GFL Environmental
Annual Report 2021

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Annual Report 2021 Looking beyond the Horizon 1 Global Masters Fund Limited Contents FINANCIAL YEAR END 30 June 2021 Level 12, Corporate Centre One ASX code: GFL ANNUAL GENERAL MEETING The Annual General Meeting of Global Masters Fund Limited: WILL BE HELD AT: The office of EC Pohl & Co 2 Corporate Court Bundall QLD 4217 11.30am (QLD Time) TIME: DATE: Thursday 18 November 2021 INVESTING IN GLOBAL MASTERS FUND LIMITED Investors can purchase shares in Global Masters Fund Limited through the Australian Securities Exchange. Global Masters Fund Limited ABN 84 109 047 618 Registered in NSW 12 May 2004 5 6 11 12 14 29 30 34 35 38 Chairman’s Report Director’s Report Auditor’s Independence Declaration Corporate Governance Statement Financial Report Directors’ Declaration Independent Auditor’s Report Shareholder Information Investments Corporate Directory Global Masters Fund Limited Global Masters Fund Limited 2 2 GLOBAL MASTERS FUND LIMITED DIRECTORS (from left to right) Dr Emmanuel (Manny) Pohl AM, Murray d’Almeida and Patrick Corrigan AM Contents FINANCIAL YEAR END 30 June 2021 ANNUAL GENERAL MEETING The Annual General Meeting of Global Masters Fund Limited: WILL BE HELD AT: The office of EC Pohl & Co Level 12, Corporate Centre One 2 Corporate Court Bundall QLD 4217 TIME: 11.30am (QLD Time) DATE: Thursday 18 November 2021 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 5 6 11 12 14 29 30 34 35 38 Chairman’s Report Director’s Report Auditor’s Independence Declaration Corporate Governance Statement Financial Report Directors’ Declaration Independent Auditor’s Report Shareholder Information Investments Corporate Directory Global Masters Fund Limited 2 3 Global Masters Fund Limited GLOBAL MASTERS FUND LIMITED DIRECTORS (from left to right) Dr Emmanuel (Manny) Pohl AM, Murray d’Almeida and Patrick Corrigan AM HIGHLIGHTS FOR 2021 CHAIRMAN’S REPORT Highlights for the year ending June 2021  UK Portfolio Performance (in GBP terms) was a positive 35.2%, Dear Shareholder, outperforming the FTSE which increased by 14.1%.  Core investment in Berkshire Hathaway increased in value by 44.0%  The Net Tangible Assets (NTA) value of the Company per share increased by 37.8% before recognising the net deferred tax liability. I am pleased to present the Annual Chairman’s Report of Global Masters Fund Limited for the 2020/21 financial year. over the long term. Portfolio Performance Portfolio^ ASX All Ordinaries Index MSCI Index (AUD) MSCI Index (USD) ^ Source: EC Pohl & Co Pty Ltd 1 year 3 years p.a. 5 years p.a. 10 years p.a. 40.4% 26.4% 26.2% 37.0% 13.6% 6.4% 12.6% 13.0% 14.0% 7.4% 12.6% 12.8% 15.0% 5.0% 12.5% 8.5% Since Inception (1 May 2006) p.a. 8.6% 2.5% 5.4% 5.3% 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. In November 2017 the Company raised additional capital through a rights issue and deployed that capital in an actively managed portfolio predominately focused in the UK. The active portfolio provides investment diversity and meets a growing demand for active management to drive out-performance. The UK portfolio is managed by EC Pohl & Co Pty Ltd which has a highly regarded funds management investment team. The composition and performance of the overall investment portfolio is monitored by the Board of Directors, which comprises business people with many years of experience in business, investment and funds management. OBJECTIVES The investment objectives of Global Masters Fund Limited are:   To preserve and enhance the NTA backing per share after allowing for inflation. To achieve medium to long-term capital growth and income through investing in listed international companies; and Reduced share investment risk through a diversified investment portfolio; INVESTOR BENEFITS The benefits for investors in Global Masters Fund Limited are:    No entry or exit charges made by the Company; and  Professional and disciplined management of an investment portfolio; Easy access to information via the Company’s website www.globalmastersfund.com.au. INVESTMENT MANAGER The management of the Company’s UK investment portfolio is undertaken by EC Pohl & Co Pty Ltd, which also provides administration support. Dr Manny Pohl AM is the Managing Director and major Shareholder of EC Pohl & Co Pty Ltd. Information on the Investment Manager is available from www.ecpohl.com. ENVIRONMENT, SOCIAL, GOVERNANCE A business can only maintain a sustainable competitive advantage if it adequately respects all stakeholders in the business and environment in which it operates. Companies which are not engaged in sustainable practices, will not be able to generate above average economic returns throughout their life cycle. To this end, the Manager’s investment process scrutinises companies to see if they have the appropriate, and sensible Governance structures in place as well as incorporating sustainable practices into their day to day operations. Companies that don’t meet standards of respect and integrity with regard to compensation structures, internal controls, accounting treatment, rules, relationships, systems and process throughout the organisation - are not included in the portfolio. Global Masters Fund Limited Global Masters Fund Limited 4 4 Global Masters Fund Limited 5 an investment in GFL will provide investors with decent long term capital growth and we encourage Shareholders to invest with us In saying this, we do maintain a program to build awareness of our Company and stimulate demand at a share trading level. This activity aims to provide a fair price for both incoming and outgoing Shareholders. During the year we continued our social media campaigns and extended the reach of our monthly newsletter. We have also invested in the SEO of our website and look forward to some planned investor presentations now that face-to-face conferences are being organised. Our key focus remains on the investment performance of our portfolio, because fundamentally a discount to NTA will not be a detractor for Shareholders if the degree of the discount remains consistent while the portfolio continues to grow. We find that the issue with discussing discounts is that it detracts from the conversation about performance and it is the view of the Board that long term performance will ultimately provide the best result for our Shareholders. THE BOARD I wish to record my appreciation for my fellow Board members for their support and input throughout the past year. In particular, I would like to thank Patrick Corrigan AM, who will not be standing for re-election at the upcoming AGM. Patrick has been a Director of GFL since 2006 and, given his extensive business background, has played a vital part in steering the successful strategy of the Company. He has been a valuable member of the Board, a consummate professional and a good friend. We wish him all the best in his future endeavours. I would like to welcome Angela Obree, who joined the Board as an Alternate Director in March 2021 and who will replace Patrick in November 2021. Angela brings a diverse commercial background and key governance skills which will be invaluable to the Board. I would also like to pass on my thanks and gratitude to Brian Jones who resigned as Company Secretary in July 2021. Brian has supported the Company for 14 years in the capacity of Company Secretary and has also served as Chief Financial Officer. His efficient maintenance of our Company has been greatly appreciated. Finally, the Board would like to thank all Shareholders for their continued support and we warmly welcome all new Shareholders who joined the Company over the financial year. THE YEAR IN REVIEW It is remarkable to consider the current market position against the outlook from 12 months ago. Prior to July 2020, we witnessed an unprecedented market decline against the backdrop of a world-wide pandemic. The future prospects of the economy, at home and abroad, relied heavily on development and rollout of vaccines and the ongoing coordinated stimulus from the governments and the central banks. Understandably, health officials were nervous, businesses were defensive, consumers were cautious and we all braced ourselves for an unknown future. In twelve months there has been tremendous progress in the rollout of COVID vaccines, many nations hardest hit by lockdowns are easing restrictions, key financial markets have performed strongly and governments are committing to packages designed to revive and boost economies. However we are not out of the woods yet, the new delta strain provides warning that we have not yet ‘conquered’ the virus and concerns about inflation could mean a change in tact from central banks. Coming to our core investments, Berkshire Hathway has performed exceptionally well through FY2021 compared to FY2020, the share price of BRK:A stock in local currency terms increased by 56.6% (last year decreased by 16.0%) and BRK:B increased by 55.7% (last year decreased by 16.3%), the flow-on effect to the GFL portfolio is significant, the value of our holding has increased by AUD $6,334,473. After the May 2021 AGM of Berkshire Hathaway, Warren Buffet answered one of the recurring questions in the minds of Berkshire Shareholders – who is next in line? His answer: “the directors are in agreement that if something were to happen to me tonight, it would be Greg (Greg Abel – Vice Chair of Non-Insurance Business) who’d take over tomorrow morning”. The nomination of his successor in such an offhand way suggests that it is a business continuity plan only and that the legendary investor will continue doing what he does for as long as possible. The actively managed UK portfolio has continued to perform well. Portfolio performance for the twelve months to June 2021 was positive 35.2% compared to the FTSE which increased 14.1%. The performance of the year extends the since inception performance to 15.9% versus the FTSE which declined by 1.4%, this is an incredibly pleasing result and verifies the disciplined application of the Manager’s investment process. As a combined result of the Berkshire and UK Portfolio performance the GFL share price has increased 46.6% from June 2020 to June 2021. This represents good performance off a relatively low base, the important figure for the Board is the long term annualised share price growth which is 5.9% compared to the ASX All Ordinaries Index which has grown 2.5% per annum. SHAREHOLDERS Yours sincerely The Board continues to receive enquiry regarding the share price discount to NTA. I understand the concerns of Shareholders who Murray d’Almeida see the discount and are concerned about their investment exit Chairman strategy. Based on the growth highlighted above we believe that Highlights for the year ending June 2021 outperforming the FTSE which increased by 14.1%.  Core investment in Berkshire Hathaway increased in value by 44.0%  The Net Tangible Assets (NTA) value of the Company per share increased by 37.8% before recognising the net deferred tax liability. Portfolio Performance Portfolio^ ASX All Ordinaries Index MSCI Index (AUD) MSCI Index (USD) ^ Source: EC Pohl & Co Pty Ltd 1 year 3 5 10 Since Inception years p.a. years p.a. years p.a. (1 May 2006) 40.4% 26.4% 26.2% 37.0% 13.6% 6.4% 12.6% 13.0% 14.0% 7.4% 12.6% 12.8% 15.0% 5.0% 12.5% 8.5% p.a. 8.6% 2.5% 5.4% 5.3% 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. In November 2017 the Company raised additional capital through a rights issue and deployed that capital in an actively managed portfolio predominately focused in the UK. The active portfolio provides investment diversity and meets a growing demand for active management to drive out-performance. The UK portfolio is managed by EC Pohl & Co Pty Ltd which has a highly regarded funds management investment team. The composition and performance of the overall investment portfolio is monitored by the Board of Directors, which comprises business people with many years of experience in business, investment and funds management. 