Annual Report
30 June 2017
FINANCIAL YEAR END
30 June 2017
ANNUAL GENERAL MEETING
The Annual General Meeting of
Global Masters Fund Limited:
WILL BE HELD AT:
The office of
Rothsay Chartered Accountants
Level 1
12 O’Connell Street
Sydney NSW 2000
TIME:
2.00pm (NSW Time)
DATE:
Friday 27 October 2017
INVESTING IN GLOBAL
MASTERS FUND LIMITED
Investors can purchase shares in
Global Masters Fund Limited through
the Australian Securities Exchange.
ASX code: GFL
Global Masters Fund Limited
ABN 84 109 047 618
Registered in NSW
12 May 2004
GLOBAL MASTERS FUND LIMITED DIRECTORS (from left to right)
Dr Manny Pohl, Murray d’Almeida, Jonathan Addison and Patrick Corrigan AM
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6
11
12
16
30
31
34
34
35
TABLE OF CONTENTS
Chairman’s Report
Directors’ Report
Auditor’s Independence Declaration
Corporate Governance Statement
Financial Report
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Investments
Corporate Directory
Global Masters Fund
HIGHLIGHTS FOR 2017
Highlights for
the year ending
June 2017
The Net Tangible Assets (NTA) Value of the Company increased by 10.5% after
recognising the deferred tax liability on unrealised gains, whilst the All
Ordinaries Index of ASX increased by 8.5% over the twelve months ended 30
June 2017.
In June, the Company acquired a further 52,281 shares in Athelney Trust PLC
(ATY) for AUD$222,749.
During the year, the Company sold 38.5% of its holding in Flagship Investments
Limited (FSI) and made an overall gain of $178,107. The proceeds on the sale of
the FSI shares were used to acquire shares in ATY on LSE and in terms of the
investment mandate to set aside approx. $1 million for the Manager to invest in
UK and Europe.
Major Investments
June 2017
BRK.A
FSI
ATY.LSE
OVERVIEW
COMPANY PROFILE
Global Masters Fund Limited (the “Company”) was listed on the ASX in 2006 with the strategy to provide a vehicle for Australian investors,
seeking long-term capital growth through investing in Berkshire Hathaway Inc listed on the New York Stock Exchange (NYSE) and other
global investments. The Company’s policy is not to hedge the underlying currencies of its portfolio of global investments.
The portfolio is managed by EC Pohl & Co Pty Ltd which has a strong funds management investment team. The composition and
performance of the investment portfolio is monitored by the Board of Directors, which comprises business people with many years of
experience in the business, investment and funds management.
There is no fixed management fee and no performance fee payable to the Manager for the administration of the Company and the existing
investments in Berkshire Hathaway and Athelney. However, for the new mandate given to the Manager (excluding the existing
investments), there will be a fee payable for good performance and active management and in terms of a pre-determined formula.
OBJECTIVES
The investment objectives of Global Masters Fund Limited are:
To achieve medium to long-term capital growth and income through investing in listed international companies, including Berkshire
Hathaway Inc (NYSE), Athelney Unit Trust Plc (LSE) and Flagship Investments Limited (ASX); and
To preserve and enhance the NTA backing per share after allowing for inflation.
INVESTOR BENEFITS
The benefits for investors in Global Masters Fund Limited are:
Reduced share investment risk through a diversified investment portfolio;
Professional and disciplined management of an investment portfolio;
No fixed management fees or performance fee;
No entry or exit charges made by the Company; and
Easy access to information via the Company’s website www.globalmastersfund.com.au.
INVESTMENT MANAGER
The management of the Company’s investment portfolio is undertaken by EC Pohl & Co Pty Ltd, which also provides administration support.
Dr Manny Pohl is the Managing Director and major shareholder of EC Pohl & Co Pty Limited Information on the Investment Manager is
available from www.ecpohl.com. .
Global Masters Fund Limited
4
CHAIRMAN’S REPORT
Dear Shareholder,
I am pleased to present the 12th Annual Chairman’s Report of Global
Masters Fund Limited for the 2016/17 financial year.
The Year in Review:
During the past twelve months, global markets have been subjected
to heightened uncertainty and increasing volatility, due to a number
of concerns:
Continued uncertainty in Europe
Patchy but sustained recovery in the United States
China’s increasing debt burden, and volatility in the economy
Historically low interest rates and uncertainty about their future
direction.
Immediately following the UK referendum to leave the European
Union (EU), global markets initially reacted badly, but quickly
recovered, have largely been resilient across most regions - “Brexit”
did not cause a global financial crisis. However, the longer-term
impact of Brexit may not be known for some time, possibly years,
and the final result is no clearer than it was a year ago. Future
trading relationships is still dependent on the final outcome of the
EU negotiations.
To give some indication of the complex balancing act being pursued
by policy makers and central bankers I quote from a recent Athelney
directors report:
Setting interest rates in the UK is a delicate business these days. The
hawks on the Monetary Policy Committee cite falling unemployment,
surveys suggest that companies are keen to invest and export and
that economic models from the past predict that joblessness this low
will soon push inflation higher. To head off these inflationary
pressures, hawks think that there is an urgent need to remove the
quarter point cut of
last August to slow spending, prevent
unemployment falling
Following the Brexit vote Sterling did fall in value, which affects the
value of your
However, the
investment through Athelney.
companies that Athelney invest in have, in the past, proved to be
reasonably recession proof, and the overall strategy is little changed.
The longer-term impact of the Trump Presidency is also uncertain
particularly as it may affect international trading relationships,
nevertheless the US economy remains stronger and the value of the
$US has improved but is affected by an unknown short term
direction of interest rates. In some views the share market appears
to be overvalued but this also depends on the view of interest rate
movements and the impact of trading relationships.
As a matter of policy, the overseas assets have not been hedged on
the basis that most investors seeking offshore assets seek both
company and currency exposures. This policy is reviewed from time
to time.
In spite of the political turmoil during the year, the Australian share
market produced a reasonable return over the year with the All
Ordinaries Index rising by 8.5%.
The Net Tangible Asset per share (NTA) of the Company increased by
10.5% in 2016/17 compared with an increase of 5% in the prior year.
Net assets increased by $1.4 million. The net profit for the year (after
all expenses) was $68,267 compared to $1,044 in the previous year.
Global Masters Fund Limited
5
The Market Outlook
We remain cautiously optimistic about the outlook for markets
generally, but it is not without risks. Last year the Australian economy
was dealing with a depressed commodity market, to some extent this
has changed and commodity prices remain volatile, in the recent past
the $A has strengthened to some degree but is still affected by low
interest rates, and uncertainty regarding future direction. This
strength has in part being due to weakness in the $US as well as
improved commodity prices.
In our view, companies with strong market positions, strong balance
sheets and good management, will continue to perform well and
reward patient investors, although we expect market returns to be
modest again in the coming year.
With continuing very low and sometimes negative interest rates,
there has been an on-going interest in income producing shares and
investors generally are looking more carefully at companies with
good balance sheets and a profitable business. At a corporate level
companies are finding debt cheaper than new equity to meet their
capital requirements.
Given the uncertainties in the Australian economy which still depends
to a large extent on developments in China we believe that Australian
Investors will continue to benefit from exposure to offshore assets
provided that they are invested in good quality business.
investments through Berkshire
The underlying Global Masters
Hathaway and Athelney are well placed to continue to add value
through their strategies and careful management. In addition to this,
we have recently further reduced our position in Flagship’s and
authorised through a mandate with EC Pohl & Co Pty Ltd an
investment of approx $1 million in European and UK market.
The Board
I particularly want to thank my fellow Board members for their
support and input in the past year. We had the privilege of welcoming
Murray d’Almeida as a new Director to your Board; his corporate
expertise adds considerable value to our deliberations. Special
thanks must continue to go Dr Manny Pohl and his small but brilliant
team of investment professionals at E C Pohl & Co. Our success would
not be possible without the outstanding contribution of these very
committed individuals.
I also take this opportunity to thank Mr Brian Jones as our Company
Secretary for his continuing efforts to ensure that the Company is fully
compliant with all our legal and ASX obligations.
I thank Shareholders for their on-going support and look forward to
another good year ahead.
Yours sincerely
Jonathan Addison
Chairman
DIRECTORS' REPORT
Your Directors present their report on Global Masters Fund Limited for the financial year ended 30 June 2017.
1. DIRECTORS
The following persons were Directors of Global Masters Fund Limited from the beginning of the financial year until the date of
this report, unless otherwise stated: J Addison, Dr E Pohl, P Corrigan AM, M d’Almeida appointed 10 October 2016 and Jason
Pohl is an Alternate Director to Dr Manny Pohl.
2.
