Global Masters Fund Limited · ASX:GFL
Global Masters Fund — Debt Investor Presentation (October 2021)
28 slides from Global Masters Fund's debt investor presentation, Oct 19, 2021
Slide 1: Global Masters Fund Limited: Offer of Unsecured Convertible Notes
For personal use only Presentation | October 2021 globalmastersfund.com.au Global Masters Fund Limited Offer of Unsecured Convertible Notes 1
Slide 2: Disclaimer
For personal use only Disclaimer This presentation has been prepared by Global Masters Fund Limited (“Global Masters”, “GFL” or the “Company”). This presentation and its contents have been distributed in confidence and may not be reproduced or disclosed to any other person. The distribution of this
Slide 3: Global Masters Profile
For personal use only Global Masters Profile ● Global Masters Fund Limited (GFL) was listed on the ASX in 2006 to provide a vehicle for Australian Investors, seeking long-term capital growth through Berkshire Hathaway Inc ● Initially GFL was established as a passive investment vehicle holding key in
Slide 4: Offer Details
For personal use only Offer Details Prospectus www.globalmastersfund.com.au/gfl-notes/ Boardroom Applications ● Unsecured Redeemable Convertible note https://notes.globalmastersfund.com.au ● Total offer size of up to $10.0 million ● Offer price of $3.10 ○ Interest rate of 5.50% paid quarterly until
Slide 5: Purpose of the Offer
For personal use only Purpose of the Offer ● To grow the size of the company ● Seek to increase the visibility, recognition and relevance to stockbrokers and financial planners ● Seek to expand the coverage by research houses ● Reduce the MER and ICR ratios by spreading the limited fixed costs of op
Slide 6: Investment Objectives
For personal use only Investment Objectives ASSET MIX Investment Objectives ● Achieve medium to long-term capital growth and income through investing in a diversified portfolio of international companies; and ● Preserve and enhance the NTA backing per share Investment Mandate ● Invest a substantial
Slide 7: Benefits to Investors
For personal use only Benefits to Investors ● No historical gearing on the balance sheet ● 1:1 Conversion ratio of notes to shares ● Option on a manager with top quartile investment performance since inception ● Professional, disciplined management of an investment portfolio by EC Pohl & Co’s highly
Slide 8: Performance & Portfolio Overview
For personal use only Performance & Portfolio Overview 8
Slide 9: Fund Manager Profile
For personal use only Fund Manager Profile Independent Boutique Best Practice Operations ● EC Pohl & Co established in 2012 ● World class systems ● 100% staff ownership ● GS007 Unqualified Audit Opinion 2021 ● Consistently in first quartile of Morningstar ● No Compliance or Mandate Breaches Survey ●
Slide 10: Portfolio Performance
For personal use only Portfolio Performance 3m 1y 3y 5y 10y Inception GFL Portfolio ^ 9.6% 40.4% 13.6% 14.0% 15.0% 8.6% All Ordinaries Index 8.1% 26.4% 6.4% 7.4% 5.0% 2.5% +/- +1.5% +14.0% +7.2% +6.7% +10.0% +6.1% ^ Source: EC Pohl & Co Pty Ltd Portfolio Performance to 30 June 2021 Gross performance
Slide 11: LIC Comparative Performance
For personal use only LIC Comparative Performance Premium/ Market Cap $m 1y 3y 5y Discount to NAV^^ Global Masters 25.6 46.6% 4.7% 12.0% -23.8% Fund Antipodes Global 543.4 28.7% 4.7% na -11.4% Pengana International 336.7 33.9% 12.8% 8.0% -8.1% Lion Selection 65.3 -8.4% 13.2% 7.4% -27.4% MFF Capital
Slide 12: Active Equity Performance - UK Only
For personal use only Active Equity Performance - UK Only 3m 6m 1y 3y Inception Portfolio (GBP) 10.7% 16.5% 35.2% 16.9% 15.9% FTSE 4.8% 8.9% 14.1% -2.7% -1.4% Portfolio (AUD) 12.5% 21.0% 39.0% 17.7% 17.5% All Ordinaries 8.1% 10.7% 26.4% 6.5% 7.2% +/- +4.4% +10.3% +12.6% +11.2% +10.3% ^ Portfolio Per
Slide 13: Active Equity Performance - Global
For personal use only Active Equity Performance - Global 3m 6m 1y Inception Portfolio (AUD) 6.5% 20.7% 29.7% 29.3% MSCI (AUD) 3.4% 12.7% 25.9% 24.7% +/- +3.1% +8.0% +3.8% +4.6% ^ Portfolio Performance to 30 September 2021 ➔ Portfolio Size between 40-60 investments and is currently exposed to Austral
Slide 14: Portfolio Holdings