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; 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 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 UK investment portfolio is undertaken by EC Pohl & Co Pty Ltd, which also provides administration support. Dr Manny Pohl AM is the Managing Director and major Shareholder of EC Pohl & Co Pty Ltd. Information on the Investment Manager is available from www.ecpohl.com. ENVIRONMENT, SOCIAL, GOVERNANCE A business can only maintain a sustainable competitive advantage if it adequately respects all stakeholders in the business and environment in which it operates. Companies which are not engaged in sustainable practices, will not be able to generate above average economic returns throughout their life cycle. To this end, the Manager’s investment process scrutinises companies to see if they have the appropriate, and sensible Governance structures in place as well as incorporating sustainable practices into their day to day operations. Companies that don’t meet standards of respect and integrity with regard to compensation structures, internal controls, accounting treatment, rules, relationships, systems and process throughout the organisation - are not included in the portfolio. HIGHLIGHTS FOR 2021 CHAIRMAN’S REPORT  UK Portfolio Performance (in GBP terms) was a positive 35.2%, Dear Shareholder, I am pleased to present the Annual Chairman’s Report of Global Masters Fund Limited for the 2020/21 financial year. THE YEAR IN REVIEW It is remarkable to consider the current market position against the outlook from 12 months ago. Prior to July 2020, we witnessed an unprecedented market decline against the backdrop of a world-wide pandemic. The future prospects of the economy, at home and abroad, relied heavily on development and rollout of vaccines and the ongoing coordinated stimulus from the governments and the central banks. Understandably, health officials were nervous, businesses were defensive, consumers were cautious and we all braced ourselves for an unknown future. In twelve months there has been tremendous progress in the rollout of COVID vaccines, many nations hardest hit by lockdowns are easing restrictions, key financial markets have performed strongly and governments are committing to packages designed to revive and boost economies. However we are not out of the woods yet, the new delta strain provides warning that we have not yet ‘conquered’ the virus and concerns about inflation could mean a change in tact from central banks. Coming to our core investments, Berkshire Hathway has performed exceptionally well through FY2021 compared to FY2020, the share price of BRK:A stock in local currency terms increased by 56.6% (last year decreased by 16.0%) and BRK:B increased by 55.7% (last year decreased by 16.3%), the flow-on effect to the GFL portfolio is significant, the value of our holding has increased by AUD $6,334,473. After the May 2021 AGM of Berkshire Hathaway, Warren Buffet answered one of the recurring questions in the minds of Berkshire Shareholders – who is next in line? His answer: “the directors are in agreement that if something were to happen to me tonight, it would be Greg (Greg Abel – Vice Chair of Non-Insurance Business) who’d take over tomorrow morning”. The nomination of his successor in such an offhand way suggests that it is a business continuity plan only and that the legendary investor will continue doing what he does for as long as possible. The actively managed UK portfolio has continued to perform well. Portfolio performance for the twelve months to June 2021 was positive 35.2% compared to the FTSE which increased 14.1%. The performance of the year extends the since inception performance to 15.9% versus the FTSE which declined by 1.4%, this is an incredibly pleasing result and verifies the disciplined application of the Manager’s investment process. an investment in GFL will provide investors with decent long term capital growth and we encourage Shareholders to invest with us over the long term. In saying this, we do maintain a program to build awareness of our Company and stimulate demand at a share trading level. This activity aims to provide a fair price for both incoming and outgoing Shareholders. During the year we continued our social media campaigns and extended the reach of our monthly newsletter. We have also invested in the SEO of our website and look forward to some planned investor presentations now that face-to-face conferences are being organised. Our key focus remains on the investment performance of our portfolio, because fundamentally a discount to NTA will not be a detractor for Shareholders if the degree of the discount remains consistent while the portfolio continues to grow. We find that the issue with discussing discounts is that it detracts from the conversation about performance and it is the view of the Board that long term performance will ultimately provide the best result for our Shareholders. THE BOARD I wish to record my appreciation for my fellow Board members for their support and input throughout the past year. In particular, I would like to thank Patrick Corrigan AM, who will not be standing for re-election at the upcoming AGM. Patrick has been a Director of GFL since 2006 and, given his extensive business background, has played a vital part in steering the successful strategy of the Company. He has been a valuable member of the Board, a consummate professional and a good friend. We wish him all the best in his future endeavours. I would like to welcome Angela Obree, who joined the Board as an Alternate Director in March 2021 and who will replace Patrick in November 2021. Angela brings a diverse commercial background and key governance skills which will be invaluable to the Board. I would also like to pass on my thanks and gratitude to Brian Jones who resigned as Company Secretary in July 2021. Brian has supported the Company for 14 years in the capacity of Company Secretary and has also served as Chief Financial Officer. His efficient maintenance of our Company has been greatly appreciated. Finally, the Board would like to thank all Shareholders for their continued support and we warmly welcome all new Shareholders who joined the Company over the financial year. SHAREHOLDERS Yours sincerely As a combined result of the Berkshire and UK Portfolio performance the GFL share price has increased 46.6% from June 2020 to June 2021. This represents good performance off a relatively low base, the important figure for the Board is the long term annualised share price growth which is 5.9% compared to the ASX All Ordinaries Index which has grown 2.5% per annum. The Board continues to receive enquiry regarding the share price discount to NTA. I understand the concerns of Shareholders who see the discount and are concerned about their investment exit strategy. Based on the growth highlighted above we believe that Murray d’Almeida Chairman Global Masters Fund Limited 4 Global Masters Fund Limited 5 5 Global Masters Fund Limited DIRECTORS' REPORT Your Directors present their report on Global Masters Fund Limited for the financial year ended 30 June 2021. 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: M d’Almeida, Dr E Pohl AM, P Corrigan AM, J Addison until 30 October 2020, J Pohl is an Alternate Director to Dr E Pohl AM and A Obree was appointed an Alternate Director to P Corrigan AM on 11 March 2021. 2. INFORMATION ON DIRECTORS Murray H d’Almeida FAICD Dr Emmanuel (Manny) C Pohl AM B.Sc (Eng), MBA, DBA, FAICD, MSAFAA, F Fin Chairman, Non-Executive Director Managing Director Patrick Corrigan AM HonD (Bond University) Non-Executive Director Jason C Pohl B.Com, LLB, MBA Alternate Director Angela Obree B.Compt, MBA, MAICD Alternate Director Experience and expertise Director since 3 November 2016 Chairman since 9 November 2018. Over 37 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 ECP Emerging Growth Limited Director of Triple Energy Limited Deputy Chancellor Southern Cross University Chairman of Board of Trustees of Currumbin Wildlife Foundation Member of Gold Coast Light Rail Business Advisory Board Chairman of Zooz Pty Ltd Former Listed Company directorships in last 3 years Chairman IncentiaPay Limited (Sept 2019) Interest in Shares 2,578 indirect Experience and expertise Managing Director since the inception of the Company. Extensive experience in the funds management industry. Other current directorships Managing Director of Flagship Investments Limited Managing Director of Athelney Trust Plc Chairman of EC Pohl & Co Pty Ltd Chairman of ECP Asset Management Pty Ltd Chairman and 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: 6,250 Indirect: 5,755,061 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. Experience and expertise Director since 29 November 2006. Extensive experience in accounting, financial management and other commercial acumen, including investments. Chairman of an international freight forwarding company for numerous Other current directorships Emeritus Chairman of Gold Coast Regional Chairman of Qantas Art Scholarship Director of Aboriginal Benefits Foundation years. Art Gallery Committee Limited Canberra Former Listed Company directorships in last 3 years None Interest in Shares 1,000 Experience and expertise Experience and expertise Appointed an Alternate Director to Appointed an Alternate Director to Dr Manny Pohl on 16 June 2016. Patrick Corrigan AM since 11 March 2021. Jason has eight years of professional Angela has almost 25 years’ experience in experience in fundamental bottom-up management consulting in the UK, South 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. Africa, Ireland and Germany. She is a highly experienced commercial mediator, negotiation expert, and corporate crisis leader. Other current directorships Director of Congrua Limited Alternate Director of Flagship Investments Limited. Interest in Shares Nil Former Listed Company directorships in last 3 years None Interest in Shares 1,000 Director of National Portrait Gallery in Other current directorships Former Listed Company directorships Director of The Tabu Vodka Co Pty Ltd Alternate Director of Athelney Trust Plc in last 3 years None Global Masters Fund Limited Global Masters Fund Limited 6 6 Global Masters Fund Limited 7 DIRECTORS' REPORT 1. DIRECTORS Your Directors present their report on Global Masters Fund Limited for the financial year ended 30 June 2021. 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: M d’Almeida, Dr E Pohl AM, P Corrigan AM, J Addison until 30 October 2020, J Pohl is an Alternate Director to Dr E Pohl AM and A Obree was appointed an Alternate Director to P Corrigan AM on 11 March 2021. 2. INFORMATION ON DIRECTORS Murray H d’Almeida FAICD Dr Emmanuel (Manny) C Pohl AM B.Sc (Eng), MBA, DBA, FAICD, MSAFAA, F Fin Chairman, Non-Executive Director Managing Director Experience and expertise Director since 3 November 2016 Chairman since 9 November 2018. Over 37 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 ECP Emerging Growth Limited Director of Triple Energy Limited Deputy Chancellor Southern Cross University Chairman of Board of Trustees of Currumbin Wildlife Foundation Member of Gold Coast Light Rail Business Advisory Board Chairman of Zooz Pty Ltd Former Listed Company directorships in last 3 years Chairman IncentiaPay Limited (Sept 2019) Interest in Shares 2,578 indirect Experience and expertise Managing Director since the inception of the Extensive experience in the funds management Company. industry. Other current directorships Managing Director of Flagship Investments Limited Managing Director of Athelney Trust Plc Chairman of EC Pohl & Co Pty Ltd Chairman of ECP Asset Management Pty Ltd Chairman and 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: 6,250 Indirect: 5,755,061 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. Patrick Corrigan AM HonD (Bond University) Non-Executive Director Jason C Pohl B.Com, LLB, MBA Alternate Director Angela Obree B.Compt, MBA, MAICD Alternate Director Experience and expertise Director since 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 None Interest in Shares 1,000 Experience and expertise Appointed an Alternate Director to Dr Manny Pohl on 16 June 2016. Experience and expertise Appointed an Alternate Director to Patrick Corrigan AM since 11 March 2021. Jason has eight 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. Angela has almost 25 years’ experience in management consulting in the UK, South Africa, Ireland and Germany. She is a highly experienced commercial mediator, negotiation expert, and corporate crisis leader. Other current directorships Director of Congrua Limited Alternate Director of Flagship Investments Limited. Other current directorships Director of The Tabu Vodka Co Pty Ltd Alternate Director of Athelney Trust Plc Former Listed Company directorships in last 3 years None Interest in Shares Nil Former Listed Company directorships in last 3 years None Interest in Shares 1,000 Global Masters Fund Limited 6 Global Masters Fund Limited 7 7 Global Masters Fund Limited DIRECTORS’ REPORT (Continued) 3. PRINCIPAL ACTIVITIES The principal activity of the Company is investing in Berkshire Hathaway Inc on NYSE and a diversified global portfolio of investments. 