INFORMATION ON DIRECTORS
Jonathan L Addison
B Ec, ASIS, CFTP (Snr), MAICD
Dr Emmanuel (Manny) C Pohl
B.Sc (Eng), MBA, DBA, FAICD, MSAFAA, F Fin
Non-Executive Chairman
Member of Audit and Risk Committee
Managing Director
Member of Audit and Risk Committee
Experience and expertise
Non-Executive Chairman since 19 April 2005
Over 32 years experience in the investment
management industry. Investment consultant
and former CEO of the Meat Industry Employees
Superannuation Fund. Previous experience
includes Director and Asset consultant with the
Corporate Finance Section of Pricewaterhouse
Coopers and Manager at Sedgwick Noble
Lowndes.
Other Current directorships
Director of Gardior Ltd
Athelney trust PLC (Alternate to Dr E C Pohl)
Chairman of Investment Committee of Centaur
Property Funds Management Ltd
Member of Investment Committee for Diversa
Trustees Ltd
Former Listed Company directorships
in last 3 years
Retired International Chairman of African Enterprise
International
Interest in Shares
Nil
Experience and expertise
Managing Director since the inception of the
Company in April 2005.
Extensive experience in the funds management
industry.
Other current directorships
Managing Director of Flagship Investments Limited
Executive Director of Barrack St Investments Limited
Chairman of Athelney Trust Plc
Chairman of EC Pohl & Co Pty Ltd and its subsidiaries
Chairman & President of Bond University Rugby Club
Director of Bond University Limited
Director of Huysamer International Holdings (Pty) Ltd
Trustee of Currumbin Wildlife Hospital Foundation
Former Listed Company directorships
in last 3 years
None.
Interest in Shares
Directly Held: 5,000
4,604,049 ordinary shares
Has a relevant interest in shares in the Company
over which he holds a Power of Attorney
arrangement with a number of Shareholders.
Global Masters Fund Limited
6
Jason C Pohl
B.Com, LLB
Alternate Director
Experience and expertise
Appointed an Alternate Director to
Dr Manny Pohl on 20 June 2016.
Jason has six years of professional
experience in fundamental bottom-up
investment research at
ECP Asset Management Pty Ltd.
Originally pursuing a legal career, Jason
spent his initial stages of his professional
career working for Ashurst (previously
Blake Dawson) before being admitted as a
Legal Practitioner in the NSW Supreme
Court.
Other current directorships
Director of The Tabu Vodka Co Pty Ltd
Former Listed Company directorships in
last 3 years
Interest in Shares
Nil
Patrick Corrigan AM
HonD (Bond University)
Murray H d’Almeida
FAICD
Non-Executive Director
Chairman of Audit and Risk Committee
Experience and expertise
Appointed a Non-Executive Director on
29 November 2006.
Extensive experience in accounting,
financial management and other
commercial acumen, including
investments. Chairman of an international
freight forwarding company for numerous
years.
Other current directorships
Emeritus Chairman of Gold Coast Regional
Art Gallery
Chairman of Qantas Art Scholarship
Committee
Director of Aboriginal Benefits Foundation
Limited
Director of National Portrait Gallery in
Canberra
Former Listed Company directorships
in last 3 years
Director Flagship Investments Limited
(Retired 6/11/15)
Non-Executive Chairman of UBI Logistics
(Australia) Pty Ltd (Retired 28/2/2016)
Deputy Chair of Air Freight Export Council
of NSW Inc
Non-Executive Director
Member of Audit and Risk Committee
Experience and expertise
Director since 3 November 2016.
Over 36 years of diverse national and
international business experience. Founded
the Retail Food Group and developed a
presence in seven overseas countries.
Subsequently has maintained operating and
board positions within a range of financial
services, mining, commercial, academic,
government and sporting businesses and
organisations.
Other Current directorships
Chairman of Barrack St Investments Limited
Chairman of BPS Technology Limited
Director Triple Energy Limited
Deputy Chancellor Southern Cross
University
Trustee of Currumbin Wildlife Foundation
Member of Gold Coast Light Rail Business
Advisory Board
Former Listed Company directorships
in last 3 years
Chairman of Management Resource
Solutions PLC
Interest in Shares
Nil
Interest in Shares
Nil
Global Masters Fund Limited
7
DIRECTORS’ REPORT (Continued)
3. PRINCIPAL ACTIVITIES
The principal activity of the Company is investing in Berkshire
Hathaway Inc on NYSE, Athelney Unit Trust Plc on LSE and Flagship
Investments Limited on the ASX. There have been no significant
changes in the nature of this activity during the year.
4. REVIEW OF OPERATIONS
Our portfolio outperformed the market with the NTA increasing by
10.5% over the past twelve months, as compared to the ASX All
Ordinaries Index which increased by 8.5% in spite of the political
turmoil that occurred during the year.
The past financial year was very much a year of two halves as growth
stocks under-performed during the first half of the year when
(political) uncertainty caused future growth to be heavily discounted.
This was reversed over the course of the latter part of the financial
year as discerning investors paid up for quality growth companies
once again. It has been a welcomed contrast to the prior year where
uncertainty ran high, whilst returns remained low.
Across the globe we have seen increasing business and consumer
confidence aided by falling unemployment that has extended to
strong corporate earnings across many regions. The continued
market performance has been in spite of a highly divisive US
President and rising anti-European union parties. One thing can be
said for the financial year of 2017, political risks were a major theme
driving international markets. The US saw the success of the anti-
establishment candidate, Donald Trump become President. In
Europe we have seen a defeated coup d’tat in Turkey; the French
centralist, Emmanuel Macron, gained victory over the populist far-
right Le Pen; the Dutch rejected their populist candidate; a failed
constitutional reform in Italy; and the surprise of Prime Minister
Theresa May losing her parliamentary majority.
Turning to the key regions of our largest underlying investments, the
US and UK, we saw US markets reach record highs as Wall Street was
revitalised on the back of President Trump’s Tax Reform agenda,
higher infrastructure spending and less regulation. In addition, the
US Fed has taken a more aggressive monetary policy stance raising
interest rates three times over the period. The S&P500 Index gained
15.5% in local currency terms. During the year, the UK triggered the
start of their Brexit negotiation process and we can be sure there will
be further surprises as negotiations continue. Whilst British markets
continued to feel the weight of Brexit and the ongoing uncertainty,
the markets were largely supported by strong corporate earnings and
some M&A activity. The FTSE100 increased by 12.4% in British
pounds.
Domestically, the Australian Dollars resilience has been surprising,
particularly given the lacklustre performance of the Australian
economy and a rising US interest rate. As a result, the strengthening
of the Australian dollar reduced the returns to Australian investors.
In this regard, the Australian dollar increased by 3.2% over the year,
closing at 76.9 US cents while the Australian dollar increased by 5.4%
over the year against the British Pound, closing at 59.0 British pence.
5. SIGNIFICANT CHANGES IN THE STATE OF
AFFAIRS
Significant changes in the state of affairs of the Company during the
financial year were as follows:
The value of the portfolio before fees and taxes increased by
13.6%.
Murray d’Almeida was appointed a Director on 10 October 2016.
Global Masters Fund owns 16.2% of Athelney Trust Plc.
Global Masters Fund Limited
8
6. MATTERS SUBSEQUENT TO THE END OF THE
FINANCIAL YEAR
No other matter or circumstance not otherwise dealt with in the
Director’s Report or Financial Report, which has arisen since the end
of the year that has significantly affected, or may significantly affect
the operations of the Company, the results of those operations or the
state of affairs of the Company in future financial years.
7. LIKELY DEVELOPMENTS AND EXPECTED
RESULTS OF OPERATIONS
There are no planned changes to principal activities. Any general
decline in equity markets may have an adverse effect on results in
future years.
8. ENVIRONMENTAL ISSUES
The Company’s operations are not regulated by any significant
environmental regulation under a law of the Commonwealth or of a
State or Territory.
9. EARNINGS PER SHARE
Based on profit after income tax.
Basic earnings per share
Diluted earnings per share
2017
Cents
0.80
0.80
2016
Cents
0.01
0.01
As a result of moving to AASB 9 Total Comprehensive Income is a
more appropriate base for detailing earnings per share.
Basic earnings per share
Diluted earnings per share
See Note 16 of the Financial Report.
2017
Cents
16.54
16.54
2016
Cents
7.50
7.50
10. COMPANY SECRETARY
Brian Jones B.Com, FCA
Brian Jones is a Chartered Accountant and a partner of Rothsay
Chartered Accountants in Sydney. He is a member of the Institute of
Chartered Accountants and is a registered tax agent. He has been
Company Secretary of Global Masters Fund Limited since 1 March
2007. He has over 36 years’ experience in the accounting and finance
industries and is currently Company Secretary of two other listed
Companies.
11. MEETINGS OF DIRECTORS
The number of Directors’ meetings attended by each of the Directors
of the Company during the financial year are:
Board
Audit and
Risk Committee
Director
J L Addison
Dr E C Pohl
P Corrigan AM
M H d’Almeida
Eligible to
attend
4
Attend
4
Eligible to
attend
4
Attend
4
4
4
3
4
4
3
4
4
3
4
4
3
12. REMUNERATION REPORT (AUDITED)
The remuneration report is set out under the following main
headings:
(A) Principles used to determine the nature and amount of
No remuneration consultants were engaged during the year.
