Global Masters Fund Limited (Company) (ASX Code: GFL) was created to satisfy a growing appetite for investing globally in order to spread risk and to benefit from the rewards available from investing in the US and the UK.
The Board is responsible for all investment decisions in relation to the portfolio. It is made up of experienced
investment and business professionals. Directors shall at all times:
- Preserve the confidence of Shareholders.
- Adopt an irreproachable code of conduct towards Shareholders, fellow Board members, suppliers, staff and others with whom they have dealings.
- Not knowingly countenance any attempt to manipulate the market, nor to influence persons for such a purpose.
- Conduct their activities strictly in the Company’s interest; and
- Endeavour to maintain the highest standard of conduct and procedures in the management of the Company.
The reputation of the Company is of paramount importance and must be preserved at all times.
Globally Listed Investment Company
Global Masters Fund Limited (ASX Code: GFL) is an Australian-based, globally-listed Investment Company (LIC) on the Australian Securities Exchange (ASX). GFL was founded with the vision of achieving long-term capital growth. With our investors front-of-mind, Global Masters provides a focused, strategic and analytical approach to long-term capital growth.
We envision a prosperous and secure future for our financially-savvy investors, where your vote of confidence in us is returned through the creation of a concentrated portfolio of quality, growth-capable global companies, delivering superior performance and enabling our investors to spread risk investments through proactive investing and in-depth forensic research.
Created for investors seeking to invest in top-tier, high-quality global assets, the primary investment of Global Masters is in Berkshire Hathaway in the US and a diversified, actively managed portfolio of companies listed on the London Stock Exchange.
Listed in 2006, with a directorship featuring over a hundred years of combined experience in wealth creation, finance, and investment management, investment with Global Masters is an investment in the future growth of your capital.
Since Global Masters is listed on the ASX, it must adhere to stringent corporate governance structures and rigorous regulatory compliance, which protects the interest of shareholders and maintains accountability and transparency in our everyday operations.
The Global Masters Approach
As an “active investor” and experienced leaders in global asset management, our approach aims to maximise your capital gains for the definitive goal of steadfast, consistent long-term growth. We are not searching for limited, short-term gains due to swings in price on the stock market. Rather, our aim is to outperform the Australian All Ordinaries Index (“All Ords'' as it is commonly known) through smart discovery, detailed analysis and calculated retainment of investments that align with our investment philosophy - a track record demonstrating predictable, growing operating performance, supported by a strong balance sheet.
Global Masters aims to make a difference to wealth-focused Australians, smart retail investors, and performance-driven Self-Managed Super Funds (SMSFs) where security and stability are key. We take pride in our ability to uncover opportunities for the growth of your capital and ultimately, to build long-term wealth through proper due diligence and long-standing industry experience.
The Global Masters management team are committed to corporate governance excellence, applying the ASX Corporate Management principles in what we do. We have developed and successfully implemented a framework that strengthens our operations promoting industry best-practises through transparency, accountability and fundamentally safeguarding the interests of all our shareholders.
As a globally-focused LIC, our team’s learned expertise and years of experience allow us to proactively identify high-quality, profitable companies which we believe can maintain a sustainable competitive advantage over the long term (similar to that of Berkshire Hathaway), which embodies Warren Buffet’s “Economic Moat” principle.
By identifying stocks in companies that consistently expand their operations (and thus, increase profitability) in the same gainful manner as the Economic Moat principle, we fulfil our commitment to achieving long-term capital growth for the thousands of clients and the millions of dollars under management entrusted us with.
To achieve the goals of our clients and that of our fund, it is vital we provide an expertly managed investment vehicle for investors and increase their access to diverse companies globally, allowing for profit deriving from major investment trends expected to take form in the coming decade and beyond. Some key developments that we expect to be a major influence on a global scale include e-commerce, the cashless economy, the rise of quantum computing and artificial intelligence, the influence of world brands on the growing middle class in developing nations, electric-powered and driverless vehicles plus health care for the ageing population across many nations.
By having a stable, resolute mindset towards long-term growth, individuals and SMSFs alike can benefit greatly from investing in globally listed investment companies on the ASX such as Global Masters Fund Limited. This is a relatively simple and intelligent risk-management strategy when compared to solely owning Australian shares or as an alternative to purchasing individual international shares whilst domiciled in Australia (which can present additional challenges and add potential complexity to individuals and/or SMSF taxation obligations).
