continue to gain market share from their more traditionally managed peers.

The ongoing renaissance is a reaction to the failures of industrial capitalism and traditional economic thinking. These themes run throughout this website, so there is no need to repeat them here. The economic turbulence caused by failing systems, of course, makes life more challenging for global LAMP companies. So too does the rise of new life-mimicking companies (such as Google), which didn’t make it into the original LAMP 60. Therefore, we can make no promises that past results for the Global LAMP Index® will be repeated in the future.