For personal use only Portfolio Holdings Top 10 Holdings – UK Top 10 Holdings - Global Ashtead 9.8% Alphabet 5.7% Liontrust Asset Management 7.0% Apple 5.7% Rightmove 5.8% Facebook 4.9% Spirax-Sarco Engineering 5.5% Microsoft 4.5% Diploma 5.3% Taiwan Semiconductor Mfg Co 3.9% Relx 5.2% Adobe 3.7% Ja
Slide 15: Active Portfolio & Investment Process
For personal use only Active Portfolio & Investment Process 15
Slide 16: Investment Philosophy
For personal use only Investment Philosophy The economics of a business drives long-term investment returns Investing in high quality, growth businesses, that have the ability to generate predictable, above average economic returns will produce superior investment performance over the long-term ● Va
Slide 17: Investment Process
For personal use only Investment Process We look for high quality businesses, in the growth stage of their lifecycle, who 01 ASSET SELECTION are capable of generating above average returns on their invested capital through time. The research process is designed to minimise the likelihood of default
Slide 18: Investment Selection
For personal use only Investment Selection There is no substitute for due diligence. DURABLE FAVOURABLE BUSINESS INDUSTRY MODEL We follow our Pillars of a Quality Franchise framework – the six-pillars the are interrelated and interdependent and provide a holistic assessment. SUSTAINABLE ESG & QUALIT
Slide 19: Market Inefficiencies We Exploit
For personal use only Market Inefficiencies We Exploit QUALITY GROWTH Growth Anomaly On average the market undervalues extremely high-quality, capital efficient, organic growth businesses. SUSTAINABLE OPPORTUNITY Time Arbitrage The market tends to overemphasize temporary themes and short-term factor
Slide 20: ESG & Sustainability
For personal use only ESG & Sustainability Our Quality Franchise framework ensures superior sustainability We exclude the following sectors due to ESG issues: and stewardship requirements. ● Gambling ● The sustainability pillar focuses on areas of a business ● Pornography where there may be risk to
Slide 21: Annexures
For personal use only Annexures 21
Slide 22: Strategic Milestones
For personal use only Strategic Milestones INVESTOR EXPOSURE TO CAPITAL RAISE + UNSECURED BERKSHIRE HATHAWAY ACTIVE UK PORTFOLIO CONVERTIBLE NOTE Initially the company was founded to Rights issue in November 2017 raising Unsecured convertible note offer provide investors an avenue to invest in $4.3m
Slide 23: Fees & Expenses
For personal use only Fees & Expenses ● GFL has no fees associated with the passive investments (80% of funds) ○ Passive investments include Berkshire Hathaway and Flagship Investments ● EC Pohl & Co is paid 1% management fee, and 20% performance fee for the actively managed portfolio. ○ Management
Slide 24: Active Transition Supports Convertible Note
For personal use only Active Transition Supports Convertible Note Income derived from active global equity portfolios will support convertible note related expenses ACTIVE v PASSIVE MIX • Actively managed assets will continue to shift toward a 50/50 split between active/passive over medium term • UK
Slide 25: Offer Timetable
For personal use only Offer Timetable Event Date Priority Offer Record Date 18 October 2021 Announce offer and lodge prospectus 19 October 2021 Notice of Meeting issued to shareholders 19 October 2021 Offer Opens 27 October 2021 Offer Closes 12 November 2021 AGM of shareholders 18 November 2021 Issu
Slide 26: Key Risks
For personal use only Key Risks ● Each potential investor in the GFL Notes must determine the suitability of the investment considering their own circumstances. A potential investor should not invest in the GFL Notes unless they have the expertise (either alone or with the help of a financial advise
Slide 27: Noteholder Protections
For personal use only Noteholder Protections Noteholder exit rights If a Change of Control Event or a Delisting Event occurs, the Noteholder may require GFL to redeem all of the Notes held prior to the Maturity Date for an amount equal to their Face Value together with any accrued (but unpaid) inter
Slide 28: Global Masters Fund Limited
GLOBAL MASTERS FUND LIMITED
Global Masters Fund — Debt Investor Presentation (October 2021) on 6ix