We strive to acquire stocks that deliver compounding returns through time. Our data-driven, technology-enabled investment team conducts a thorough, in-depth analysis where “no stone is left unturned”, where the combination of new technology and erudite experience go hand-in-hand. This unparalleled attention-to-detail to which we hold ourselves accountable to is what sets us apart from our competitors in the market, where a high standard of due diligence is personified in every investment decision we undertake.
To drive a return on capital which will compound as the years go by, at a rate higher than our competitors (no matter how marginal that percentage point difference may potentially be), we ultimately press to deliver amplified growth through the substantial total increase of shareholder value over time.
To bring our vision together, we conduct a holistic analysis on a national and international level on the performance, structure, behaviour, and decision-making of global economies, where both microeconomic and macroeconomic factors have to be considered for positive returns in the medium and long term. Stringent risk management structures are abided by and closely followed by our investment team, to manage the capital of our shareholders in a way that is considerate of risk and promotes long-term capital gains.
Since Global Masters Fund Limited LIC was first listed on the ASX we’ve been generating competitive returns for our highly valued clients with global investment strategies delivering outstanding results and attractive returns while protecting the capital of our investors.
Putting The “Global” In Global Masters
One of the primary topics on the minds of many new and experienced Australian investors alike is whether they should diversify their funds with a great majority of their equity investments being in Australian equities. Noting that 97% of international, publicly listed companies are registered in stock exchanges all over the world, there’s no doubt that having limited exposure to global equities can restrict investment opportunities for Australian investors seeking long-term capital growth.
The LIC provides investors with access to an actively managed portfolio of quality global companies such as Berkshire Hathaway in the US and Athelney Trust in the UK, uncovering primarily long-term high growth investment opportunities in companies with strong financial and long-term aspirations. We help Australian investors and SMFSs gain access to global stocks, broadening their opportunities and spreading the risk away from local companies.
Global Masters Fund Limited offers stockholders an introduction to the world of global asset management and access to quality-growth companies in stock markets/economies all around the world. Through an actively managed diversified portfolio of global, steady-growth companies and exposure to medium-to-long term market opportunities, Global Masters LIC offers capital growth throughout and capital protection for dedicated, future-focused longer-term investors seeking stability and growth over time.
The Global Masters Fund Investment Philosophy
- Investments should outperform the risk-free rate
- The price one pays determines the ultimate long-term return
- High-quality growth companies outperform over longer terms
- Achieve attractive risk-adjusted returns over the medium to long term;
- Minimise the risk of permanent capital loss through careful stock selection.
Initial Screening Process
- Return on Equity (ROE) - to determine how much profit a company generates relative to its total amount of shareholder equity.
- Revenue Growth – Percentage increase (or decrease) in a company’s revenue between a set period (usually a financial year)
- Interest Coverage Ratio (ICR) – review of a company's ability to cover interest payments with available earnings.
- Assessment of a country's economic foundations by reviewing the levels of Positive Peace.
- Understanding the Business Model – how the businesses work and how different entities of a business come together to create value for customers
- Sustainable Competitive Advantage - Business assets, qualities or skills which are difficult to replicate or surpass and offer a superior or favourable long-term position over its competitors.
- Organic Growth Opportunities – The ability of a company (and its management) to utilise its resources and assets to grow
- Assessing Management – How the leadership team contributes to the continued growth of the company through their skill and experience
- Assessing the Operating Activities of the organisation such as cash activities relating to net income
- 5 Year Risk Adjusted Total Return – Assessing the return on the investment, measuring considerations such as risk management and the performance or gain of the risk in relation to the investment risk. Risk-adjusted returns allow the investor to evaluate high-risk investments versus other low-risk options.
- Market Risk Analysis - The market risk is the potential value loss for a portfolio of investments as values fall as a result of systems risk sources or shifts in risk factors affecting the entire sector or market segment.
High Conviction Portfolio of Companies
Global Masters LIC features a disciplined, low-turnover portfolio of approximately 20-30 companies which exhibit sound business models and solid management with high returns on invested capital over time.
The select companies which we choose to be a part of the Global Masters, ASX-listed LIC are analysed in detail to determine proper alignment with our principles, feature strong, free cash flow and exhibit typically high Environmental, Social and Governance (ESG) performance relative to their competitors, supporting the future of your capital growth.
How do Listed Investment Companies (LICs) work?
