Long-term capital growth doesn’t have to be risky, time-consuming or out of your reach
If you have struggled with investment decisions recently, you’re not alone. Economic uncertainty has been at the forefront of everyone’s mind lately, and with good reason. Between political unrest, a global pandemic, and more choices than ever when it comes to investing, it’s easy to become paralysed by overwhelming analysis.
Read on to learn about some of the common pain points encountered by investors today, especially those on the younger side or who are new to the market. The Global Masters Fund offers solutions that reduce and even eliminate many of these issues, including the high risk, all-consuming time commitment, and unavailability of quality assets, that plague investors in 2021.
Investors today need confidence they can weather today’s market volatility and remain resilient in the future
Certainly, the volatility of global economies today is a top concern when it comes to investing for people of all ages and levels of capital. Heightened unpredictability related to the coronavirus pandemic, new political administrations, Brexit, climate change, and more is a valid worry.
Investors in today’s market want to feel they can take action today and withstand changes over time, so that they can meet their investment goals over the long term, whether that’s retirement, starting or expanding a business, establishing educational funds for children, or increasing personal net worth. Finding investments that strike a balance between profitability and risk is always tricky, but emerging from 2020, there is greater apprehension than in decades, possibly since World War II, according to economists and financial experts. They cite the following as major anxieties for investors:
- Lingering economic impact from 2020, especially in the UK and the US
- The potential for surprise inflation
- Coronavirus problems, including new strains and delays in vaccine rollout
- Austerity and global fiscal belt tightening
- Flares in trade and geopolitical conflicts
How do you locate the sweet spot between too much risk and too few gains? Moreover, how do you do that in the face of the current feeling of disequilibrium?
Investors thinking about long-term gains right now are generally people between the age of about 30 to 50. They’re seeking investments they can ride out over years to meet overarching financial goals. Therefore, investments that are forward minded and have a track record of solid performance are highly desirable. Picking a strategy and sticking with it, which has worked so well for investing gurus like Warren Buffet, who takes a long-term perspective, is the way to go… if you can find those winners.
Unfortunately, those top-performing investments you can rely on aren’t equally available to everyone. Whilst online trading is gaining ground, so investors in Australia can, for example, purchase shares on the New York Stock Exchange in America, you may pay higher fees to do so.
Exposure to some assets may be prohibitively expensive or require a minimum purchase. And of course, you have to understand the various US exchanges, which are more convoluted and come with a far higher market capitalisation than the Australian Securities Exchange. Investing in the best companies can therefore wind up feeling out of reach.
Most people today don’t have the time to manage their own investment portfolio or develop sophisticated investment strategies.
As mentioned above, learning the ins and outs of the market is daunting, especially if you want to invest outside Australia. It requires a time commitment that few investors have. Most people are already stretched far too thin as it is, between work, family, home maintenance, and all the other things that eat up the day.
Additionally, learning about the financial markets isn’t just a one-off achievement. You have to monitor the performance of various companies and stay on top of changes that can affect returns. There’s not always a direct correlation between the market and what’s going on in the world either. Sometimes a small event halfway across the globe can change how a business operates, as we often saw in 2020. If it were easy to predict and track these things in our precious spare time, people wouldn’t do it as a full-time career.
We’d like to propose a solution to the hurdles you’ve just read above: the Global Masters Fund (ticker sign GFL on the ASX). Designed to eliminate all the concerns investors legitimately have today, the Global Masters Fund brings the long-term growth and stability you’ve been seeking, along with the opportunity to broaden your investments globally through our portfolio.
The first thing you’ll be impressed with is the Global Masters Fund’s performance. When other investments were flailing in 2020, thanks to international unrest and the coronavirus pandemic, the Global Masters Fund turned in solid results, ending the year on a high note.
As you’ll note in our fund reports, we finished with a 3.9% improvement on the prior quarter in terms of net tangible assets (NTA), up an impressive 16.1% from June of 2020.
All of our investments did well globally, and we’re on track to make 2021 a year for further capital growth.
Additionally, the Global Masters Fund portfolio has a stellar performance record since its inception, up 7.6% since 2006. At three years, we achieved an increase of 7.7% annually, with finishes of 10.8% and 12.4% at the five- and 10-year marks, respectively.
At Global Masters Fund, we understand that you’re not only concerned with the current market but with what’s coming down the road in two, five, 10, or 20 years. We want to reiterate that this investment was created precisely for long-term progress. You can dive into our investment strategy further below, knowing that we have your future in mind when managing the fund.
The Global Masters Fund operates a bit differently from other investments you may be familiar with. Rather than paying dividends, which you must then either reinvest or cash out, the fund builds value via the capital appreciation of shares over time. This system is inherently geared towards the steady, long-term growth investors in the 30- to 50-year-old age bracket are looking for.
The Global Masters Fund includes top investment in the United States and the United Kingdom. Our primary investment is with Berkshire Hathaway Inc., which is listed on the New York Stock Exchange (NYSE) and managed by legendary investor Warren Buffet.
Buffet is renowned for his ability to choose investments for his holding company that meet the strictest standards for value and probability of positive future performance. Berkshire Hathaway has substantial holdings in a diverse range of sectors, including GEICO Insurance, Coca Cola, American Express, Gillette, and many more desirable investments.