The per annum remuneration of the Directors increased from
previous year:
remuneration
(B) Details of remuneration
Service agreements
(C)
(D) Share-based compensation
(E) Related Party Transactions
(F) Equity Instrument Disclosure relating to Key Management
Personnel
(A) Principles used to determine the nature and
amount of remuneration
Fees and payments to Directors reflect the demands which are made
on, and the responsibilities of, the Directors.
Chairman
Other Directors
$45,000
$40,000
There is no performance based remuneration for Directors.
(B) Details of remuneration
Details of the remuneration of each Director of Global Masters
Fund Limited and the executives of the Company are set out in the
following table.
DETAILS OF REMUNERATION
Short-term Benefits
Director
Year
Fees
Performance
Fees
J L Addison
Non-executive Chairman
Dr E C Pohl
Managing Director
P Corrigan AM
Non-executive Director
M d’Almeida
Non-executive Director
Total Directors Remuneration
* Inclusive of GST
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
$
46,125*
46,125
31,000*
41,000
41,000*
41,000
30,750*
-
148,875
128,125
$
-
-
-
-
-
-
-
-
Non-
monetary
Benefits
$
-
-
-
-
-
-
-
-
Post-
Employment
Super
Equity
Shares
Options
Total
$
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
$
46,125*
46,125
31,000*
41,000
41,000*
41,000
30,750*
-
148,875
128,125
(C) Service agreements
As the Company does not employ any staff, there are no employment service agreements entered into by the Company. The Company Secretary
is employed by Rothsay Chartered Accountants and the Managing Director is employed by the Investment Manager – EC Pohl & Co Pty Ltd.
(D) Share-based compensation
No share-based compensation exists.
(E) Related Party Transactions
The Investment Manager of Global Masters Fund Limited is EC Pohl & Co Pty Ltd, of which Dr Manny Pohl is a Director. Dr Pohl is also Managing
Director of Global Masters Fund Limited. The remuneration he received from the Company (GFL) is in respect of his services as Managing Director.
There have been no related party transactions during the year.
Global Masters Fund Limited
9
DIRECTORS’ REPORT (Continued)
(F) Equity Instrument Disclosure relating to Key Management Personnel
The number of shares in the Company held during the financial year by each Director of Global Masters Fund Limited, including their related
parties is set out below. There were no shares granted during the year as compensation.
2017
Balance At The Start Of
The Year
Received During The Year By
Exercise Of Rights
Other Changes During
The Year
Balance At the End
Of The Year
J L Addison
Dr E C Pohl *
P Corrigan AM
M H d’Almeida
NIL
5,000
NIL
NIL
-
-
-
-
-
-
-
-
NIL
5,000
NIL
NIL
*
In addition to the securities owned directly by Dr EC Pohl, there are 4,604,049 shares registered
in entities associated with EC Pohl & Co Pty Ltd, of which he is a Director and Shareholder.
END OF REMUNERATION REPORT (AUDITED)
13. GENERAL TRANSACTIONS
18. NON-AUDIT SERVICES
Other than the Director’s remuneration, the Company does not
directly contract with any of the Directors.
14. LOANS
There are no loans issued to any of the Directors (30 June 2016 –
Nil).
15. OPTIONS
No options have been issued during or since the financial year (30
June 2016 – Nil).
16. INSURANCE OF OFFICERS AND/OR AUDITORS
During the financial year the Company insured the Directors and
Officers against certain liabilities as permitted by the Corporations
Act 2001. The insurance policy prohibits disclosure of the nature of
the cover, the amount of the premium, the limit of liability and other
terms.
The Company has entered into an agreement for the purpose of
indemnifying Directors and Officers, to the extent permitted by law,
against any liability (including the costs and expenses of defending
actions for an actual or alleged liability) incurred in their capacity as
a Director and Officer of the Company.
The Company has not during or since the financial year indemnified
or paid any insurance premiums to indemnify the auditors.
17. PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under Section 237 of the
Corporations Act 2001 for leave to bring proceedings on behalf of the
Company, or to intervene in any proceeding to which the Company is
a party, for the purpose of taking responsibility on behalf of the
Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the
Company with leave of the Court under Section 237 of the
Corporations Act 2001.
The Company may decide to employ the auditor on assignments
additional to their statutory audit duties where the auditor’s
expertise and experience with the Company are important.
There have been no amounts paid or payable to the auditors for
non-audit services provided during the year.
The Directors have considered the position and are satisfied that
the provision of any non-audit services (if necessary in future) is
compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001. The Audit and
Risk Committee is satisfied that the provision of any non-audit
services by the auditor, would not compromise the auditor
independence requirements of the Corporations Act 2001 for the
following reasons:
All non-audit services would be reviewed by the Audit and
Risk Committee to ensure they do not impact the impartiality
and objectivity of the auditor; and
None of the services undermine the general principles
relating to auditor independence as set out in APES 110,
including reviewing or auditing the auditor’s own work, acting
in a management or a decision-making capacity for the
Company, acting as advocate for the Company or jointly
sharing economic risk and rewards.
A copy of the Auditors’ Independence Declaration as required
under section 307C of the Corporation Act 2001 is set out on page
11.
Dr Emmanuel (Manny) C Pohl
Managing Director
22 August 2017
Global Masters Fund Limited
10
AUDITOR’S INDEPENDENCE DECLARATION
Global Masters Fund Limited
11
CORPORATE GOVERNANCE STATEMENT: FOR THE YEAR ENDED 30 JUNE 2017
Recommendation 1.3: Written agreement with each Director
and Senior Executive setting out the terms of their
appointment
Compliant
Upon appointment, each Director receives a letter of appointment
which sets out the formal terms of their appointment, along with a
deed of indemnity, insurance and access.
Recommendation 1.4: The Company Secretary of a listed
entity should be accountable directly to the Board, through
the Chair, on all matters to do with the proper functioning of
the Board
Compliant
The Company Secretary is employed by a third party as disclosed in
the Directors’ Report and is directly accountable to the Board on
matters relating to the proper functioning of the Board.
Details regarding the Company Secretary, including experience and
qualifications, are set out in the Directors’ Report.
Recommendation 1.5: Gender Diversity
Not Compliant
In respect of diversity, the Board considers that diversity includes
differences that relate to gender, age, ethnicity and cultural
background. It also includes differences in background and life
experience, communication styles, interpersonal skills, education and
problem solving skills.
The Board seeks to develop a culture of diversity whereby a mix of
skills and diverse backgrounds are employed by the Company at all
levels, through structuring the recruitment processes at all levels, so
that a diverse range of candidates are considered and there are no
excuses or unconscious biases that might discriminate against certain
candidates. However, as the Company is an externally managed
entity, this recommendation is not applicable.
Recommendations 1.6 and 1.7: Board and Senior Executive
Evaluation
Compliant
The Board is committed to formally evaluating its performance and
the performance of the Audit and Risk Committee and individual
Directors, as well as the governance processes supporting the Board.
The Board does this through an annual assessment process. Any
issues identified are addressed at subsequent Board meetings.
PRINCIPLE 2:
Structure the Board to add value
Recommendation 2.1: Establish a Nomination Committee
Non-Compliant
The Company has not established a formal Nomination Committee,
as the Board considers that, due to the scope and nature of the
Company’s activities, the whole Board should undertake the
responsibility.
This statement outlines the main corporate governance practices that
were in place for the year ended 30 June 2017. The statement
explains the extent to which the Company complies with the ASX
Corporate Governance Principles and Recommendations, including
explanations of why certain recommendations have not been
For ease of comparison with the Principles and
followed.
Recommendations,
the Company’s
compliance with each of the specific recommendations as follows.
this section summarises
PRINCIPLE 1:
Lay solid foundations for management and
oversight
Recommendation 1.1: Respective roles and responsibilities
of its Board and Management
Compliant
The Board is responsible for the overall corporate governance of the
entity and its overriding objective is to protect and increase
Shareholder value. The Board guides and monitors the business to
ensure that the Company is properly managed in the best interest of
Shareholders. The Board is accountable to its Shareholders.
It is responsible for a broad range of matters including:
monitoring the Investment Manager and the composition and
performance of the investment portfolio;
monitoring and assessing the performance of the Managing
Director;
undertaking Director nomination matters including succession
planning for the Board to ensure an appropriate mix of skills,
experience, expertise and diversity is maintained;
approving and maintaining appropriate risk management and
internal control systems to identify, assess, monitor and
manage the Company’s business risks on an ongoing basis;
overseeing the Company’s process
communications; and
for disclosure and
developing and approving appropriate Company policies,
procedures and codes of behaviour as required to maintain a
culture of integrity and a strong framework of corporate
governance.
The Board has adopted a formal Board Charter that details the
Board’s role, authority, responsibilities, membership and operations,
and is available on the Company’s website
www.globalmastersfund.com.au
The Charter sets out the matters specifically reserved for the Board
and the powers delegated to its Committees.