The purpose of a Listed Investment Companies (LICs) is to provide investors exposure to a broader range of assets, and an effective method to diversify one’s portfolio and spread risk through a type of instrument managed by a professional, experienced investment team. The company can invest in a wide variety of assets, including but not limited to, securities, resources, property, and bonds. Investors purchase shares in a company when they invest in a LIC.
LICs can have an internal or external fund manager, who has the experience and knowledge, selects the company’s investments and overall management of the LICs’ investment portfolio. An LIC is an incorporated public company and lists a fixed number of shares on the ASX by way of an Initial Public Offering (IPO).
LICs are “close-ended” investment structures – where restrictions are placed on the number of new securities or cancellations which are allowed on an annual basis. No new shares are issued or cancelled as investors join or leave, accordingly, when shares are purchased on the ASX, this occurs between shareholders.
Investors seeking an additional income stream (sometimes referred to as “Income Investors”) may also invest in LICs that offer dividends, which can make reinvesting dividends relatively easy, enabling the growth of compound interest through a relatively easy reinvestment process.
Note: As 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 by GFL for the foreseeable future).
Why should I invest in an LIC rather than invest directly?
LICs have been in existence for a long time as a popular investment instrument for retail Australian investors and SMSFs attributed to the diversification provided across industries and economies. Simply put – with one purchase, you can instantly diversify your investments, with your investment in the LIC actively managed by an experienced investment manager at a low cost.
As the opportunity and attractiveness of buying international shares in Australia has grown since the 1990s and become more widespread through the acceleration of globalisation, LICs have become an attractive “active” investment option for investors without the time (or knowledge) to monitor, manage, and trade multiple (ranging from 10-20 up to 100 for some LICs) direct investments on share markets around the world.
Global Masters is an Australian Securities Exchange Listed Investment Company (LIC) with an aim for long term investment performance, and capital growth to outpace inflation. We share the goals of our clients, and in turn, our successes as well.
Who manages the investments in an LIC?
In essence, LICs operate in a similar way to a managed fund, where a manager is responsible for its investments. A key difference is that the fund manager of a LIC can focus primarily on portfolio management, and less on the effects of cash flow due to the close-ended structure of LICs.
The portfolio of GMF is managed by EC Pohl & Co Pty Ltd which has a highly distinguished funds management investment team. The composition and performance of the investment portfolio are monitored by the Board of Directors, which comprises of investment professionals with many years of national, regional and international experience in business, investments, global asset management, and funds management.
Dr Manny Pohl AM is the Managing Director and major Shareholder of EC Pohl & Co Pty Ltd. Information on the investment manager is available from www.ecpohl.com.
What is the difference between an ETF and a LIC?
|Investment Style||Passive – emulate performance of an index (e.g. ASX200)||Active – outperform a index or other set benchmark|
May charge performance fees
|Legal structure||ETFs are structured as a Trust, where investors own units in the trust.||LICs are incorporated as a Company, where investors own shares in the company.|
|Diversification||ETFs follow an underlying index (i.e. the market) that provides access to a variety of asset types, resulting in greater diversification.||LICs offer broad diversification for various asset classes (e.g. Australian, Shares, International shares etc) and range typically from 20-100 companies.|
|Structure||Open ended – additional units can be created in response to demand||Closed Ended – there are a fixed number of shares available at any given time|
|Dividends/Distributions||Earnings are distributed to shareholders||Dividends are optional and distributed as per the LICs strategy|
|Price and Net Asset Value (NAV)/Net Tangible Assets (NTA)||Price of the ETF trades close to NAV||Can trade at discount/premium (listed price can vary from NTA), as determined by the market|
|Tax Considerations||Tax is not paid on earnings, as these are passed down to investors who pay tax at their individual income tax rate. i.e. distributed pre-tax returns.||Subject to the company tax rate on income and realised capital gains which they can hold onto or pay out to investors, who are liable for tax at their individual income tax (minus any franking benefits/tax credits).|
How can I invest in Global Masters Fund Limited?
As a Listed Investment Company on the Australian Securities Exchange (ASX), shares in Global Masters Fund Limited are listed on the ASX. To become a shareholder, simply purchase shares through a stockbroker, online broker, financial adviser, wrap, or other ASX brokerage platform using the ASX Code “GFL”. For a complete list of brokers, visit http://www.asx.com.au/prices/find-broker.html.