4. REVIEW OF OPERATIONS At 30 June 2021, the Net Assets of the Company had increased by 6,237,153 (29.9%) over the twelve-month period. Investments performed very well over the year in local currency terms: Berkshire Hathaway (A&B) share price increased by 56%, Flagship Investments share price increased by 33% and the UK managed portfolio performance was positive 35%, while the US currency weakened over the year by 8.6% which diminished some of the Berkshire gains. Net profit which includes the realised and unrealised gains on the UK portfolio increased by $866,215 on the prior year due to the performance noted above. The performance fee payable reduced by $100,602 as the out-performance of the FTSE reduced, in FY2021 Total outperformance was 21.1% Comprehensive Income increased by $7,919,627 due to the market movement in the long term investment holdings particularly the recovery in Berkshire Hathaway. it was 29.2%. in FY2020 The majority of GFL’s investments are passive and the performance rests with the investee Managers and overarching market conditions. The performance of the actively managed UK portfolio is a direct result of the investment decisions of GFL’s manager, EC Pohl & Co Pty Ltd. The investment strategy employed centres on the view that the economics of business drives long-term investment returns and investing in high quality business franchises that have the ability to generate predictable, above-average economic returns will produce superior investment performance. 5. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS During the year, the company sold its shares in Athelney Trust and expanded its global exposure with an investment in an unlisted unit trust. There were no other significant changes in the state of affairs of the Company during the financial year. 6. MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR No other matter or circumstance not otherwise dealt with in the Directors’ 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 DEVLOPMENTS AND EXPECTED RESULTS FROM OPERATIONS There are no planned changes to the principle 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 2021 Cents 8.72 8.72 2020 Cents 0.64 0.64 its The Company records fair value movement for some of investments in Other Comprehensive Income, therefore Total Comprehensive Income is a more appropriate base for detailing earnings per share. 2021 Cents 58.17 2020 Cents (15.69) Comprehensive earnings per share See Note 16 of the Financial Report. 10. COMPANY SECRETARY Brian Jones B.Com, FCA Brian Jones 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. Brian resigned as Company Secretary on 1 July 2021 and has been replaced by Scott Barrett effective from that date. 11. MEETINGS OF DIRECTORS The number of Directors’ meetings attended by each of the Directors of the Company during the financial year were: BOARD MEETINGS Director Eligible to attend Attend M H d’Almeida E C Pohl AM P Corrigan AM J L Addison 4 4 4 2 4 4 4 2 12. REMUNERATION REPORT (AUDITED) The remuneration report is set out under the following main No remuneration consultants were engaged during the year. (A) Principles used to determine the nature and amount of from the previous year: headings: remuneration (B) Details of remuneration (C) Service agreements (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 following table. amount of remuneration Fees and payments to Directors reflect the demands which are made on, and the responsibilities of, the Directors. DETAILS OF REMUNERATION The per annum remuneration of the Directors remains unchanged  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 Director Year Fees Performance Non- Super Shares Options Total Short-term Benefits Post- Employment Equity Fees monetary Benefits 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 $ 46,125 46,125 40,000 40,000 13,629 41,000 41,000 41,000 140,754 168,125 $ - - - - - - - - $ - - - - - - - - $ - - - - - - - - $ $ - - - - - - - - - - - - - - - - $ 46,125 46,125 40,000 40,000 13,629 41,000 41,000 41,000 140,754 168,125 M d’Almeida * Non-executive Chairman Dr E C Pohl AM Managing Director J L Addison * Non-executive Director P Corrigan AM * Non-executive Director Total Directors Remuneration * Inclusive of non-claimable GST amount (C) Service agreements (D) Share-based compensation No share-based compensation exists. (E) Related Party Transactions As the Company does not employ any staff, there are no employment service agreements entered into by the Company. The Company Secretary is a self-employed Contractor and the Managing Director is employed by the Investment Manager – EC Pohl & Co Pty Ltd. The following transactions occurred with other related parties: Expenses paid or payable by the Company to: A Performance Fee and Management Fee was payable in accordance with the Management Services Agreement as detailed in Note 22. Dr E C Pohl has an interest in the transaction as during the year Dr E C Pohl was a Director of – – – – EC Pohl & Co Pty Ltd EC Pohl & Co Pty Ltd for Performance Fee EC Pohl & Co Pty Ltd for Management Fee. All related party transactions are made on an arm’s length basis using the standard terms and conditions. 2021 $ 2020 $ 193,310 293,912 57,738 51,608 Global Masters Fund Limited Global Masters Fund Limited 8 8 Global Masters Fund Limited 9 DIRECTORS’ REPORT (Continued) 3. PRINCIPAL ACTIVITIES The principal activity of the Company is investing in Berkshire Hathaway Inc on NYSE and a diversified global portfolio of investments. 4. REVIEW OF OPERATIONS At 30 June 2021, the Net Assets of the Company had increased by 6,237,153 (29.9%) over the twelve-month period. Investments performed very well over the year in local currency terms: Berkshire Hathaway (A&B) share price increased by 56%, Flagship Investments share price increased by 33% and the UK managed portfolio performance was positive 35%, while the US currency weakened over the year by 8.6% which diminished some of the Berkshire gains. Net profit which includes the realised and unrealised gains on the UK portfolio increased by $866,215 on the prior year due to the performance noted above. The performance fee payable reduced by outperformance was 21.1% in FY2020 it was 29.2%. Total Comprehensive Income increased by $7,919,627 due to the market movement in the long term investment holdings particularly the recovery in Berkshire Hathaway. The majority of GFL’s investments are passive and the performance rests with the investee Managers and overarching market conditions. The performance of the actively managed UK portfolio is a direct result of the investment decisions of GFL’s manager, EC Pohl & Co Pty Ltd. The investment strategy employed centres on the view that the economics of business drives long-term investment returns and investing in high quality business franchises that have the ability to generate predictable, above-average economic returns will produce superior investment performance. 5. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS During the year, the company sold its shares in Athelney Trust and expanded its global exposure with an investment in an unlisted unit trust. There were no other significant changes in the state of affairs of the Company during the financial year. 7. LIKELY DEVLOPMENTS AND EXPECTED RESULTS FROM OPERATIONS There are no planned changes to the principle 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. Diluted earnings per share The Company records fair value movement for some of its investments in Other Comprehensive Income, therefore Total Comprehensive Income is a more appropriate base for detailing earnings per share. 2021 Cents 8.72 8.72 2020 Cents 0.64 0.64 2021 Cents 58.17 2020 Cents (15.69) Comprehensive earnings per share See Note 16 of the Financial Report. 10. COMPANY SECRETARY Brian Jones B.Com, FCA Brian Jones 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. Brian resigned as Company Secretary on 1 July 2021 and has been replaced by Scott Barrett effective from that date. $100,602 as the out-performance of the FTSE reduced, in FY2021 Basic earnings per share 6. MATTERS SUBSEQUENT TO THE END OF THE 11. MEETINGS OF DIRECTORS FINANCIAL YEAR The number of Directors’ meetings attended by each of the Directors No other matter or circumstance not otherwise dealt with in the of the Company during the financial year were: Directors’ 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. BOARD MEETINGS Director Eligible to attend Attend M H d’Almeida E C Pohl AM P Corrigan AM J L Addison 4 4 4 2 4 4 4 2 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 remains unchanged from the 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 M d’Almeida * Non-executive Chairman Dr E C Pohl AM Managing Director J L Addison * Non-executive Director P Corrigan AM * Non-executive Director Total Directors Remuneration 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 $ 46,125 46,125 40,000 40,000 13,629 41,000 41,000 41,000 140,754 168,125 $ - - - - - - - - * Inclusive of non-claimable GST amount Non- monetary Benefits $ - - - - - - - - Post- Employment Super Equity Shares Options Total $ - - - - - - - - $ - - - - - - - - $ - - - - - - - - $ 46,125 46,125 40,000 40,000 13,629 41,000 41,000 41,000 140,754 168,125 (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 a self-employed Contractor 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 following transactions occurred with other related parties: Expenses paid or payable by the Company to: – – – – A Performance Fee and Management Fee was payable in accordance with the Management Services Agreement as detailed in Note 22. Dr E C Pohl has an interest in the transaction as during the year Dr E C Pohl was a Director of EC Pohl & Co Pty Ltd EC Pohl & Co Pty Ltd for Performance Fee EC Pohl & Co Pty Ltd for Management Fee. All related party transactions are made on an arm’s length basis using the standard terms and conditions. 2021 $ 2020 $ 193,310 57,738 293,912 51,608 Global Masters Fund Limited 8 Global Masters Fund Limited 9 9 Global Masters Fund Limited DIRECTORS’ REPORT (Continued) AUDITOR’S INDEPENDENCE DECLARATION (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. DIRECTOR 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 M H d’Almeida E C Pohl AM * P Corrigan AM J L Addison 2,578 6,250 1,000 NIL - - - - - - - - 2,578 6,250 1,000 NIL * In addition to the securities owned directly by Dr EC Pohl, there are 5,755,061 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 Directors’ 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 2020 – Nil). 15. OPTIONS No options have been issued during or since the financial year (30 June 2020 – 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 Auditor’s 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 25 August 2021 Global Masters Fund Limited Global Masters Fund Limited 10 10 Global Masters Fund Limited 11 DIRECTORS’ REPORT (Continued) AUDITOR’S INDEPENDENCE DECLARATION (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. DIRECTOR Balance At The Start Of Received During The Year By Other Changes During Balance At the End The Year Exercise Of Rights The Year Of The Year M H d’Almeida E C Pohl AM * P Corrigan AM J L Addison 2,578 6,250 1,000 NIL - - - - - - - - 2,578 6,250 1,000 NIL * In addition to the securities owned directly by Dr EC Pohl, there are 5,755,061 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 Directors’ remuneration, the Company does not The Company may decide to employ the auditor on assignments directly contract with any of the Directors. 14. LOANS Nil). 15. OPTIONS June 2020 – Nil). There are no loans issued to any of the Directors (30 June 2020 – No options have been issued during or since the financial year (30 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. 