Recommendation 1.2:
election/re-election
Compliant
Information prior to Director
Before the Board appoints a new Director or puts forward a candidate
for election, the Board will ensure that appropriate background
checks are undertaken. Shareholders are provided with all material
information in our possession that is relevant to their decision on
whether or not to elect or re-elect a Director through a number of
channels, including via the Notice of Meeting, the Director Résumés
and other information contained in the Annual Report.
Global Masters Fund Limited
12
Recommendation 2.2: Have and disclose a Board skills matrix
Compliant
The Company’s objective is to have an appropriate mix of expertise
and experience on our Board and its Committees so that the Board
can effectively discharge its corporate governance and oversight
responsibilities. This mix is described in the Board skills matrix below.
Expertise
Financial knowledge and
experience
Legal, governance and
compliance
Commercial acumen
Risk management
Experience
Industry
Finance
Superannuation
Market
Australian Listed Securities
Geographic
Australia
Recommendation 2.3: Independent Directors
Compliant
The Board has accepted that an Independent Director is as defined in
Box 2.3 of the ASX Corporate Governance Principles and
Recommendations (3rd Edition).
Of the current Board members, Mr Jonathan Addison, Mr Patrick
Corrigan AM and Mr Murray d’Almeida are considered to be
independent Directors.
The length of service of each Director is set out in the Directors
Report.
Recommendation 2.4: A majority of the Board of a listed
entity should be independent Directors
Compliant
The structure of the Board does comply with this recommendation in
(refer
the Directors are
that a majority of
recommendation 2.3).
independent
Recommendation 2.5: The Chair of the Board of a listed
entity should be an independent Director and, in particular,
should not be the same person as the CEO of the entity
Complaint
The Company’s Chairman is Mr Jonathan Addison an independent
Director.
Recommendation 2.6: Director induction and professional
development
Compliant
New Directors are inducted into the Company’s processes and
policies in a suite of ways, including the provision of a ‘Board manual’,
interviews with senior management of the Investment Manager and
out of session meetings with other Directors. All Directors are
encouraged to undertake ongoing professional development both in
their area of technical expertise and in the skills required to
effectively execute the role of Director.
PRINCIPLE 3:
Act ethically and responsibly
Recommendation 3.1: Code of Conduct
Compliant
The Company has developed a Code of Conduct (the Code) which has
been fully endorsed by the Board and applies to all Directors and
officers. The Code is reviewed annually and updated as necessary to
ensure
it reflects the highest standards of behaviour and
professionalism and the practices necessary to maintain confidence
in the Company’s integrity. A summary of the Code is available on the
Company’s website:
www.globalmastersfund.com.au
The Code sets out the Company’s commitment to conducting its
business in accordance with all applicable laws and regulations while
demonstrating and promoting the highest ethical standards.
PRINCIPLE 4:
Safeguard integrity in corporate reporting
Recommendation 4.1: Audit Committee
Compliant
The Company has an Audit and Risk Committee which comprises
three independent Directors.
The composition of the Committee, a record of its meetings, and the
relevant experience of each member of the Committee is set out in
the Directors Report.
The Audit and Risk Committee charter is available on the Company’s
website: www.globalmastersfund.com.au
Recommendation 4.2: CEO and CFO declaration on the
financial records
Compliant
The Board has received a declaration from the CEO and CFO that the
Company’s financial records have been properly maintained and that
the financial statements comply with the appropriate accounting
standards and give a true and fair view of the financial position and
performance of the Company and that the opinion has been formed
on the basis of a sound system of risk management and internal
control which is operating effectively.
A summary of the Code is available on the Company’s website:
www.globalmastersfund.com.au
Recommendation 4.3: The external auditor should attend
the AGM and be available to answer questions from security
holders relevant to the audit
Compliant
Joe Pien, Chartered Accountant, the Company’s auditor, was
available at the most recent AGM and will be available at the next
AGM to answer questions from Shareholders. It is the policy of the
Board to always request auditor presence at AGMs.
Global Masters Fund Limited
13
CORPORATE GOVERNANCE STATEMENT: FOR THE YEAR ENDED 30 JUNE 2017 (Continued)
Recommendation 6.3: Disclose the policies and processes it
has in place to facilitate and encourage participation at
meetings of security holders
Compliant
The Company facilitates and encourages participation at meetings of
security holders by having sections of each meeting dedicated to
questions from the floor. Shareholders are given at least 30 days’
notice of security holder meetings and those that are unable to
attend in person may email or fax questions they would like
answered. The Company provides a direct voting facility to allow
security holders to vote ahead of AGMs without having to attend or
appoint a proxy.
Recommendation 6.4: Give security holders the option to
receive communications from, and send communications to,
the entity and its security registry electronically
Compliant
Quarterly reports and other information required to be sent to
Shareholders are sent by email to all persons who have requested
their name to be added to the Company’s email list. If requested, the
Company will provide general information by email, facsimile or post.
PRINCIPLE 7:
Recognise and manage risk
Recommendation 7.1: Risk Committee
Compliant
The Audit and Risk Committee monitors the Company’s business
risks.
The composition of the Committee and a record of its meetings is set
out in the Directors Report.
The Audit and Risk Committee charter is available on the Company’s
website: www.globalmastersfund.com.au
Recommendation 7.2: Annual risk management framework
review
Compliant
Each year, the Audit and Risk Committee, reviews the Company’s risk
management framework. Ad hoc reviews may also be conducted
when the Board perceives that the risk environment has shifted
significantly. A review was conducted during the year.
Recommendation 7.3: Internal audit function
Non-Compliant
The Company does not have an internal audit function as the Board
has deemed it is not necessary giving consideration to the size and
nature of the Company. Instead, the full Board through the Audit and
Risk Committee liaises closely with the Company’s external auditor to
identify potential improvements to the risk management and internal
control processes.
PRINCIPLE 5:
Make timely and balanced disclosure
Recommendation 5.1: Continuous Disclosure Policy
Compliant
The Company has a Continuous Disclosure Policy which sets out the
obligations of the Company’s Directors and officers in relation to
continuous disclosure as well as the Company’s obligations under the
Corporations Act and the ASX Listing Rules. The policy also contains
procedures for internal notification and external disclosure, as well as
procedures for promoting understanding of compliance with the
disclosure requirements and for the monitoring of Company
compliance.
The Disclosure Policy is available on the Company’s website:
www.globalmastersfund.com.au
PRINCIPLE 6:
Respect the rights of security holders
Recommendation 6.1:
A listed entity should provide
information about itself and its governance to investors via
its website
Compliant
Investors and other stakeholders can find information about the
Company on its website: www.globalmastersfund.com.au
Information on the Company’s corporate governance practices can
also be found at www.globalmastersfund.com.au
Recommendation 6.2: A listed entity should design and
implement an
investor relations program to facilitate
effective two-way communication with investors
Compliant
The Company’s Communications Policy sets out how the Company
will communicate with Shareholders.
to Shareholders
is communicated
Information
the
distribution of a quarterly report, annual and half yearly financial
reports, announcements through the ASX and the media, on the
Company’s website and through the Chairman’s address at the
Annual General Meeting.
through
If requested, the Company will provide general information by email,
facsimile or post.
Through the Company’s information email address and phone
number, and at AGMs, the Company encourages two-way
communication with Shareholders.
The Communication Policy is available on the Company’s website:
www.globalmastersfund.com.au
Global Masters Fund Limited
14
Recommendation 7.4: Exposure to economic,
environmental and social sustainability risks
Compliant
The Board monitors the business risk and guides the affairs of the
Company in the discharge of its stewardship responsibilities.
The Board meeting agendas and reports advise the Board of current
and forthcoming issues relevant to the Company’s operations and
performance. The Board reviews the investment portfolio at their
regular meetings.
Management has designed and implemented a risk management and
internal control system through a Risk Management Framework. The
Framework is monitored by the Audit and Risk Committee with
regular reporting to Committee meetings. The Framework is
reviewed yearly by the Committee.
The identified risks are grouped within the Framework under the
following headings:
Strategic
Operational
External Macro
Environmental
PRINCIPLE 8:
Remunerate fairly and responsibly
Recommendation 8.1: Remuneration Committee
Non-Compliant
Given the size of the Company and the nature of its activities, these
functions are undertaken by the Board.
Recommendation 8.2: Disclose its policies and practices
regarding the remuneration of non-executive Directors and
the remuneration of executive Directors and other senior
executives
Compliant
The maximum amount of Directors’ fees is fixed by Shareholders at
the Annual General Meeting and can only be varied by Shareholders
in a similar manner. In determining the allocation of fees, the Board
takes into account the time demands on each Director, together with
the responsibilities undertaken by them and market practices of
similar sized businesses in the Listed Investment Company sector.
It is the policy of the Board not to issue Directors incentive shares or
options.
The details of the remuneration received by Directors in the
2016/2017 year are included in the Remuneration Report contained
within the Directors’ Report.
Recommendation 8.3: Equity-based remuneration
Non-Compliant
As the Company does not have an equity-based remuneration
scheme, Recommendation 8.3 is not applicable.