Warren Buffet’s philosophy of investing encompasses multiple factors, which we agree are essential in evaluating businesses for investment:
- Company return on investment over 10 years
- Debt-to-equity ratio
- Profit margins
- Public stock offering (IPO) at least 10 years in the past
- Marketplace competitive advantage
- Undervalued in current market capitalisation
The Global Masters Fund also invests in Athelney Trust PLC in the UK, traded on the London Stock Exchange. Another investment intended to focus on long-term growth with risks minimised by diversity, this represents an enviable chance to invest in the global marketplace outside Australia.
As well as availing yourself of Warren Buffet’s unrivaled investment strategies by investing in Berkshire Hathaway through the Global Masters Fund, you will also enjoy taking advantage of our directors to do the heavy lifting for you. Our directors bring decades of financial and business experience to the fund. It’s their job to manage the portfolio, so you can relax and do as much or as little as you’d like.
Investing in the Global Masters Fund isn’t for everyone. Some people want the roller coaster of short-term investments and shares that pay dividends. But if long-term growth is your goal, and you welcome the freedom having professional portfolio managers brings you, the Global Masters Fund can change your investing game plan in ways you never thought possible.
Feel free to reach out with any questions or enquiries about becoming a Global Masters Fund shareholder. We’ve also prepared these FAQs below to cover the most common questions and fill in with more information.
FAQs
The Global Masters Fund is an investment company created to assist investors desiring to participate in quality global assets in order to realise long-term capital growth. Its primary holding comprising 62% of the portfolio is in Berkshire Hathaway, Inc., traded on the New York Stock Exchange, a portfolio of growth equities traded on the London Stock Exchange (21%) and Flagship Investments quoted on the Australian Stock Exchange (10%).
The investment objectives of the Global Masters Fund are twofold. The first objective is to increase shareholder wealth over the medium to long term via capital growth without gearing. The second objective is to both preserve and enhance net tangible assets (NTA) per share, after factoring for inflation.
The Global Masters Fund is listed on the Australian Securities Exchange (ASX) under the ticker symbol GFL. The fund was incorporated in New South Wales in May of 2004 and has been listed since May of 2006.
During the last reported quarter ending with December 2020, the Global Masters Fund portfolio witnessed solid returns across all investments in their home currency:
- Berkshire Hathaway (NYSE: BRK.A) posted +8.7%
- Flagship Investments (ASX: FSI) posted +17.5%
- Athelney Trust (LSE: ATY) posted +16.2%
- UK portfolio posted +8.9% over the quarter
These results were quite promising given the nature of disruption globally seeded by the coronavirus pandemic. To stabilise and bolster their respective economies, nations where the Global Masters Fund holds investments have implemented a variety of strategies that have been successful thus far.
In the United States:
- A $900 billion stimulus package announced at the end of Q4
- Continued quantitative easing encouraged by the Federal Reserve
- Multiple vaccines to be available throughout 2021
In Europe and the United Kingdom:
- An agreement between the EU and the UK on a Brexit trade deal
- Visa plans for workers to live and work between the UK and the EU
- The UK will be able to negotiate trade deals with other nations
In Australia:
- An aggressive plan to fight COVID-19 with work and social restrictions
- Interest rates maintained at 0.1% with the Reserve Bank of Australia
- A $100 billion quantitative easing program
As of December 31, 2020, the Global Masters Fund portfolio NTA (before estimated tax on unrealised gains) was $27,272,322 (254.3 cents per share). A Global Masters Fund review shows this was a 3.9% improvement on the prior quarter and was 16.1% higher than at the close of June 2020.
The Global Masters Fund (ASX GFL) presents a unique opportunity for investors to gain exposure to other major world economies and investments that might otherwise be unavailable to them, particularly in the US and the UK. We aim to maintain 95 percent or more of available funds in equity investments and focus on investments that have a history of strong share performance, such as Berkshire Hathaway Inc.
Our portfolio offers multiple additional benefits for investors:
- Investment risk is reduced through a diversified portfolio.
- We provide easy access to and administration of your investment.
- There are no fees for entry or exit charged by the Company.
- Portfolio performance is continuously monitored by the GFL board of directors.
- Investors appreciate competitive long-term capital growth.
Value creation for Global Masters Fund shareholders comes primarily from capital appreciation of their shares (increase in the Global Masters Fund share price over time). This is because the main investment of the Global Masters Fund is in Berkshire Hathaway Inc., listed on the New York Stock Exchange (NYSE) which does not pay a dividend.
Any income received from other investments of the Global Masters Fund is reinvested in the company to defray expenses. This structure works well for shareholders interested in long-term gains versus short-term boom and bust cycles.
Speak to your broker or utilise an online trading platform to acquire shares. We welcome enquiries from those interested in buying shares in the Global Masters Fund. You may ring us on 1800 352 474 or email us at: info@globalmastersfund.com.au.
Meanwhile, to stay current with pertinent information about the Global Masters Fund, please subscribe to our newsletter and enjoy the news, announcements, and performance sections of our website. You may also wish to follow us on our social media channels. We encourage all our investors to keep up with market news and global economic conditions in order to maximise their investment experience overall.
Important Notice
The information provided in this article is for information purposes and should not be construed as investment advice or an investment recommendation. GFL may not be suitable for your personal financial needs. Consult professional financial advice before making any investment decisions