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 Auditor’s 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 25 August 2021 Global Masters Fund Limited 10 Global Masters Fund Limited 11 11 Global Masters Fund Limited CORPORATE GOVERNANCE STATEMENT: FOR THE YEAR ENDED 30 JUNE 2021 decision: The Directors of Global Masters Fund Limited are committed to excellence in corporate governance. By adopting the ASX Corporate Governance Council’s Corporate Governance Principles and incorporating industry best practice the Company has built a framework that supports our business performance and enhances transparency and accountability which ultimately protects the interests of Shareholders. Below is a list of the Company’s Corporate Governance Framework documents set out against the relevant ASX Governance Principles and Recommendations, the details of which are available on the Company’s Website. The full Corporate Governance Statement for the year ending 30 June 2021 is also available on the website, at http://www.globalmastersfund.com.au/corporategovernance/ ASX GOVERNANCE PRINCIPLES RELEVANT DOCUMENT/INFORMATION Principle 1: Lay solid foundation for management oversight Board Charter Whistleblower Policy Principle 2: Structure the Board to be effective and add value Board Charter Diversity Policy Principle 3: Instil a culture of acting lawfully, ethically and responsibly Principle 4: Safeguard the integrity of corporate reports Principle 5: Make timely and balanced disclosure Values Statement Code of Conduct Share Trading Policy Board Charter Code of Conduct Disclosure Policy Principle 6: Respect the rights of security holders Communications Policy Privacy Policy Principle 7: Recognise and manage risk Principle 8: Remunerate fairly and responsibly Board Charter Board Charter The Corporate Governance Statement explains the extent to which the Company complies with the ASX Corporate Governance Principles and Recommendations including how the policies above support Corporate Governance in the Company. Under the “if not, why not” approach the Board provide explanations as to why a particular recommendation is not appropriate to its circumstances. For clarity, the Board would like to highlight below the recommendations that have not been adopted and the reasons behind the ASX GOVERNANCE PRINCIPLES COMPLIANCE STATEMENT Note 2.1: The Company has not established a formal Nomination Committee, as the Board considers that, due to the specific scope and nature of the Company’s activities, the whole Board should undertake the responsibility. Recommendation 4.1: Establish an Audit Committee Note 4.1: The Company has not established an Audit Committee. The full Board is responsible for appointment and removal of the external auditor and the rotation of the Principle 1: oversight Lay solid foundations for management and Principle 2: Structure the Board to add value Recommendation 2.1: Establish a Nomination Committee Compliant Compliant Principle 3: Act ethically and responsibly Compliant Principle 4: Safeguard integrity in corporate reporting Compliant audit partner. Compliant Principle 5: Make timely and balanced disclosure Principle 6: Respect the rights of security-holders Compliant Principle 7: Recognise and manage risk Compliant Recommendation 7.1: Risk Committee Recommendation 7.3: Internal audit function responsibly Recommendation 8.1 : Remuneration Committee Recommendation 8.3: Equity-based remuneration Note 7.1: The Board dissolved the Audit & Risk Committee, citing that the benefits of a separate committee were not being realised due to the composition of the committee and overlap with the Board. The Board has reviewed the Board Charter and its processes to ensure risk management is thoroughly managed. Note 7.3: The Company does not have an internal audit function given the size and nature of the Company. Instead, the Board liaises closely with the Company’s external auditor to identify potential improvements to the financial risk management and internal control process. The Board also interrogates the internal compliance and external audit of the Manager. Note 8.1: The Company does not have a Remuneration Committee, instead the full Board develops the remuneration policy balancing the need to attract high quality Directors, establishing appropriate incentives and commercial control of expenses. The establishment of a committee would not provide further efficiency to the operation of the Board given the Board size. Not Applicable The Company does not have an equity-based remuneration scheme and does not intend to establish one. Recommendation 8.3 is not applicable. Principle 8: Remunerate fairly and Compliant Global Masters Fund Limited Global Masters Fund Limited 12 12 Global Masters Fund Limited 13 CORPORATE GOVERNANCE STATEMENT: FOR THE YEAR ENDED 30 JUNE 2021 The Directors of Global Masters Fund Limited are committed to excellence in corporate governance. By adopting the ASX Corporate Governance Council’s Corporate Governance Principles and incorporating industry best practice the Company has built a framework that supports our business performance and enhances transparency and accountability which ultimately protects the interests of Shareholders. Below is a list of the Company’s Corporate Governance Framework documents set out against the relevant ASX Governance Principles and Recommendations, the details of which are available on the Company’s Website. The full Corporate Governance Statement for the year ending 30 June 2021 is also available on the website, at http://www.globalmastersfund.com.au/corporategovernance/ ASX GOVERNANCE PRINCIPLES RELEVANT DOCUMENT/INFORMATION Principle 1: Lay solid foundation for management oversight Board Charter Whistleblower Policy Principle 2: Structure the Board to be effective and add value Board Charter Diversity Policy Principle 3: Instil a culture of acting lawfully, ethically and responsibly Principle 4: Safeguard the integrity of corporate reports Principle 5: Make timely and balanced disclosure Principle 7: Recognise and manage risk Principle 8: Remunerate fairly and responsibly Principle 6: Respect the rights of security holders Communications Policy Privacy Policy Values Statement Code of Conduct Share Trading Policy Board Charter Code of Conduct Disclosure Policy Board Charter Board Charter The Corporate Governance Statement explains the extent to which the Company complies with the ASX Corporate Governance Principles and Recommendations including how the policies above support Corporate Governance in the Company. Under the “if not, why not” approach the Board provide explanations as to why a particular recommendation is not appropriate to its circumstances. For clarity, the Board would like to highlight below the recommendations that have not been adopted and the reasons behind the decision: ASX GOVERNANCE PRINCIPLES COMPLIANCE STATEMENT Principle 1: Lay solid foundations for management and oversight Principle 2: Structure the Board to add value Recommendation 2.1: Establish a Nomination Committee Compliant Compliant Note 2.1: The Company has not established a formal Nomination Committee, as the Board considers that, due to the specific scope and nature of the Company’s activities, the whole Board should undertake the responsibility. Principle 3: Act ethically and responsibly Compliant Principle 4: Safeguard integrity in corporate reporting Compliant Recommendation 4.1: Establish an Audit Committee Note 4.1: The Company has not established an Audit Committee. The full Board is responsible for appointment and removal of the external auditor and the rotation of the audit partner. Principle 5: Make timely and balanced disclosure Principle 6: Respect the rights of security-holders Compliant Compliant Principle 7: Recognise and manage risk Compliant Recommendation 7.1: Risk Committee Recommendation 7.3: Internal audit function Note 7.1: The Board dissolved the Audit & Risk Committee, citing that the benefits of a separate committee were not being realised due to the composition of the committee and overlap with the Board. The Board has reviewed the Board Charter and its processes to ensure risk management is thoroughly managed. Note 7.3: The Company does not have an internal audit function given the size and nature of the Company. Instead, the Board liaises closely with the Company’s external auditor to identify potential improvements to the financial risk management and internal control process. The Board also interrogates the internal compliance and external audit of the Manager. Principle 8: Remunerate fairly and responsibly Compliant Recommendation 8.1 : Remuneration Committee Recommendation 8.3: Equity-based remuneration Note 8.1: The Company does not have a Remuneration Committee, instead the full Board develops the remuneration policy balancing the need to attract high quality Directors, establishing appropriate incentives and commercial control of expenses. The establishment of a committee would not provide further efficiency to the operation of the Board given the Board size. Not Applicable The Company does not have an equity-based remuneration scheme and does not intend to establish one. Recommendation 8.3 is not applicable. Global Masters Fund Limited 12 Global Masters Fund Limited 13 13 Global Masters Fund Limited GLOBAL MASTERS FUND LIMITED FOR THE YEAR ENDED 30 JUNE 2021 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Net unrealised gains/(losses) on investments through profit or loss Revenue Other expenses Profit/(Loss) before income tax Income tax benefit/(expense) Net Profit for the year Other Comprehensive Income Earnings per share: Basic earnings per share Diluted earnings per share Comprehensive Income: Comprehensive earnings per share Notes 2021 $ 2020 $ 5 6 7 346,315 1,633,887 (577,765) 1,402,437 (467,641) 934,796 326,549 361,158 (679,798) 7,909 60,672 68,581 Cents 8.72 8.72 Cents 0.64 0.64 16 16 16 58.17 (15.69) Realised and Unrealised gains/(loss) on Financial Assets taken to equity, net of tax 7c 5,302,357 (1,751,055) Total Comprehensive Income for the year 6,237,153 (1,682,474) FINANCIAL REPORT CONTENTS OF FINANCIAL REPORT 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 Page 15 16 17 18 19 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 12 Corporate Centre One 2 Corporate Court BUNDALL QLD 4217 The financial report was authorised for issue by the Directors on 25 August 2021. 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 Global Masters Fund Limited 14 14 Global Masters Fund Limited 15 The accompanying Notes form part of these Financial Statements. GLOBAL MASTERS FUND LIMITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021 Revenue Net unrealised gains/(losses) on investments through profit or loss Other expenses Profit/(Loss) before income tax Income tax benefit/(expense) Net Profit for the year Other Comprehensive Income Notes 2021 $ 2020 $ 5 6 7 346,315 1,633,887 (577,765) 1,402,437 (467,641) 934,796 326,549 361,158 (679,798) 7,909 60,672 68,581 Realised and Unrealised gains/(loss) on Financial Assets taken to equity, net of tax 7c 5,302,357 (1,751,055) Total Comprehensive Income for the year 6,237,153 (1,682,474) Earnings per share: Basic earnings per share Diluted earnings per share Comprehensive Income: Comprehensive earnings per share Cents 8.72 8.72 Cents 0.64 0.64 16 16 16 58.17 (15.69) FINANCIAL REPORT CONTENTS OF FINANCIAL REPORT Financial Report Income  Statement of Profit or Loss and Other Comprehensive  Statement of Financial Position  Statement of Changes in Equity  Statement of Cash Flows  Notes to the Financial Statements Page 15 16 17 18 19 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 12 Corporate Centre One 2 Corporate Court BUNDALL QLD 4217 The financial report was authorised for issue by the Directors on 25 August 2021. 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 14 Global Masters Fund Limited 15 15 Global Masters Fund Limited The accompanying Notes form part of these Financial Statements. FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 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 Retained Profits/(Accumulated losses) TOTAL EQUITY GLOBAL MASTERS FUND LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021 Notes 2021 $ 2020 $ 2020 8 9 10 11 12 13 14 15 414,284 21,428 30,503 466,215 133,283 14,109 21,422 168,814 32,109,546 32,109,546 23,634,995 23,634,995 32,575,761 23,803,809 224,647 224,647 315,476 315,476 5,267,465 5,267,465 2,641,837 2,641,837 5,492,112 2,957,313 27,083,649 20,846,496 Profit/(Loss) for the Year 12,871,873 13,339,636 872,140 27,083,649 12,871,873 8,037,279 (62,656) 20,846,496 934,796 - - 5,302,357 934,796 5,302,357 - - - 934,796 5,302,357 6,237,153 - 47,746 (47,746) - 12,871,873 872,140 13,062,256 277,380 27,083,649 Issued Share Capital $ Retained Profits/ Asset Asset (Accumulated Revaluation Realisation Losses) $ Reserve Reserve $ $ Total Equity $ 12,871,873 (131,237) 9,788,334 22,528,970 68,581 - - (1,751,055) 68,581 (1,751,055) - - - - 68,581 (1,751,055) (1,682,474) Transfer to realisation reserve - (325,126) 325,126 - Balance at 30 June 2020 12,871,873 (62,656) 7,712,153 325,126 20,846,496 2021 Note Issued Share Capital $ Retained Profits/ Asset Asset (Accumulated Revaluation Realisation Losses) $ Reserve Reserve $ $ Total Equity $ 12,871,873 (62,656) 7,712,153 325,126 20,846,496 Balance at 1 July 2019 Total Comprehensive Income Profit/(Loss) for the Year Other Comprehensive Income Total Comprehensive Income Other Balance at 1 July 2020 Total Comprehensive Income Other Comprehensive Income Total Comprehensive Income Other Transfer to realisation reserve Balance at 30 June 2021 - - - - - - - - The accompanying Notes form part of these Financial Statements. The accompanying Notes form part of these Financial Statements. Global Masters Fund Limited Global Masters Fund Limited 16 16 Global Masters Fund Limited 17 FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 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 TOTAL EQUITY Retained Profits/(Accumulated losses) 8 9 10 11 12 13 14 15 414,284 21,428 30,503 466,215 133,283 14,109 21,422 168,814 32,109,546 32,109,546 23,634,995 23,634,995 32,575,761 23,803,809 224,647 224,647 315,476 315,476 5,267,465 5,267,465 2,641,837 2,641,837 5,492,112 2,957,313 12,871,873 13,339,636 872,140 27,083,649 12,871,873 8,037,279 (62,656) 20,846,496 GLOBAL MASTERS FUND LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021 Notes 2021 $ 2020 $ 2020 Issued Share Capital $ Retained Profits/ (Accumulated Losses) $ Asset Revaluation Reserve $ Asset Realisation Reserve $ Balance at 1 July 2019 Total Comprehensive Income Profit/(Loss) for the Year Other Comprehensive Income Total Comprehensive Income Other Transfer to realisation reserve 12,871,873 (131,237) 9,788,334 68,581 - - (1,751,055) 68,581 (1,751,055) - - - - - (325,126) 