Global Masters Fund Ltd (GFL) was created for investors seeking to participate in long term capital growth by investing in quality global assets. The primary investment of Global Masters is in Berkshire Hathaway Inc, the New York Stock Exchange listed investment company managed by legendary investor, Warren Buffett. In addition, Global Masters has a portfolio of investments including companies listed on the London Stock Exchange, Australian Stock Exchange and Johannesburg Stock Exchange.
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 May 2006. 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 Apple, Coca Cola, Kraft Heinz and the American Express Company.
Global Masters Fund has appointed EC Pohl & Co to manage a portfolio of investments listed on the London Stock Exchange. The investment philosophy is built upon the belief that the economics of business drives long term investment returns. This diversified, actively managed portfolio is made up of long-term investments in profitable, high quality, growth businesses. Over time, the portfolio will further expand to include companies listed in other jurisdictions, in turn making Global Masters Fund a truly global investment company.
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.