Global Masters (GFL) was created for investors seeking to participate in long term capital growth by investing in quality global assets. Global Masters has two major investments with its primary investment in the New York Stock Exchange listed investment company, Berkshire Hathaway Inc. Its other offshore investment is in the London Stock Exchange listed Athelney Trust. Notwithstanding the excellent past performance of these two investments, Global Masters believes Berkshire Hathaway and Athelney have the potential to continue to enjoy outstanding investment returns into the future.
The primary source of value creation for Global Masters Shareholders is the capital appreciation of their shares since Berkshire Hathaway does not pay a dividend and any excess cash received by the Company after paying expenses is reinvested.
The Board takes the view that Global Masters' international investments provide currency diversification to investors and therefore the Australia dollar/ US dollar currency exposure is not hedged. The resultant portfolio performance is monitored by GFL’s Board of Directors.
Global Masters Fund (GFL) was incorporated in New South Wales in May 2004 and was listed in December 2005. While GFL is a separate Company it is an integral and important part of the overall investment strategy of the EC Pohl & Co group of companies to provide the group with exposure to the US and UK markets.
The EC Pohl & Co group of companies have indicated that they intend to retain at least a 51% interest in the Company at all times thereby ensuring a long-term association with the group.
Creating Shareholder wealth through strategic investments in listed international companies.
Global Masters' primary investment is in the New York Stock Exchange listed investment company, Berkshire Hathaway Inc. which is managed by the legendary Warren Buffett and domiciled in Omaha, Nebraska ( USA). Berkshire Hathaway's investment approach has traditionally followed the strict discipline of investing only in businesses with superior economic characteristics that are controlled by successful and skilled managers. Their investments comprise a diverse range of activities with the principal business being insurance, mainly through GEICO (motor) and General Re. Berkshire Hathaway also has substantial equity holdings in other large international companies such as Coca Cola, Gillette and the American Express Company.
Athelney Trust plc
Athelney Trust was founded in 1994 and one year later, became one of the ten pioneer members of the Alternative Investment Market. In 2008 the shares became Fully Listed. The assets of the Trust are allocated predominantly to companies with a market capitalisation of less than £300m with either a full listing on the London Stock Exchange or a trading facility on AIM or ISDX. The investment objective of the Trust is to provide shareholders with prospects of long-term capital growth, with the risks inherent in small cap investment minimised through a wide spread of holdings over various industries and sectors.
THE BENEFITS FOR INVESTORS IN THE COMPANY INCLUDE:
- Reduced share investment risk through a diversified investment portfolio;
- Convenient and simple administration of your investment as your single holding in GFL gives you access to a multitude of stocks;
- No entry or exit fee charged by the Company; and
- Easy access to information via the Company registered office or web site or the Australian Securities Exchange.
THE INVESTMENT OBJECTIVES OF GLOBAL MASTERS ARE TO:
- Increase Shareholder wealth by achieving capital growth over the medium to long-term without resorting to gearing; and
- Preserve and enhance the NTA per share after allowing for inflation.
IT IS GLOBAL MASTERS’ CURRENT POLICY TO MANAGE THE PORTFOLIO WITHIN THE FOLLOWING GUIDELINES:
- A substantial portion of the Company’s assets will be invested in the USA and the UK to provide investors with an exposure to other major world economies.
- The exposure to other currencies will remain unhedged; and
- GFL will aim to maintain more than 95 per cent of available funds in equity investments at all times. The remaining funds will be held in bank bills, similar cash securities and on deposit in the short term money market.
Since Berkshire Hathaway does not pay dividends, any income that it is received from the remainder of the investments will be used to defray expenses. Accordingly, it is unlikely that dividends will be declared for the foreseeable future.