325,126 - Total Equity $ 22,528,970 68,581 (1,751,055) (1,682,474) - - - - Balance at 30 June 2020 12,871,873 (62,656) 7,712,153 325,126 20,846,496 2021 Note 27,083,649 20,846,496 Profit/(Loss) for the Year Balance at 1 July 2020 Total Comprehensive Income Other Comprehensive Income Total Comprehensive Income Other Transfer to realisation reserve Balance at 30 June 2021 Issued Share Capital $ Retained Profits/ (Accumulated Losses) $ Asset Revaluation Reserve $ Asset Realisation Reserve $ Total Equity $ 12,871,873 (62,656) 7,712,153 325,126 20,846,496 - - - - 934,796 - - 5,302,357 934,796 5,302,357 - - - 934,796 5,302,357 6,237,153 - 47,746 (47,746) - 12,871,873 872,140 13,062,256 277,380 27,083,649 The accompanying Notes form part of these Financial Statements. The accompanying Notes form part of these Financial Statements. Global Masters Fund Limited 16 Global Masters Fund Limited 17 17 Global Masters Fund Limited Notes 2021 $ 2020 $ The functional and presentation currency of Global Masters Fund Deferred tax assets and liabilities are measured at the tax rates that Limited is Australian dollars. Its shares are publicly traded on the are expected to apply to the period when the asset is realised or the FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021 CASH FLOWS FROM OPERATING ACTIVITIES Distributions and Dividends received Interest received Payments to suppliers and employees Net cash provided by/(used in) operating activities 24 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of Investments Payments for Investments Net cash (used in)/provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Net cash provided by financing activities Net increase/(decrease) in cash and cash equivalents held Effects of foreign currency exchange rate changes on cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at end of year 8 245,695 16 (677,616) (431,905) 257,360 44 (456,843) (199,439) 1,679,196 (979,882) 699,314 2,257,577 (2,576,035) (318,458) - - 267,409 13,592 133,283 414,284 (517,897) 18,439 632,741 133,283 GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Australian Securities 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, have 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 Dividend Revenue is established. (b) Income Tax Interest is recognised using the effective interest method. Dividends are recognised when the entity’s right to receive payment 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. 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 The company holds investments in listed equities as its principle business, these investments are classified as either financial assets at fair value through profit or loss (FVPL) or financial assets at fair value through other comprehensive income (FVOCI). The election is on the basis of two primary criteria: The contractual cash flow characteristics of the financial asset; and - - The business model for managing financial assets Investments held in the actively managed UK portfolio have been designated as financial assets at fair value through profit or loss while all other investments, which are held for medium to long term capital appreciation, have been designated as financial assets at fair value through other comprehensive income. The accompanying Notes form part of these Financial Statements. Global Masters Fund Limited Global Masters Fund Limited 18 18 Global Masters Fund Limited 19 FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021 CASH FLOWS FROM OPERATING ACTIVITIES Distributions and Dividends received Interest received Payments to suppliers and employees CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of Investments Payments for Investments Net cash (used in)/provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Net cash provided by financing activities Net cash provided by/(used in) operating activities 24 Net increase/(decrease) in cash and cash equivalents held Effects of foreign currency exchange rate changes on cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at end of year 8 Notes 2021 $ 2020 $ 245,695 16 (677,616) (431,905) 257,360 44 (456,843) (199,439) 1,679,196 (979,882) 699,314 2,257,577 (2,576,035) (318,458) - - 267,409 13,592 133,283 414,284 (517,897) 18,439 632,741 133,283 GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 The functional and presentation currency of Global Masters Fund Limited is Australian dollars. Its shares are publicly traded on the Australian Securities Exchange (“ASX”). 1. BASIS OF PREPARATION The financial statements are general purpose financial statements in accordance with the Australian that have been prepared 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, have 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. 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 The company holds investments in listed equities as its principle business, these investments are classified as either financial assets at fair value through profit or loss (FVPL) or financial assets at fair value through other comprehensive income (FVOCI). The election is on the basis of two primary criteria: - - The contractual cash flow characteristics of the financial asset; and The business model for managing financial assets Investments held in the actively managed UK portfolio have been designated as financial assets at fair value through profit or loss while all other investments, which are held for medium to long term capital appreciation, have been designated as financial assets at fair value through other comprehensive income. The accompanying Notes form part of these Financial Statements. Global Masters Fund Limited 18 Global Masters Fund Limited 19 19 Global Masters Fund Limited (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 2021 (i) New Accounting Standards and Interpretations (b) Key Judgements 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: 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 recognised as a result of tax losses has been carried forward as it is believed that the investment process will deliver taxable profits over the investment period, this will allow the Company to utilise the deferred tax asset over time. 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. AASB 1060 General Purpose Financial Statements Effective AASB 1060 is a single standard containing all the disclosure requirements for an entity preparing General Purpose Financial Statements under date 1 July 2021 Tier 2. AASB 1060 is not applicable to the Company. AASB 17 Insurance Contracts Effective AASB 17 Insurance replaces three standards that Date currently deal with insurance: definitions of 1 January 2023 insurance (AASB 4), general insurance (AASB 1023) and life insurance (AASB 1038). The concept behind the standard is to account for profit from insurance contracts in a way that considers risk associated with an insurance contract. There are three methods of accounting under the new standard, with the applicable method determined by the nature of the insurance contracts issued. The introduction of AASB 17 will not have an impact on the Company. 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. FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 (e) Financial Instruments (continued) Financial Assets - Recognition The Company’s investments are recognised on the date that the company commits itself to the purchase of the asset (ie trade date accounting is adopted). Investments are measured at fair value, which is determined by quoted prices in an active market. Financial Assets - Subsequent Measurement Securities held in the portfolio are revalued to market values at each reporting date. For investments designated as financial assets at fair value through profit or loss the realised and unrealised net gains or losses on the portfolio are recognised each period in the profit or loss. For investments designated as financial assets at fair value through other comprehensive income the realised and unrealised net gains or losses on the portfolio are 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. Trade 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. 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. Global Masters Fund Limited Global Masters Fund Limited 20 20 Global Masters Fund Limited 21 (e) Financial Instruments (continued) (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. FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Financial Assets - Recognition The Company’s investments are recognised on the date that the company commits itself to the purchase of the asset (ie trade date accounting is adopted). Investments are measured at fair value, which is determined by quoted prices in an active market. Financial Assets - Subsequent Measurement Securities held in the portfolio are revalued to market values at each reporting date. For investments designated as financial assets at fair value through profit or loss the realised and unrealised net gains or losses on the portfolio are recognised each period in the profit or loss. For investments designated as financial assets at fair value through other comprehensive income the realised and unrealised net gains or losses on the portfolio are 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. Trade 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. 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. GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 (i) New Accounting Standards and Interpretations (b) Key Judgements 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 1060 General Purpose Financial Statements Effective date 1 July 2021 AASB 1060 is a single standard containing all the disclosure requirements for an entity preparing General Purpose Financial Statements under Tier 2. AASB 1060 is not applicable to the Company. AASB 17 Insurance Contracts Effective Date 1 January 2023 AASB 17 Insurance replaces three standards that currently deal with insurance: definitions of insurance (AASB 4), general insurance (AASB 1023) and life insurance (AASB 1038). The concept behind the standard is to account for profit from insurance contracts in a way that insurance considers risk associated with an contract. There are three methods of accounting under the new standard, with the applicable method determined by the nature of the insurance contracts issued. The introduction of AASB 17 will not have an impact on the Company. 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. 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 recognised as a result of tax losses has been carried forward as it is believed that the investment process will deliver taxable profits over the investment period, this will allow the Company to utilise the deferred tax asset over time. 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. Global Masters Fund Limited 20 Global Masters Fund Limited 21 21 Global Masters Fund Limited FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 5. REVENUE AND OTHER INCOME Dividends Received Interest Received Gain on Sale of Other UK Investments Realised Foreign Exchange Gain/(Loss) 6. OTHER EXPENSES Auditors Remuneration ASX and Share Registry costs Management Fees Performance Fees Director Fees Administration Costs 7. INCOME TAX EXPENSE (a) Reconciliation of income tax to accounting profit Accounting profit/(loss) before tax Prima facie tax payable on ordinary activities before income tax rate at 30.0% (2020 – 30.0%) Adjust for tax effect of: - - - - Timing differences of transactions Fully Franked Dividends received Carried forward losses Capital raising costs Rebateable Fully Franked Dividends Tax expense/(credit) shown in Profit and Loss statement (b) The components of tax benefit comprise: (Decrease)/increase in deferred tax asset Decrease/(increase) in deferred tax liability Income tax (expense)/credit (c) Amounts recognised directly in Other Comprehensive Income Aggregate current and deferred tax arising in the reporting period and not recognised in Profit or Loss, but directly debited or credited in Other Comprehensive Income. Amount before tax Tax (Expense)/Credit at 30.0% (2020: 30.0%) Adjusted for tax effect of available losses 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 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 2021 $ 2020 $ 253,073 16 110,396 (17,170) 346,315 15,375 46,260 57,738 193,310 140,754 124,328 577,765 1,402,437 420,731 - 12,799 79,891 (3,118) (42,662) 467,641 249,988 44 19,663 56,854 326,549 15,391 48,307 51,608 293,912 168,125 102,455 679,798 7,909 2,373 (27,528) 14,129 - (3,118) (46,528) (60,672) 45,201 (512,843) (467,641) 27,667 33,005 60,672 7,460,344 (2,238,103) 80,117 (2,462,709) 738,813 (27,159) 5,302,357 (1,751,055) 54,116 360,168 414,284 52,330 80,953 133,283 414,284 133,283 GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 9. TRADE AND OTHER RECEIVABLES CURRENT Dividends Receivable GST receivable Total current trade and other receivables 10. OTHER ASSETS CURRENT Prepayments Total Other Assets 