Global Masters Fund Limited
15
FINANCIAL REPORT
CONTENTS OF FINANCIAL REPORT
Page
Financial Report
Statement of Profit or Loss and Other Comprehensive
Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Investments
Corporate Directory
17
18
19
20
21
30
31
34
34
35
This financial report covers Global Masters Fund Limited as an individual entity.
There are no controlled entities.
Global Masters Fund Limited is a company limited by shares, incorporated and
domiciled in Australia. Its registered office and principal place of business is:
Global Masters Fund Limited
Level 1
12 O’Connell Street
SYDNEY NSW 2000
The financial report was authorised for issue by the Directors on 22 August 2017.
A description of the nature of the entity’s operations and its principal activities is
included in the Operating and Financial Review.
Through the use of the internet, we have ensured that our corporate reporting is
timely, complete and available globally at minimum cost to the Company. All media
releases, financial reports and other information are available from the Company at
the above address or from our website:
www.globalmastersfund.com.au
Global Masters Fund Limited
16
GLOBAL MASTERS FUND LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
Revenue
Other expenses
Profit before income tax
Income tax credit
Profit for the year
Notes
2017
$
2016
$
5
6
7
369,162
250,384
(300,895)
(249,339)
68,267
-
68,267
1,045
-
1,045
Other Comprehensive Income, net of income tax
Items that will be reclassified subsequently to profit & loss when specific conditions are met
Changes in fair value of available-for-sale Financial Assets
Total Comprehensive Income for the year
1,350,649
642,079
1,418,916
643,124
Earnings per share:
Basic earnings per share
Diluted earnings per share
Comprehensive Income:
Earnings per share
Cents
Cents
0.80
0.80
0.01
0.01
16
16
16
16.54
7.50
The accompanying Notes form part of these Financial Statements.
Global Masters Fund Limited
17
FINANCIAL REPORT
GLOBAL MASTERS FUND LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents
Trade and Other Receivables
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Financial Assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and Other Payables
TOTAL CURRENT LIABILIITES
NON-CURRENT LIABILITIES
Deferred Tax Liabilities
TOTAL NON CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued Capital
Reserves
Accumulated losses
TOTAL EQUITY
.
Notes
2017
$
2016
$
8
9
11
10
12
13
14
15
1,012,558
2,364
26,846
1,041,768
56,302
1,787
6,575
64,664
15,824,624
15,824,624
16,866,392
15,078,717
15,078,717
15,143,381
28,513
28,513
13,407
13,407
1,912,801
1,912,801
1,941,314
1,623,812
1,623,812
1,637,219
14,925,078
13,506,162
8,609,085
6,814,525
(498,532)
8,609,085
5,463,876
(566,799)
14,925,078
13,506,162
The accompanying Notes form part of these Financial Statements.
Global Masters Fund Limited
18
GLOBAL MASTERS FUND LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
2016
Balance at 1 July 2015
Profit for the Year
Other comprehensive income
- Changes in fair value of available-for-sale financial assets
Issued
Securities
$
8,609,085
-
-
Accumulated
Losses
$
Reserves
Total
$
$
(567,844)
4,821,797
12,863,038
1,045
-
1,045
-
642,079
642,079
Balance at 30 June 2016
8,609,085
(566,799)
5,463,876
13,506,162
2017
Balance at 1 July 2016
Profit for the Year
Other comprehensive income
- Changes in fair value of available-for-sale financial assets
Issued
Securities
$
8,609,085
-
-
Accumulated
Losses
$
Reserves
Total
$
$
(566,799)
5,463,876
13,506,162
68,267
-
68,267
-
1,350,649
6,814,525
1,350,649
14,925,078
Balance at 30 June 2017
8,609,085
(498,532)
The accompanying Notes form part of these Financial Statements.
Global Masters Fund Limited
19
FINANCIAL REPORT
GLOBAL MASTERS FUND LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Interest, distributions and dividends received
Payments to suppliers and employees
Net cash provided by/(used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of Flagship Investments Limited
Proceeds from sale of Berkshire Hathaway
Proceeds from sale of Colonial First State Units
Purchase of shares in Athelney Trust Plc
Notes
2017
$
2016
$
189,894
(308,941)
(119,047)
194,918)
(247,622)
(52,704)
23
1,296,539
-
1,513
(222,749)
1,075,303
56,926
93,799
2,149
(97,634)
55,240
2,536
53,766
56,302
Net increase/(decrease) in cash and cash equivalents held
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at end of year
956,256
56,302
8
1,012,558
The accompanying Notes form part of these Financial Statements.
Global Masters Fund Limited
20
Deferred tax assets and liabilities are measured at the tax rates that
are expected to apply to the period when the asset is realised or the
liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the reporting period.
Deferred tax assets are recognised for all deductible temporary
differences and unused tax losses to the extent that it is probable that
taxable profit will be available against which the deductible
temporary differences and losses can be utilised.
Current and deferred tax is recognised as income or an expense and
included in profit or loss for the period except where the tax arises
from a transaction which is recognised in other comprehensive
income or equity, in which case the tax is recognised in other
comprehensive income or equity respectively.
(c) Goods and Services Tax (GST)
Revenue, expenses and assets are recognised net of the amount of
goods and services tax (GST), except where the amount of GST
incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payable are stated inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is
included as part of receivables or payables in the statement of
financial position.
Cash flows in the statement of cash flows are included on a gross basis
and the GST component of cash flows arising from investing and
financing activities which is recoverable from, or payable to, the
taxation authority is classified as operating cash flows.
(d) Cash and Cash Equivalents
Cash and cash equivalents comprises cash on hand, demand deposits
and short-term investments which are readily convertible to known
amounts of cash and which are subject to an insignificant risk of
change in value.
(e) Financial Instruments
Financial Assets At Fair Value Through Profit Or Loss
Financial assets at fair value through Profit or Loss are Financial
Instruments convertible in to Equity Instruments. A financial asset is
classified in this category if it is so designated by management and
within the requirement of AASB 9 Financial Instruments. Realised and
unrealised gains and losses arising from changes in the fair value of
these assets are included in the profit or loss in the period in which
they arise.
GLOBAL MASTERS FUND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
The functional and presentation currency of Global Masters Fund
Limited is Australian dollars. Its shares are publicly traded on the
Australian Stock Exchange (“ASX”).
1. BASIS OF PREPARATION
The financial statements are general purpose financial statements
that have been prepared
in accordance with the Australian
Accounting Standards and the Corporations Act 2001.
These financial statements and associated notes comply with
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board.
The financial statements have been prepared on an accruals basis and
are based on historical costs modified, where applicable, by the
measurement at fair value of selected non-current assets, financial
assets and financial liabilities.
Significant accounting policies adopted in the preparation of these
financial statements are presented below and are consistent with
prior reporting periods unless otherwise stated.
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(a) Revenue and Other Income
Revenue is recognised when the amount of the revenue can be
measured reliably, it is probable that economic benefits associated
with the transaction will flow to the Company and specific criteria
relating to the type of revenue as noted below, has been satisfied.
Revenue is measured at the fair value of the consideration received
or receivable and is presented net of returns, discounts and rebates.
All revenue is stated net of the amount of goods and services tax
(GST).
Interest Revenue
Interest is recognised using the effective interest method
Dividend Revenue
Dividends are recognised when the entity’s right to receive payment
is established.
(b)
Income Tax
The income tax expense recognised in the statement of profit or loss
and other comprehensive income comprises of current income tax
expense plus deferred tax expense.
Current tax is the amount of income taxes payable (recoverable) in
respect of the taxable profit (loss) for the year and is measured at the
amount expected to be paid to (recovered from) the taxation
authorities, using the tax rates and laws that have been enacted or
substantively enacted by the end of the reporting period. Current tax
liabilities (assets) are measured at the amounts expected to be paid
to (recovered from) the relevant taxation authority.
Global Masters Fund Limited
21
FINANCIAL REPORT
GLOBAL MASTERS FUND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(e) Financial Instruments (continued)
Financial Assets At Fair Value Through Other Comprehensive
Income
The Company is a long-term investor in equity instruments. Under
AASB 9, these investments are classified as fair value through Other
Comprehensive Income. After initial recognition at fair value (being
cost), the Company has elected to present in Other Comprehensive
Income changes in fair value of equity instruments investments.
Unrealised gains and losses on investments are recognised in the
Asset Revaluation Reserve until the investment is sold or otherwise
disposed of, at which time the cumulative gain or loss is transferred
to the Profit and Loss Statement.
Available-For-Sale Financial Assets
These investments are measured at fair value.
Unrealised gains and losses arising from changes in the fair value of
these assets are taken directly to Other Comprehensive Income and
accumulated in Equity.
When these financial Assets are sold, the accumulated fair value
adjustments are reclassified from Equity to the profit or loss as gains
and losses on sale.
Available-For-Sale Financial assets are assessed at each reporting date
to determine whether there is an objective evidence that it is
impaired. In the case of Available-For-Sale Financial Instruments, a
significant or prolonged decline in the value of the instruments below
cost is considered to be evidence of whether or not impairment has
arisen.
Any cumulative impairment loss in respect of an Available-For-Sale
Financial Asset previously recognised in equity is reclassified to profit
or loss.
An impairment loss is reversed if the reversal can be related
objectively to an event occurring after the impairment loss was
recognised. For Available-For-Sale Financial Assets that are debt
securities, the reversal is recognised in profit or loss. For equity
securities, the reversal is recognised in Other Comprehensive Income.
Loans and Receivables
Loans and receivables are recognised initially at fair value and
subsequently measured at amortised cost, less provision for doubtful
debts. Trades receivables are due for settlement no more than 30
days from the date of recognition.
Collectability of loans and receivables is reviewed on an ongoing basis.
Debts which are known to be uncollectible are written off. A provision
for impairment of trade receivables is established when there is
objective evidence that the Company will not be able to collect all
amounts due according to the original terms of the receivables.
Global Masters Fund Limited
22
Significant financial difficulties of the debtor, probability that the
debtor will enter bankruptcy or financial reorganisation, and default
or delinquency in payments (more than 30 days overdue) are
considered indicators that the trade receivable is impaired.
The amount of the provision is the different between the asset's
carrying amount and the present value of estimated future cash flows,
discounted at the original effective interest rate. Cash flows relating
to short-term receivables are not discounted if the effect of
discounting is immaterial. The amount of the provision is recognised
in the profit or loss in other expenses.
Fair Value Estimation
The fair value of financial instruments traded in active markets (such
as publicly traded derivatives and securities) is based on quoted
market prices at the Statement of Financial Position date. The quoted
market price used for financial assets held by the Company is the
current bid price. The appropriate quoted market price for financial
liabilities is the current bid price.
The nominal value less estimated credit adjustments of trade
receivables and payables are assumed to approximate their fair
values. The fair value of financial liabilities for disclosure purposes is
estimated by discounting the future contractual cash flows at the
current market interest rate that is available to the Company for
similar financial instruments.
(f) Trade And Other Payables
Liabilities for trade payables and other amounts are carried at cost
which is the fair value of the consideration to be paid in the future
for goods and services received, whether or not billed to the
Company.
(g) Provisions
Provisions are recognised when the Company has a legal or
constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will result and that
outflow can be reliably measured.
Provisions for Dividends
Provision is made for the amount of any dividend declared, being
appropriately authorised and no longer at the discretion of the entity,
on or before the end of the reporting period but not distributed at the
end of the reporting period.
(h) Share Capital
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of ordinary shares and share options which
vest immediately are recognised as a deduction from equity, net of
any tax effects
GLOBAL MASTERS FUND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(i) New Accounting Standards and Interpretations
4. OPERATING SEGMENTS
Segment Information
The Company operates in the investment industry. Its core business
focuses on investing in International equities to achieve medium to
long-term capital growth and income.
Operating segments have been determined on the basis of reports
reviewed by the Managing Director. The Managing Director is
considered to be the chief operating decision maker of the Company.
The Managing Director considers the business from both a product
and geographic perspective and assesses performance and allocates
resources on this basis. The Managing Director considers the business
to consist of just one reportable segment.
The AASB has issued new and amended Accounting Standards and
Interpretations that have mandatory application dates for future
reporting periods. The following table summarises those future
requirements, and their impact on the Company where the standard
is relevant:
AASB 9 Financial Instruments and amending standards
AASB 2010-7 / AASB 2012-6
Effective Date
1 July 2018
Changes to the classification and
measurement requirements for financial
assets and financial liabilities
The Company complies with AASB 9
3. CRITICAL ACCOUNTING ESTIMATES AND
JUDGEMENTS
(a) Key Estimates
There are no key assumptions or sources of estimation uncertainty
that have a risk of causing material adjustment to the carrying
amounts of certain assets and liabilities within the next annual
reporting period as investments are carried at their market value.
(b) Key Judgements
The preparation of financial reports in conformity with Australian
Account Standards require the use of certain critical accounting
estimates. This requires the Board to exercise their judgement in the
process of applying the Company's accounting policies.
The carrying amount of certain assets and liabilities are often
determined based on estimates and assumptions of future events. In
accordance with AASB 112 Income Taxes, deferred tax liabilities and
deferred tax assets have been recognised for Capital Gains Tax (CGT)
on the unrealised gains/losses in the investment portfolio at current
tax rates.
As the Directors do not intend to dispose of the portfolio, the tax
liability/benefit may not be crystallised at the amount disclosed in
Note: 13. In addition, the tax liability/benefit that arises on the
disposal of these securities may be impacted by changes in tax
legislation relating to treatment of capital gains and the rate of
taxation applicable to such gains/losses at the time of disposal.
The Company has an investment process which is anticipated will
deliver medium to long-term capital growth - minimum investment
period is three to five years.
The deferred tax asset has been carried forward as it believed that
this process will deliver growth over this period to utilise the deferred
tax asset.
The Company does not hold any securities for short term trading
purposes. Therefore the investment portfolio is classified as Financial
Assets at fair value through Other Comprehensive Income.
Global Masters Fund Limited
23
FINANCIAL REPORT
GLOBAL MASTERS FUND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
5. REVENUE AND OTHER INCOME
Dividends Received
Distributions Received
Interest Received
Gain on sale of Flagship Investments
Gain on Sale of Berkshire Hathaway
Realised Foreign Exchange Loss
Gain on Sale of Colonial Units
6. OTHER EXPENSES
Auditors Remuneration
ASX and Share Registry costs
Administration Costs
7.
INCOME TAX EXPENSE
(a) Reconciliation of income tax to accounting profit
Accounting profit before tax
Prima facie tax payable on ordinary activities before income tax rate at 27.5% (2016 - 30%)
Income tax expense
Tax losses not recognised
Tax expense shown in profit and loss statement
(b) Amounts recognised directly in Other Comprehensive Income
Aggregate current and deferred tax arising in the reporting period and not recognised in
Profit or Loss and Other Comprehensive Income, but directly debited or credited in Other
Comprehensive Income.
Amount before Tax
Tax Expense at 27.5% (2016: 30%)
Amount Net of Tax
8. CASH AND CASH EQUIVALENTS
Cash at bank and on hand
Short-term deposits
Balance as per Statement of Cash Flows
Reconciliation of cash
2017
$
188,063
1
1,830
178,108
-
-
1,160
369,162
10,250
22,231
268,414
300,895
68,267
18,773
18,773
(18,773)
-
2016
$
194,749
74
95
2,510
55,398
(3,178)
736
250,384
10,250
17,695
231,645
249,340
1,045
313
313
(313)
-
1,862,964
(512,315)
1,350,649
917,255
(275,177)
642,079
1,012,092
466
1,012,558
55,684
618
56,302
Cash and Cash Equivalents reported in the Statement of Cash Flows are reconciled
to the equivalent items in the Statement of Financial Position as follows:
Cash and Cash Equivalents
1,012,558
56,302
Global Masters Fund Limited
24
GLOBAL MASTERS FUND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
9. TRADE AND OTHER RECEIVABLES
CURRENT
GST receivable
Total current trade and other receivables
10. OTHER FINANCIAL ASSETS
(a) Available-for-sale Financial Assets comprise
Listed investments, at fair value
Shares in other Corporations
Unlisted investments, at fair value
Total Available-for-sale Financial Assets
11. OTHER ASSETS
CURRENT
Prepayments
12. TRADE AND OTHER PAYABLES
CURRENT
Trade payables
Accrued expenses
13. NON CURRENT LIABILITIES
2017
$
2,364
2,364
2016
$
1,787
1,787
15,824,624
15,824,624
15,078,174
15,078,174
-
-
543
543
15,824,624
15,078,717
26,846
26,846
6,575
6,575
330
28,183
28,513
1,931
11,476
13,407
Deferred tax liabilities
Comprises tax on unrealised gains on currency exchange and market fluctuations of
listed investments.
1,912,801
1,623,812
14. ISSUED CAPITAL
8,578,596 (2016: 8,578,596 ) Ordinary Shares
8,609,085
8,609,085
15. RESERVES
Revaluation Reserve
The investment revaluation reserve is used to accumulate unrealised capital profits and
losses. The reserve can only be used in limited circumstances for payment of dividends.
Global Masters Fund Limited
25
FINANCIAL REPORT
GLOBAL MASTERS FUND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
2017
$
2016
$
16. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit attributable to owners of the company by
the weighted average number of ordinary shares outstanding during the year.
Basic earnings per share is calculated by dividing the profit attributable to owners of the company by the
weighted average number of ordinary shares outstanding during the year.