11. FINANCIAL ASSETS Non-Current Financial Assets 12. TRADE AND OTHER PAYABLES CURRENT Trade payables Accrued expenses 13. DEFERRED TAX Deferred Tax Assets Deferred Tax Liabilities Net deferred tax liabilities adjusted for deferred tax assets (a) Deferred Tax Assets attributable to: - Accruals - Tax losses (b) Deferred Tax Liabilities attributable to: - Unfranked dividend receivable - Unrealised Gain on Financial Assets Notes 2021 $ 2020 $ 14,482 6,946 21,428 7,104 7,005 14,109 30,503 30,503 21,422 21,422 19,413 205,234 224,647 8,663 306,813 315,476 13(a) 13(b) (793,227) 6,060,692 5,267,465 (667,909) 3,309,746 2,641,837 (3,555) (789,672) (793,227) (3,645) (664,264) (667,909) 4,345 6,056,347 6,060,692 2,131 3,307,615 3,309,746 Listed Investments classified as fair value through profit or loss Listed Investments classified as fair value through other comprehensive income 19 19 Total Available-for-sale Financial Assets 6,545,547 25,563,999 5,001,752 18,633,243 32,109,546 23,634,995 Global Masters Fund Limited Global Masters Fund Limited 22 22 Global Masters Fund Limited 23 GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 9. TRADE AND OTHER RECEIVABLES CURRENT Dividends Receivable GST receivable Total current trade and other receivables 10. OTHER ASSETS CURRENT Prepayments Total Other Assets 11. FINANCIAL ASSETS Non-Current Financial Assets Notes 2021 $ 2020 $ 14,482 6,946 21,428 7,104 7,005 14,109 30,503 30,503 21,422 21,422 (a) Reconciliation of income tax to accounting profit Accounting profit/(loss) before tax Prima facie tax payable on ordinary activities before income tax rate at 30.0% (2020 – 30.0%) Listed Investments classified as fair value through profit or loss Listed Investments classified as fair value through other comprehensive income 19 19 Total Available-for-sale Financial Assets 6,545,547 25,563,999 5,001,752 18,633,243 32,109,546 23,634,995 12. TRADE AND OTHER PAYABLES CURRENT Trade payables Accrued expenses 13. DEFERRED TAX Deferred Tax Assets Deferred Tax Liabilities Net deferred tax liabilities adjusted for deferred tax assets (a) Deferred Tax Assets attributable to: - Accruals - Tax losses (b) Deferred Tax Liabilities attributable to: - Unfranked dividend receivable - Unrealised Gain on Financial Assets 19,413 205,234 224,647 8,663 306,813 315,476 13(a) 13(b) (793,227) 6,060,692 5,267,465 (667,909) 3,309,746 2,641,837 (3,555) (789,672) (793,227) (3,645) (664,264) (667,909) 4,345 6,056,347 6,060,692 2,131 3,307,615 3,309,746 FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 5. REVENUE AND OTHER INCOME Dividends Received Interest Received Gain on Sale of Other UK Investments Realised Foreign Exchange Gain/(Loss) 6. OTHER EXPENSES Auditors Remuneration ASX and Share Registry costs Management Fees Performance Fees Director Fees Administration Costs 7. INCOME TAX EXPENSE (c) Amounts recognised directly in Other Comprehensive Income Aggregate current and deferred tax arising in the reporting period and not recognised in Profit or Loss, but directly debited or credited in Other Comprehensive Income. Adjust for tax effect of: - - - - Timing differences of transactions Fully Franked Dividends received Carried forward losses Capital raising costs Rebateable Fully Franked Dividends Tax expense/(credit) shown in Profit and Loss statement (b) The components of tax benefit comprise: (Decrease)/increase in deferred tax asset Decrease/(increase) in deferred tax liability Income tax (expense)/credit Amount before tax Tax (Expense)/Credit at 30.0% (2020: 30.0%) Adjusted for tax effect of available losses 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 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 2021 $ 2020 $ 253,073 16 110,396 (17,170) 346,315 15,375 46,260 57,738 193,310 140,754 124,328 577,765 1,402,437 420,731 - 12,799 79,891 (3,118) (42,662) 467,641 249,988 44 19,663 56,854 326,549 15,391 48,307 51,608 293,912 168,125 102,455 679,798 7,909 2,373 (27,528) 14,129 - (3,118) (46,528) (60,672) 45,201 (512,843) (467,641) 27,667 33,005 60,672 7,460,344 (2,238,103) 80,117 (2,462,709) 738,813 (27,159) 5,302,357 (1,751,055) 54,116 360,168 414,284 52,330 80,953 133,283 414,284 133,283 Global Masters Fund Limited 22 Global Masters Fund Limited 23 23 Global Masters Fund Limited GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 2021 $ 2020 $ 12,871,873 12,871,873 FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 14. ISSUED CAPITAL (a) Share Capital 10,723,159 Ordinary Shares (2020: 10,723,159) (b) Ordinary Shares Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote. (c) Movements in ordinary share capital Date Details 30 June 2019 Balance Nil Movement in the year 30 June 2020 Balance Number of Shares 10,723,159 - 10,723,159 Nil Movement in the year - Price $ 12,871,873 - 12,871,873 - - - 30 June 2021 Balance 10,723,159 12,871,873 15. RESERVES (a) Asset Revaluation Reserve The asset revaluation reserve records the unrealised capital profits and losses, net of deferred tax, on investments classified as fair value through other comprehensive income. (b) Asset Realisation Reserve The asset realisation reserve records realised gains and losses from the sale of investments, net of tax, which are transferred from the Asset Revaluation Reserve, net of dividends paid from reserves 13,062,256 7,712,153 277,380 325,126 Total Reserves 13,339,636 8,037,279 16. EARNINGS PER SHARE 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 Weighted number of all shares, including convertible securities Basic earnings per share (cents per share) Diluted earnings per share (cents per share) Total Comprehensive Income per share (cents per share) 934,796 68,581 6,237,153 (1,682,474) 10,723,159 10,723,159 10,723,159 10,723,159 Cents 8.72 8.72 58.17 Cents 0.64 0.64 (15.69) 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. (b) Currency Risk The Company‘s investment portfolio includes investments in USA, UK and South Africa, 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 The Company does not speculate in financial assets. investment portfolio. The most significant financial risks to which the Company is The carrying value of these foreign currency denominated assets at exposed to are described below: balance date was as follows:  Market risk - currency risk, interest rate risk and price risk The principal categories of financial instruments used by the Investments in listed shares, listed unit trusts and unlisted Specific risks   Liquidity risk Credit risk Financial instruments used Company are: Trade receivables Cash at bank     unit trusts Trade and other payables (a) Interest Rate Risk The Company's exposure to interest rate risk, which is the risk that a financial instrument’s 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: Carrying Amount Cash and cash equivalents Investments Total (c) Credit risk 2021 AUD $ 360,168 2020 AUD $ 80,898 29,399,946 21,425,726 29,760,114 21,506,624 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 Effective Interest Rate Financial Assets Cash and cash equivalents 6 Months or less Financial Assets Cash and cash equivalents Total Financial Assets 2021 % 0.0 2021 $ the requirement for collateral. (d) Net Fair Value 2020 % 2020 $ The following methods and assumptions are used to determine the net fair values of financial assets and liabilities: 0.0 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. 414,284 414,284 133,283 133,283 Investments: carrying amount. The closing quoted market price approximates fair value and the The carrying value of all the financial assets and liabilities of the Company as disclosed in the Statement of Financial Position and Notes to the Financial Statements is the same as the net fair value. The Company does not rely on interest returns as a source of income, so the interest rate risk is deemed extremely low. All other financial assets and liabilities are non-interest bearing. Global Masters Fund Limited Global Masters Fund Limited 24 24 Global Masters Fund Limited 25 FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 14. ISSUED CAPITAL (a) Share Capital (b) Ordinary Shares 10,723,159 Ordinary Shares (2020: 10,723,159) 12,871,873 12,871,873 Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote. (c) Movements in ordinary share capital Date Details Price $ Number of Shares 10,723,159 30 June 2019 Balance 12,871,873 30 June 2020 Balance 10,723,159 12,871,873 Nil Movement in the year Nil Movement in the year - - - - - - 30 June 2021 Balance 10,723,159 12,871,873 15. RESERVES (a) Asset Revaluation Reserve The asset revaluation reserve records the unrealised capital profits and losses, net of deferred tax, on investments classified as fair value through other comprehensive income. (b) Asset Realisation Reserve 277,380 325,126 The asset realisation reserve records realised gains and losses from the sale of investments, net of tax, which are transferred from the Asset Revaluation Reserve, net of dividends paid from reserves Total Reserves 13,339,636 8,037,279 13,062,256 7,712,153 16. EARNINGS PER SHARE 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 Weighted number of all shares, including convertible securities Basic earnings per share (cents per share) Diluted earnings per share (cents per share) Total Comprehensive Income per share (cents per share) 934,796 68,581 6,237,153 (1,682,474) 10,723,159 10,723,159 10,723,159 10,723,159 Cents 8.72 8.72 58.17 Cents 0.64 0.64 (15.69) GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 2021 $ 2020 $ 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. (b) Currency Risk The Company‘s investment portfolio includes investments in USA, UK and South Africa, 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 most significant financial risks to which the Company is exposed to are described below: The carrying value of these foreign currency denominated assets at balance date was as follows: Specific risks Liquidity risk Credit risk    Market risk - currency risk, interest rate risk and price risk Financial instruments used The principal categories of financial instruments used by the Company are:     Trade receivables Cash at bank Investments in listed shares, listed unit trusts and unlisted unit trusts Trade and other payables (a) Interest Rate Risk The Company's exposure to interest rate risk, which is the risk that a financial instrument’s 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 2021 % 0.0 2021 $ 2020 % 0.0 2020 $ 414,284 414,284 133,283 133,283 The Company does not rely on interest returns as a source of income, so the interest rate risk is deemed extremely low. All other financial assets and liabilities are non-interest bearing. Carrying Amount Cash and cash equivalents Investments Total (c) Credit risk 2021 AUD $ 360,168 2020 AUD $ 80,898 29,399,946 21,425,726 29,760,114 21,506,624 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. (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. Investments: The closing quoted market 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 Statement of Financial Position and Notes to the Financial Statements is the same as the net fair value. Global Masters Fund Limited 24 Global Masters Fund Limited 25 25 Global Masters Fund Limited FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 17. FINANCIAL RISK MANAGEMENT (continued) 19. FAIR VALUE MEASUREMENTS (e) Sensitivity Analysis The following table illustrates sensitivities to the Company’s exposure to changes in interest rates, exchange rates and commodity and equity prices. The table indicates the impact on how profit and equity values reported at balance date would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables. At 30 June 2021, the effect on profit and equity as a result of changes in the interest rate, exchange rate or equity prices 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 exchange rates 2021 $ 2020 $ +/- 18,696 +/- 1,372 The Company measures the following assets and liabilities at fair value on a recurring basis: - Financial Assets at fair value through Other Comprehensive Income (FVTOCI). - Financial Assets at fair value through Profit or Loss (FVTPL). Fair value hierarchy AASB 13 Fair Value Measurement requires all assets and liabilities measured at fair value to be assigned to a level in the fair value hierarchy as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 Inputs other than quoted prices included with level 1 that are observable for the asset or liability, either directly or indirectly. +/- 1,488,006 +/- 1,075,331 Level 3 Unobservable inputs for the asset or liability. GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 20. AUDITORS REMUNERATION Remuneration of the auditor of the Company for: Audit or reviewing the financial statements Total remuneration of auditors 21. RELATED PARTY TRANSACTIONS Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. The following transactions occurred with related parties: EC Pohl & Co Pty Ltd for Management Fee and Performance Fee (payable in accordance with the Management Services Agreement as detailed in Note 22).  