Net gain (loss) used in calculating basic and diluted earnings per share
Total comprehensive income used in calculating total comprehensive income per share
Weighted average number of ordinary shares on issue used in the calculation of basic earnings per share
Total ordinary shares on issue
68,267
1,350,649
8,578,596
8,578,596
1,045
643,124
8,578,596
8,578,596
(a) Weighted average number of ordinary shares outstanding during the year used in
calculating basic EPS
8,578,596
8,578,596
Basis earnings per share (cents per share)
Diluted earnings per share (cents per share)
Total Comprehensive Income per share (cents per share)
Cents
0.80
0.80
16.54
Cents
0.01
0.01
7.50
17. FINANCIAL RISK MANAGEMENT
The Company is exposed to a variety of financial risks through its use of financial instruments.
The Company‘s overall risk management plan seeks to minimise potential adverse effects due to
the unpredictability of financial markets.
The Company does not speculate in financial assets.
The most significant financial risks to which the Company is exposed to are described below:
Specific risks
Liquidity risk
Credit risk
Market risk - currency risk, interest rate risk and price risk
Financial instruments used
The principal categories of financial instrument used by the Company are:
Trade receivables
Cash at bank
Investments in listed shares
Trade and other payables
Global Masters Fund Limited
26
GLOBAL MASTERS FUND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
17. FINANCIAL RISK MANAGEMENT (continued)
(a)
Interest Rate Risk
The Company's exposure to interest rate risk, which is the risk that a
financial instruments value will fluctuate as a result of changes in
market interest rates and the effective weighted average interest
rates on classes of financial assets and financial liabilities, is as
follows:
Effective Interest Rate
Financial Assets
Cash and cash equivalents
6 Months or less
Financial Assets
Cash and cash equivalents
Total Financial Assets
2017
%
2016
%
0.35
0.17
2017
$
1,012,558
1,012,558
2016
$
56,302
56,302
financial assets and
All other
liabilities are non-interest
bearing - apart from investment in Colonial Wholesale Funds which
on average earned 2.5%
(b) Currency Risk
The Company‘s investment portfolio includes investments in USA and
UK, cash on deposit and interest receivable denominated in US
dollars and Pounds Sterling. As such, the Company's balance sheet
can be affected significantly by movements in exchange rates. The
Company's current policy is not to hedge its investment portfolio.
The carrying value of these foreign currency denominated assets at
balance date was as follows:
Carrying Amount
Cash and cash equivalents
Investments
Total
(c) Credit risk
2017
AUD $
2016
AUD $
316
13,799,326
563
11,943,844
13,799,642
11,944,407
The Company is not a trading entity. The maximum exposure to credit
risk at balance date in relation to each class of financial assets
(excluding investments) is the carrying amount of those assets as
indicated in the balance sheet. The Company has no commercial
debtors and receivables are due from reputable companies listed on
the world's stock exchange or major financial banking institutions.
With respect to credit risk on cash and investment, the Company's
exposure to credit risk arises from default of the counter party, with
a maximum exposure equal to the carrying amount of those
investments. The Company's business activities do not necessitate
the requirement for collateral.
.
Global Masters Fund Limited
27
(d) Net Fair Value
The following methods and assumptions are used to determine the
net fair values of financial assets and liabilities:
Cash, cash equivalents and short-term investments:
The carrying amount approximates fair value because of their short
term to maturity.
Trade receivables and payables:
The carrying amount approximates fair value as the time to receipt or
payment is usually less than 30 days.
Listed shares:
The current quoted market bid price approximates fair value and the
carrying amount.
The carrying value of all the financial assets and liabilities of the
Company as disclosed in the balance sheet and notes to the financial
statements is the same as the net fair value.
(e) Sensitivity Analysis
in
illustrates sensitivities to the Company’s
The following table
exposures to changes
interest rates, exchange rates and
commodity and equity process. The table indicates the impact on
how profit and equity values reported at balance date would have
in the relevant risk variable that
been affected by changes
management considers to be reasonably possible. These sensitivities
assume that the movement in a particular variable is independent of
other variables.
At 30 June 2017, the effect on profit and equity as a result of changes
in the interest rate, with all other variables remaining constant would
be as follows:
6 Months or less
Change in profit
+/- 2% in interest rates
Change in equity
+/- 5% in $A/US$
2017
$
2016
$
+/- 1,165
+/- 1,000
+/- 736,833
+/- 675,308
+/- 10% in listed investments
+/- 1,582,463
+/- 1,507,871
18. SEGMENT INFORMATION
Company is domiciled and incorporated in Australia.
The Company's principal activity is investment in quoted equities,
Berkshire Hathaway Inc listed on the New York Stock Exchange,
Athelney Trust Plc listed on the London Stock Exchange and Flagship
Investments Limited listed on the Australian Securities Exchange.
FINANCIAL REPORT
GLOBAL MASTERS FUND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
19. KEY MANAGEMENT PERSONNEL DISCLOSURES
(a) Details of Key Management Personnel (KMP) for all of the financial year unless otherwise shown were
Directors
JL Addison
Dr EC Pohl
P Corrigan AM
M H d’Almeida
Chairman (Non-executive), appointed 19 April 2005
Managing Director (Executive), appointed 19 April 2005
Director (Non-executive), appointed 29 November 2006
Director (Non-executive), appointed 10 October 2016
(b) Other Key Management Personnel Transactions
Compensation Policy
The Board of Directors of the Company is responsible for determining and reviewing compensation arrangements for the key
management personnel. The Board assesses the appropriateness of the nature and amount of emoluments of such officers on a
periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder
benefit.
Executive Personnel
The Managing Director Dr Manny Pohl is an Executive Director, but only gets remunerated as a Director, as has been the case in prior
years. The Company’s Non-executive Directors are Jon Addison, Pat Corrigan and Murray d’Almeida.
Non-Executive Director Compensation
In accordance with the Company’s Constitution and the ASX Listing Rules, the aggregate amount of remuneration payable to the
Non-executive Directors (including the Managing Director) in any year is determined from time to time by Shareholders in a General
Meeting. The last determination was at a General Meeting on 10 May 2006 when Shareholders fixed an aggregate amount not
exceeding $150,000.
During the year, Murray d’Almeida was appointed a Director of the Company. The Board will seek Shareholders’ approval to increase
the maximum amount of salaries for Directors to $200,000.
Within the limit of aggregate amount determined by the Shareholders, the Board determines the remuneration for Non-executive
Directors. The remuneration arrangements for the Non-executive Directors are reviewed annually by the Board.
The Board assess the appropriateness of the remuneration for Non-executive Directors, having regard to market practice, the duties
and accountability of the Non-executive Directors and the objective of maintaining a balanced Board which has appropriate expertise
and experience, at a reasonable cost to the Company.
The compensation of Non-executive Directors (including the Managing Director) for the year ending 30 June 2017 is shown in the
table of detailed remuneration disclosures, provided in section 12 (A) to (F) of the Remuneration Report on pages 9 and 10.
20. AUDITORS REMUNERATION
Remuneration of the Auditor of the Company, Joseph Pien
- Audit of the Half-Year and Annual Financial Report of the Company
Total
2017
$
2016
$
10,250
10,250
10,250
10,250
21. CONTINGENCIES
In the opinion of the Directors, the Company did not have any contingencies at 30 June 2017 (30 June 2016: None).
Global Masters Fund Limited
28
GLOBAL MASTERS FUND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
22. RELATED PARTIES
There were no related party transactions during the year, other than shown below:
Brian Jones (Company Secretary) is a partner of Rothsay Chartered Accountants, which provides
company secretarial, accounting and taxation services to the Company at normal commercial rates.
Fees Charged
Total
23. CASH FLOW INFORMATION
(a) Reconciliation of result for the year to cash flows from operating activities
Profit for the year
Cash flows excluded from profit attributable to operating activities
Non-cash flows in profit
- net (gain)/loss on disposal of investments
- losses on foreign exchange
Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries:
- (increase)/decrease in prepayments
- (increase)/decrease in other assets
- increase/(decrease) in trade and other payables
Cash flow from operations
24. EVENTS OCCURRING AFTER THE REPORTING DATE
No matters or circumstances have arisen since the end of the financial year which significantly
affected or may significantly affect the operations of the Company, the results of those operations,
or the state of affairs of the Company in future financial years.
2017
$
2016
$
65,190
65,190
64,332
64,332
68,267
1,045
(179,268)
(2,305)
(58,644)
3,178
(20,270)
(576)
15,105
1,252
(466)
931
(119,047)
(52,704)
Global Masters Fund Limited
29
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
(a)
the Financial Statements and Notes set out on pages 16 to 29 are in accordance with the Corporations Act 2001, including:
(i)
(ii)
complying with Accounting Standards, which, as stated in accounting policy Note 1 to the financial statements,
constitutes compliance with International Financial Reporting Standards (IFRS); and
give a true and fair view of the financial position as at 30 June 2017 and of the performance for the year ended on
that date; and
in the Directors’ opinion,
(b)
(c)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable; and
the remuneration disclosures set out on pages 9 and 10 of the Directors’ Report (as part of the audited remuneration
report) for the year ended 30 June 2017 comply with section 300A of the Corporations Act 2001.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A
of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors and is signed for and on behalf of the Directors by:
Dr Emmanuel (Manny) C Pohl
Managing Director
22 August 2017
Global Masters Fund Limited
30
INDEPENDENT AUDITOR’S REPORT
GLOBAL MASTERS FUND LIMITED ABN 84 109 047 618
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GLOBAL MASTERS FUND LIMITED
Report on the Audit of the Financial Report
Opinion
I have audited the financial report of Global Masters Fund Limited (the Company), which comprises the statement
of financial position as at 30 June 2017, the statement of comprehensive income, statement of changes in equity
and statement of cash flows for the year then ended, and notes to the financial statements, including a summary
of significant accounting policies, and the directors' declaration.
In my opinion,
(a)
the accompanying financial report of Global Masters Fund Limited, is in accordance with the
Corporations Act 2001, including:
(i)
giving a true and fair view of the Company's financial position as at 30 June 2017 and of its
financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
(b)
the financial report also complies with International Financial Reporting Standards as disclosed in Note 1.
Basis for Opinion
I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under those standards
are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of my report. I
am independent of the Company in accordance with the auditor independence requirements of the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code
of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. I
have also fulfilled our other ethical responsibilities in accordance with the Code.
I confirm that the independence declaration required by the Corporations Act 2001, which has been given to the
directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of my audit of the financial
report as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.
Global Masters Fund Limited
31
Matter
Available for Sale Financial Assets. Refer note 1(e) and 10
This matter has been recognised due to its materiality, representing 94% of total assets.
Equity instruments are classified at fair value through other Comprehensive income. Initial recognition is at cost
with the Company electing to present in Other Comprehensive Income changes in the fair value of the
investments.
Audit procedures adopted, included: Confirmation from third parties of securities held by the Company at balance
date, Agreeing the valuation of investments and reported dividend income with relevant stock exchanges and
Company announcements. Reconciling the movement in fair value for the year and reviewing the Company’s
disclosure in the financial report to ensure compliance with applicable Australian Accounting Standard AASB 9.
Audit objectives surrounding this matter were achieved.
Information Other than the Financial Report and Auditor's Report Thereon
The directors are responsible for the other information. The other information comprises the information included
in the Company's annual report for the year ended 30 June 2017, but does not include the financial report and my
auditor's report thereon.
My opinion on the financial report does not cover the other information and accordingly I do not express any form
of assurance conclusion thereon.
In connection with my audit of the financial report, my responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or my knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work I have performed, I conclude that there is a material misstatement of this other information,
I am required to report that fact. I have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company's ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and
maintain professional scepticism throughout the audit. I also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Global Masters Fund Limited
32
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company's ability to continue as a going concern. If I conclude that a
material uncertainty exists, I am required to draw attention in my auditor's report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However,
future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
I communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
I also provide the directors with a statement that I have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on my independence, and where applicable, related safeguards
From the matters communicated with the directors, I determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore the key audit matters. I describe these
matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, I determine that a matter should not be communicated in my report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
I have audited the Remuneration Report included in page 9 of the directors' report for the year ended 30 June
2017. The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. My responsibility is to express an opinion on
the Remuneration Report, based on my audit conducted in accordance with Australian Auditing Standards.
Auditor’s Opinion
In my opinion, the Remuneration Report of Global Masters Fund Limited, for the year ended 30 June 2017,
complies with section 300A of the Corporations Act 2001.
Joseph Pien
Joe Pien Chartered Accountants, Suite 503, Level 5, 276 Pitt Street Sydney NSW 2000
Dated this 22nd day of August, 2017
Global Masters Fund Limited
33
SHAREHOLDER INFORMATION
The Shareholder information set out below was applicable as at 25 July 2017.
1. DISTRIBUTION OF SECURITIES:
3. SUBSTANTIAL SHAREHOLDINGS
Distributions
1
1,001
5,001
10,001
100,001
to
to
to
to
1,000
5,000
10,000
100,000
and over
Total
Holdings of less than a marketable parcel
2. TWENTY LARGEST SHAREHOLDERS
Shareholders
Ordinary
Shares
%
No. of
Shareholders
103
169
80
69
7
428
11
The names of the Shareholders who have notified the
Company of a substantial holding in accordance with
section 671B of the Corporations Act 2001 are:
Substantial Shareholder
Dr E C Pohl *
Number
of Shares
% of
Total
4,604,049
54.1
* Has the power to control voting and/or the disposal of
securities in accordance with a Power Of Attorney in relation
to 4,604,049 shares.
CITICORP NOMINEES PTY LIMITED
4,604,049
53.7%
4. VOTING RIGHTS
BOND STREET CUSTODIANS LIMITED
BOND STREET CUSTODIANS LIMITED
SECURITIES & ESTATES PTY LTD
ROSETTA PTY LTD
MR PETER LEECE
PETER I H WONG PTY LTD
EMSDALE HOLDINGS PTY LTD
J BARLOW CONSULTANTS PTY LTD
MRS SYLVIA MARIA VALMADRE
RITCHIE FAMILY SUPER PTY LTD
CPAC HOLDINGS PTY LIMITED
MR WILLIAM PAUL CHUN TIE &
MS ORLEENA MOO
353,227
4.1%
180,000
2.1%
140,519
1.6%
127,760
120,737
1.5%
1.4%
120,000
1.4%
87,470
85,854
60,000
1.0%
1.0%
0.7%
50,000
0.6%
50,000
0.6%
48,623
0.6%
RBC INVESTOR SERVICES AUSTRALIA
NOMINEES PTY LTD <13314 MACINTOSH>
46,737
0.5%
MRS SALLY-ANNE ARCHARD
MR MICHAEL MUCCI
MR IAN LESLIE POLLARD
MR PETER CLARENCE DAVIS &
MRS BIRGIT CHRISTA DAVIS
SUE COLLINS HOLDING PTY LTD
39,768
0.5%
36,500
36,000
0.4%
0.4%
30,000
0.4%
30,000
0.4%
Total 6,283,457
73.2%
On a show of hands every Shareholder present in person or
by proxy shall have one vote and upon a poll each share
shall have one vote.
INVESTMENTS
(1) HOLDINGS OF SECURITIES AT 30 JUNE 2017
Individual investments at 30 June 2017 are listed below.
The list should not, however, be used to evaluate portfolio
performance or to determine the net asset backing per
share at other dates. Individual holdings in the portfolio
may change during the course of the year.
ORDINARY SHARES
Shares
Market Value
$
Berkshire Hathaway Inc
A Class Shares
Berkshire Hathaway Inc
B Class Shares
27
8,940,328
15,300
3,368,904
Athelney Unit Trust plc
349,640
1,490,094
Flagship Investments
Limited
TOTAL
1,310,872
2,025,297
15,824,623
(2) TRANSACTIONS AND BROKERAGE
There were 17 (2016: 5) transactions in securities during the
year on which brokerage of $13,887 (2016: $750) was paid.
Global Masters Fund Limited
34
CORPORATE DIRECTORY
GLOBAL MASTERS FUND LIMITED
ABN 84 109 047 618
REGISTERED IN NEW SOUTH WALES
12 MAY 2004.
BOARD OF DIRECTORS
Jonathan L Addison
Non-Executive Chairman
Dr Emmanuel (Manny) C Pohl
Managing Director
Patrick Corrigan AM
Non-Executive Director
Murray H d’Almeida
Non-Executive Director
Jason Pohl
Alternate Director
COMPANY SECRETARY
Brian E Jones
Rothsay Chartered Accountants
Level 1
12 O’Connell Street
SYDNEY NSW 2000
PRINCIPAL PLACE OF BUSINESS
Level 1
12 O’Connell Street
SYDNEY NSW 2000
MANAGER
EC Pohl & Co Pty Ltd
ACN 154 399 916
Level 12
Corporate Centre One
2 Corporate Court
BUNDALL QLD 4217
Tel:
Fax:
+61 (0) 7 5644 4400
+61 (0) 7 5574 1457
SOLICITORS
McCullough Robertson Lawyers
Level 32 MLC Centre
19 Martin Place
SYDNEY NSW 2000
AUDITORS
Joe Pien Chartered Accountants
Suite 503
Level 5
276 Pitt Street
SYDNEY NSW 2000
SHARE REGISTRY
Boardroom Pty Limited
GPO Box 3993
SYDNEY NSW 2001
Toll Free:
International: +61 (0) 2 9290 9600
+61 (0) 0 9279 0664
Fax:
1300 737 760
REGISTERED OFFICE
Level 1
12 O’Connell Street
SYDNEY NSW 2000
WEBSITE ADDRESS
www.globalmastersfund.com.au
Global Masters Fund Limited
ABN 84 109 047 618
Tel: 1300 552 660 (from within Australia)
Int: +61 2 8815 5400
Fax: + 61 2 8815 5401
Email: info@globalmastersfund.com.au
Internet: www.globalmastersfund.com.au
Level 1, 12 O’Connell Street Sydney NSW 2000 Australia
PO Box 542 Sydney NSW 2001 Australia