Management Fee  Performance Fee Total Fees Paid Dr E C Pohl has an interest in the transaction as during the year Dr E C Pohl was a Director, employee and Shareholder of EC Pohl & Co Pty Ltd. 2021 $ 2020 $ 15,375 15,375 15,391 15,391 57,738 193,310 251,048 51,608 293,912 345,520 In accordance with a Management Services Agreement dated 11 May 2017, the Company agreed to engage the Manager to provide primary and secondary management services as listed below. The agreement is due to expire on 10 May 2022. Primary services only provided for the actively managed portion of the portfolio include: 1) managing the investment of the Company’s portfolio, including keeping it under review; ensuring investments by the Company are only made in authorised investments; complying with the investment policy of the Company; and identifying, evaluating and implementing the acquisition and disposal of authorised investments. Additional Primary services include +/- 10% in listed investments +/- 3,210,955 +/- 2,363,500 The table below shows the assigned level for each asset and liability held at fair value by the Company: 22. MANAGEMENT SERVICES AGREEMENT (f) Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The objective of the Company is to ensure as far as possible that it will always have sufficient liquidity to meet its liabilities when due, under both normal and distressed conditions. Prudent liquidity risk management implies maintaining sufficient cash and marketable Australian listed equity securities. The Manager controls liquidity risk by continuously monitoring the balance between equity securities and cash or cash equivalents and the maturity profiles of assets and liabilities to ensure this risk is minimal. 18. CAPITAL MANAGEMENT The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The capital structure of the Company consists of equity attributable to members of the Company. The Board monitors the return on capital, which is defined as net operating income divided by total Shareholders’ Equity. The Board also monitors the level of dividends to Shareholders. The capital of the Company is invested by the Investment Manager in accordance with the investment policy established by the Board. The Company has no borrowings. It is not subject to any externally imposed capital requirements. There were no changes in the Company’s approach to capital management during the year. 30 June 2021 Recurring fair value measurements - Listed Equity Securities Level 1 Level 2 Level 3 Total FVTPL $6,545,547 FVTOCI $25,563,999 - - - - $6,545,547 $25,563,999 (i) provide the Company with quarterly investment performance reporting; (ii) promoting investment in the Company by the general investment community; and 30 June 2020 Recurring fair value measurements - Listed Equity Securities (iii) providing investor relationship services Secondary management services include: Level 1 Level 2 Level 3 Total FVTPL $5,001,752 FVTOCI $18,633,244 - - - - $5,001,752 $18,633,244 Transfers between levels of hierarchy There were no transfers between levels of the fair value hierarchy. Highest and best use The current use of each asset measured at fair value is considered to be its highest and best use. 1) provision of office services, corporate and information technology services support. The agreement is for a term of 5 years, and may be terminated if: either party ceases to carry on business, or either party enters into liquidation voluntarily or otherwise, or either party passes any resolution for voluntary winding-up, or a receiver of the property of either party, or any part thereof, is appointed, or after the initial term the Shareholders of the Company at a general meeting called for that purpose, resolve by ordinary resolution to terminate this agreement, or if the Company provides written notice to the Manager in the event of any material and substantial breach of the agreement by the Manager or if the Manager fails to remedy a breach of this agreement within 14 days following written notice of the g) if the Manager provides written notice to the Company in the event of any material and substantial breach of the agreement by the Company or if the Company fails to remedy a breach of this agreement within 14 days following written notice of the breach. breach. The Manager is paid a management fee of 1% per annum on the actively managed portion of the portfolio. In addition, the Manager is paid a performance fee, payable annually in arrears, equal to 20% of the amount by which the Company’s actively managed portfolio performance exceeds the performance of the FTSE100, subject to a high-water mark. If the Company’s net performance in the year is less than the Benchmark, then no performance fee will be payable. 2) 3) 4) a) b) c) d) e) f) Global Masters Fund Limited Global Masters Fund Limited 26 26 Global Masters Fund Limited 27 17. FINANCIAL RISK MANAGEMENT (continued) 19. FAIR VALUE MEASUREMENTS (e) Sensitivity Analysis The Company measures the following assets and liabilities at fair +/- 1,488,006 +/- 1,075,331 Level 3 Unobservable inputs for the asset or liability. +/- 10% in listed investments +/- 3,210,955 +/- 2,363,500 held at fair value by the Company: FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 The following table illustrates sensitivities to the Company’s exposure to changes in interest rates, exchange rates and commodity and equity prices. The table indicates the impact on how profit and equity values reported at balance date would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables. At 30 June 2021, the effect on profit and equity as a result of changes in the interest rate, exchange rate or equity prices 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 exchange rates 2021 $ 2020 $ +/- 18,696 +/- 1,372 (f) Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The objective of the Company is to ensure as far as possible that it will always have sufficient liquidity to meet its liabilities when due, under both normal and distressed conditions. Prudent liquidity risk management implies maintaining sufficient cash and marketable Australian listed equity securities. The Manager controls liquidity risk by continuously monitoring the balance between equity securities and cash or cash equivalents and the maturity profiles of assets and liabilities to ensure this risk is minimal. 18. CAPITAL MANAGEMENT The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The capital structure of the Company consists of equity attributable to members of the Company. The Board monitors the return on capital, which is defined as net operating income divided by total Shareholders’ Equity. The Board also monitors the level of dividends to Shareholders. The capital of the Company is invested by the Investment Manager in accordance with the investment policy established by the Board. The Company has no borrowings. It is not subject to any externally imposed capital requirements. There were no changes in the Company’s approach to capital management during the year. value on a recurring basis: Income (FVTOCI). - Financial Assets at fair value through Other Comprehensive - Financial Assets at fair value through Profit or Loss (FVTPL). Fair value hierarchy AASB 13 Fair Value Measurement requires all assets and liabilities measured at fair value to be assigned to a level in the fair value hierarchy as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 Inputs other than quoted prices included with level 1 that are observable for the asset or liability, either directly or indirectly. 30 June 2021 Listed Equity Securities Recurring fair value measurements - FVTPL FVTOCI $6,545,547 $25,563,999 $6,545,547 $25,563,999 30 June 2020 Listed Equity Securities Recurring fair value measurements - FVTPL FVTOCI $5,001,752 $18,633,244 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total - - - - - - - - $5,001,752 $18,633,244 Transfers between levels of hierarchy There were no transfers between levels of the fair value hierarchy. Highest and best use The current use of each asset measured at fair value is considered to be its highest and best use. GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 20. AUDITORS REMUNERATION Remuneration of the auditor of the Company for: Audit or reviewing the financial statements Total remuneration of auditors 21. RELATED PARTY TRANSACTIONS Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. The following transactions occurred with related parties: EC Pohl & Co Pty Ltd for Management Fee and Performance Fee (payable in accordance with the Management Services Agreement as detailed in Note 22).  Management Fee  Performance Fee Total Fees Paid Dr E C Pohl has an interest in the transaction as during the year Dr E C Pohl was a Director, employee and Shareholder of EC Pohl & Co Pty Ltd. 2021 $ 2020 $ 15,375 15,375 15,391 15,391 57,738 193,310 251,048 51,608 293,912 345,520 The table below shows the assigned level for each asset and liability 22. MANAGEMENT SERVICES AGREEMENT provide the Company with quarterly investment performance reporting; In accordance with a Management Services Agreement dated 11 May 2017, the Company agreed to engage the Manager to provide primary and secondary management services as listed below. The agreement is due to expire on 10 May 2022. Primary services only provided for the actively managed portion of the portfolio include: 1) managing the investment of the Company’s portfolio, including keeping it under review; ensuring investments by the Company are only made in authorised investments; 2) complying with the investment policy of the Company; and 3) 4) identifying, evaluating and implementing the acquisition and disposal of authorised investments. Additional Primary services include (i) (ii) promoting investment in the Company by the general investment community; and (iii) providing investor relationship services Secondary management services include: 1) provision of office services, corporate and information technology services support. The agreement is for a term of 5 years, and may be terminated if: a) b) c) d) e) either party ceases to carry on business, or either party enters into liquidation voluntarily or otherwise, or either party passes any resolution for voluntary winding-up, or a receiver of the property of either party, or any part thereof, is appointed, or after the initial term the Shareholders of the Company at a general meeting called for that purpose, resolve by ordinary resolution to terminate this agreement, or if the Company provides written notice to the Manager in the event of any material and substantial breach of the agreement by the Manager or if the Manager fails to remedy a breach of this agreement within 14 days following written notice of the breach. if the Manager provides written notice to the Company in the event of any material and substantial breach of the agreement by the Company or if the Company fails to remedy a breach of this agreement within 14 days following written notice of the breach. f) g) Global Masters Fund Limited 26 Global Masters Fund Limited 27 27 Global Masters Fund Limited The Manager is paid a management fee of 1% per annum on the actively managed portion of the portfolio. In addition, the Manager is paid a performance fee, payable annually in arrears, equal to 20% of the amount by which the Company’s actively managed portfolio performance exceeds the performance of the FTSE100, subject to a high-water mark. If the Company’s net performance in the year is less than the Benchmark, then no performance fee will be payable. FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 DIRECTORS’ DECLARATION The Directors of the Company declare that: 2021 $ 2020 $ (a) the Financial Statements and Notes set out on pages 14 to 28 are in accordance with the Corporations Act 2001, including: 23. KEY MANAGEMENT PERSONNEL DISCLOSURES The Company has no staff and therefore has no Key Management Personnel other than the Directors. No member of Key Management Personnel held options over shares in the Company during the year. There have been no other transactions with Key Management Personnel or their related entities other than those disclosed in Note 21. The compensation of Non-executive Directors (including the Managing Director) for the year ending 30 June 2021 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. The total remuneration paid is as follows: Short-term employment benefit 140,754 168,125 The Company’s Secretary, Brian Jones, was contracted directly during the financial year. of the Corporations Act 2001. 24. CASH FLOW INFORMATION (a) Reconciliation of result for the year to cash flows from operating activities Profit/(Loss) for the year Cash flows excluded from profit attributable to operating activities Non-operating cash flows in profit - net (gain)/loss on disposal of investments - net (gain)/loss on foreign exchange Non-cash flows in profit - net unrealised (gain)/loss on financial assets at fair value Changes in assets and liabilities - (increase)/decrease in prepayments - (increase)/decrease in trade and other receivables - increase/(decrease) in trade and other payables - increase/(decrease) in Deferred Tax Cash flow from operations 934,796 68,581 (110,396) 17,170 (19,663) (56,854) (1,633,887) (361,158) (9,081) (7,319) (90,829) 467,641 (1,770) 7,146 224,951 (60,672) (431,905) (199,439) Dr Emmanuel (Manny) C Pohl AM Managing Director 25 August 2021 (i) 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 (ii) give a true and fair view of the financial position as at 30 June 2021 and of the performance for the year ended on that date; and in the Directors’ opinion, payable; and (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and (c) 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 2021 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 This declaration is made in accordance with a resolution of the Directors and is signed for and on behalf of the Directors by: 25. CONTINGENCIES In the opinion of the Directors, the Company did not have any contingencies at 30 June 2021 (30 June 2020: None). 26. 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. Global Masters Fund Limited Global Masters Fund Limited 28 28 Global Masters Fund Limited 29 FINANCIAL REPORT GLOBAL MASTERS FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 DIRECTORS’ DECLARATION The Directors of the Company declare that: 2021 $ 2020 $ (a) the Financial Statements and Notes set out on pages 14 to 28 are in accordance with the Corporations Act 2001, including: (i) 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 (ii) give a true and fair view of the financial position as at 30 June 2021 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 2021 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 AM Managing Director 25 August 2021 23. KEY MANAGEMENT PERSONNEL DISCLOSURES The Company has no staff and therefore has no Key Management Personnel other than the Directors. the year. No member of Key Management Personnel held options over shares in the Company during There have been no other transactions with Key Management Personnel or their related entities other than those disclosed in Note 21. The compensation of Non-executive Directors (including the Managing Director) for the year ending 30 June 2021 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. The total remuneration paid is as follows: Short-term employment benefit The Company’s Secretary, Brian Jones, was contracted directly during the financial year. 24. CASH FLOW INFORMATION (a) Reconciliation of result for the year to cash flows from operating activities Profit/(Loss) for the year Cash flows excluded from profit attributable to operating activities Non-operating cash flows in profit - net (gain)/loss on disposal of investments - net (gain)/loss on foreign exchange Non-cash flows in profit - net unrealised (gain)/loss on financial assets at fair value Changes in assets and liabilities - (increase)/decrease in prepayments - (increase)/decrease in trade and other receivables - increase/(decrease) in trade and other payables - increase/(decrease) in Deferred Tax Cash flow from operations 25. CONTINGENCIES (30 June 2020: None). In the opinion of the Directors, the Company did not have any contingencies at 30 June 2021 26. 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. 140,754 168,125 934,796 68,581 (110,396) 17,170 (19,663) (56,854) (1,633,887) (361,158) (9,081) (7,319) (90,829) 467,641 (1,770) 7,146 224,951 (60,672) (431,905) (199,439) Global Masters Fund Limited 28 Global Masters Fund Limited 29 29 Global Masters Fund Limited INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT (continued) Global Masters Fund Limited Global Masters Fund Limited 30 30 Global Masters Fund Limited 31 INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT (continued) Global Masters Fund Limited 30 Global Masters Fund Limited 31 31 Global Masters Fund Limited INDEPENDENT AUDITOR’S REPORT (continued) INDEPENDENT AUDITOR’S REPORT (continued) Global Masters Fund Limited Global Masters Fund Limited 32 32 Global Masters Fund Limited 33 INDEPENDENT AUDITOR’S REPORT (continued) INDEPENDENT AUDITOR’S REPORT (continued) Global Masters Fund Limited 32 Global Masters Fund Limited 33 33 Global Masters Fund Limited SHAREHOLDER INFORMATION INVESTMENTS The Shareholder information set out below was applicable as at 16 August 2021. (1) HOLDINGS OF SECURITIES AT 30 JUNE 2021 1. TWENTY LARGEST SHAREHOLDERS 2. DISTRIBUTION OF SECURITIES during the course of the year. 121,631 1.1% 3. SUBSTANTIAL SHAREHOLDINGS Shareholders Last year’s figures Ordinary Shares % CITICORP NOMINEES PTY LIMITED 5,755,623 53.7% BOND STREET CUSTODIANS LIMITED 280,000 2.6% EMSDALE HOLDINGS PTY LTD 270,000 2.5% BOND STREET CUSTODIANS LIMITED ROSETTA PTY LTD POSEIDON NOMINEES PTY LTD JACOBEAN PTY LTD PETER I H WONG PTY LTD J P MORGAN NOMINEES AUSTRALIA PTY LIMITED VAL GARDENA PTY LTD J BARLOW CONSULTANTS PTY LTD MUNGER PTY LTD CELLAR STOCKS PTY LTD MCCARRUMS PTY LTD MR PETER LEECE ABBAWOOD NOMINEES PTY LTD MRS JANINE ROSLYN HUCKER MRS SYLVIA MARIA VALMADRE BOND STREET CUSTODIANS LIMITED MR WILLIAM PAUL CHUN TIE & MS ORLEENA MOO 180,000 1.7% 155,700 1.5% 150,000 1.4% 130,000 1.2% 107,588 1.0% 107,021 102,317 1.0% 1.0% 101,247 0.9% 100,000 0.9% 90,000 0.8% 77,937 0.7% 67,251 0.6% 60,765 60,000 0.6% 0.6% 51,981 0.5% 50,778 0.5% Total 8,019,839 74.8% Distributions 1 1,001 5,001 10,001 100,001 Total to to to to 1,000 5,000 10,000 100,000 and over Holdings of less than a marketable parcel No. of Shareholders % of shares held 0.58% 4.68% 6.39% 18.76% 69.58% 100.00% 117 162 88 78 12 457 12 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 AM * Number of Shares % of Total 5,761,311 53.7 * Has the power to control voting and/or the disposal of securities in accordance with a Power Of Attorney in relation to 5,755,061 shares. 4. VOTING RIGHTS 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. 5. ON-MARKET BUY BACK There is no current on-market buy back. Individual investments at 30 June 2021 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 Company Shares Market Value $ % BIPCFB BIP BCI Worldwide Flexible Fund Class B 15,797,997.7392 ABC AHT BEG BNZL BRK.A BRK.B CBG CLIN CPG DOM DPLM GPPGF FEVR FOUR FSI GAMA GAW HLMA HSV JD JIM LIO NG NWF REL RMV SCT SMS SPX TET XPP YOU ORDINARY SHARES ABCAM PLC ASHTEAD GROUP PLC BEGBIES TRAYNOR GROUP PLC BUNZL PLC Berkshire Hathaway Inc. A Stock Berkshire Hathaway Inc. B Stock CLOSE BROTHERS GROUP PLC CLINIGEN GROUP PLC COMPASS GROUP PLC DOMINO'S PIZZA GROUP PLC DIPLOMA PLC Global Positive Peace Growth Fund FEVERTREE DRINKS PLC 4IMPRINT GROUP PLC Flagship Investments Limited GAMMA COMMUNICATIONS PLC GAMES WORKSHOP GROUP PLC HALMA PLC HOMESERVE PLC JD SPORTS FASHION PLC JARVIS SECURITIES PLC LIONTRUST ASSET MANAGEMENT PLC NATIONAL GRID PLC NWF GROUP PLC RELX PLC RIGHTMOVE PLC SOFTCAT PLC SMART METERING SYSTEMS PLC SPIRAX-SARCO ENGINEERING PLC TREATT PLC XP POWER LIMITED YOUGOV PLC 1,129,000 2,709,600.00 6,000 6,500 20,000 6,000 27 15,299 10,000 11,000 6,500 30,000 7,000 419,224 3,000 1,600 4,000 1,600 4,800 6,000 14,000 58,400 12,335 13,300 20,000 7,500 32,000 8,000 12,000 1,381 6,468 2,000 8,000 152,835.93 643,106.15 50,170.62 1,602,433.56 264,391.77 15,073,354.09 5,670,596.19 279,442.96 125,592.55 182,477.17 215,032.74 374,951.58 508,015.64 142,377.57 78,944.94 146,822.84 336,438.26 238,339.94 105,745.64 237,314.40 270,913.95 427,737.71 225,890.25 77,469.34 265,470.81 383,303.51 262,067.69 192,345.29 346,810.20 139,584.25 205,847.09 174,121.55 0.47 1.98 0.15 4.93 0.81 46.35 17.44 0.86 0.39 0.56 0.66 1.15 1.56 0.44 0.24 8.33 0.45 1.03 0.73 0.33 0.73 0.83 1.32 0.69 0.24 0.82 1.18 0.81 0.59 1.07 0.43 0.63 0.52 CASH (INCLUDING DIVIDENDS RECEIVABLE) Cash- Australian Dollar (AUD) Cash - Great British Pound (GBP) TOTAL 32,109,546.18 98.72 54,116.31 360,167.67 0.17 1.11 32,523,830.16 100.00 (2) TRANSACTIONS AND BROKERAGE There were 29 (2020: 32) transactions in securities during the year on which brokerage of $6,340 (2020: $9,430) was paid. Global Masters Fund Limited Global Masters Fund Limited 34 34 Global Masters Fund Limited 35 SHAREHOLDER INFORMATION The Shareholder information set out below was applicable as at 16 August 2021. 1. TWENTY LARGEST SHAREHOLDERS 2. DISTRIBUTION OF SECURITIES 121,631 1.1% 3. SUBSTANTIAL SHAREHOLDINGS Shareholders Last year’s figures Ordinary Shares % CITICORP NOMINEES PTY LIMITED 5,755,623 53.7% BOND STREET CUSTODIANS LIMITED 280,000 2.6% EMSDALE HOLDINGS PTY LTD 270,000 2.5% BOND STREET CUSTODIANS LIMITED ROSETTA PTY LTD POSEIDON NOMINEES PTY LTD JACOBEAN PTY LTD PETER I H WONG PTY LTD J P MORGAN NOMINEES AUSTRALIA PTY LIMITED VAL GARDENA PTY LTD J BARLOW CONSULTANTS PTY LTD MUNGER PTY LTD CELLAR STOCKS PTY LTD MCCARRUMS PTY LTD MR PETER LEECE ABBAWOOD NOMINEES PTY LTD MRS JANINE ROSLYN HUCKER MRS SYLVIA MARIA VALMADRE BOND STREET CUSTODIANS LIMITED MR WILLIAM PAUL CHUN TIE & MS ORLEENA MOO 180,000 1.7% 155,700 1.5% 150,000 1.4% 130,000 1.2% 107,588 1.0% 107,021 102,317 1.0% 1.0% 101,247 0.9% 100,000 0.9% 90,000 0.8% 77,937 0.7% 67,251 0.6% 60,765 60,000 0.6% 0.6% 51,981 0.5% 50,778 0.5% Distributions 1 1,001 5,001 10,001 to to to to 100,001 Total 1,000 5,000 10,000 100,000 and over Holdings of less than a marketable parcel No. of % of Shareholders shares held 0.58% 4.68% 6.39% 18.76% 69.58% 100.00% 117 162 88 78 12 457 12 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 AM * Number of Shares % of Total 5,761,311 53.7 * Has the power to control voting and/or the disposal of securities in accordance with a Power Of Attorney in relation to 5,755,061 shares. 4. VOTING RIGHTS 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. Total 8,019,839 74.8% 5. ON-MARKET BUY BACK There is no current on-market buy back. INVESTMENTS (1) HOLDINGS OF SECURITIES AT 30 JUNE 2021 Individual investments at 30 June 2021 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. Company Shares Market Value $ % ABC AHT BEG BIPCFB BNZL BRK.A BRK.B CBG CLIN CPG DOM DPLM GPPGF FEVR FOUR FSI GAMA GAW HLMA HSV JD JIM LIO NG NWF REL RMV SCT SMS SPX TET XPP YOU ORDINARY SHARES ABCAM PLC ASHTEAD GROUP PLC BEGBIES TRAYNOR GROUP PLC BIP BCI Worldwide Flexible Fund Class B BUNZL PLC Berkshire Hathaway Inc. A Stock Berkshire Hathaway Inc. B Stock CLOSE BROTHERS GROUP PLC CLINIGEN GROUP PLC COMPASS GROUP PLC DOMINO'S PIZZA GROUP PLC DIPLOMA PLC Global Positive Peace Growth Fund FEVERTREE DRINKS PLC 4IMPRINT GROUP PLC Flagship Investments Limited GAMMA COMMUNICATIONS PLC GAMES WORKSHOP GROUP PLC HALMA PLC HOMESERVE PLC JD SPORTS FASHION PLC JARVIS SECURITIES PLC LIONTRUST ASSET MANAGEMENT PLC NATIONAL GRID PLC NWF GROUP PLC RELX PLC RIGHTMOVE PLC SOFTCAT PLC SMART METERING SYSTEMS PLC SPIRAX-SARCO ENGINEERING PLC TREATT PLC XP POWER LIMITED YOUGOV PLC CASH (INCLUDING DIVIDENDS RECEIVABLE) Cash- Australian Dollar (AUD) Cash - Great British Pound (GBP) 6,000 6,500 20,000 15,797,997.7392 6,000 27 15,299 10,000 11,000 6,500 30,000 7,000 419,224 3,000 1,600 1,129,000 4,000 1,600 4,800 6,000 14,000 58,400 12,335 13,300 20,000 7,500 32,000 8,000 12,000 1,381 6,468 2,000 8,000 152,835.93 643,106.15 50,170.62 1,602,433.56 264,391.77 15,073,354.09 5,670,596.19 279,442.96 125,592.55 182,477.17 215,032.74 374,951.58 508,015.64 142,377.57 78,944.94 2,709,600.00 146,822.84 336,438.26 238,339.94 105,745.64 237,314.40 270,913.95 427,737.71 225,890.25 77,469.34 265,470.81 383,303.51 262,067.69 192,345.29 346,810.20 139,584.25 205,847.09 174,121.55 32,109,546.18 54,116.31 360,167.67 0.47 1.98 0.15 4.93 0.81 46.35 17.44 0.86 0.39 0.56 0.66 1.15 1.56 0.44 0.24 8.33 0.45 1.03 0.73 0.33 0.73 0.83 1.32 0.69 0.24 0.82 1.18 0.81 0.59 1.07 0.43 0.63 0.52 98.72 0.17 1.11 TOTAL 32,523,830.16 100.00 (2) TRANSACTIONS AND BROKERAGE There were 29 (2020: 32) transactions in securities during the year on which brokerage of $6,340 (2020: $9,430) was paid. Global Masters Fund Limited 34 Global Masters Fund Limited 35 35 Global Masters Fund Limited NOTES NOTES Global Masters Fund Limited Global Masters Fund Limited 36 36 Global Masters Fund Limited 37 NOTES NOTES Global Masters Fund Limited Global Masters Fund Limited 36 37 37 Global Masters Fund Limited 38Global Masters Fund Limited CORPORATE DIRECTORY GLOBAL MASTERS FUND LIMITED ABN 84 109 047 618 REGISTERED IN NEW SOUTH WALES 12 MAY 2004. BOARD OF DIRECTORS Murray H d’Almeida Non-Executive Chairman Dr Emmanuel (Manny) C Pohl AM Managing Director Patrick Corrigan AM Non-Executive Director Jason Pohl Alternate Director Angela Obree Alternate Director COMPANY SECRETARY Scott Barrett REGISTERED OFFICE Level 12 Corporate Centre One 2 Corporate Court BUNDALL QLD 4217 Toll Free: 1800 352 474 Tel: +61 (0) 7 5644 4400 Fax: +61 (0) 7 5574 1457 POSTAL ADDRESS P O Box 7536 Gold Coast Mail Centre BUNDALL QLD 9726 AUDITORS Connect National Audit Pty Ltd Level 9 Wyndham Corporate Centre 1 Corporate Court BUNDALL QLD 4217 INVESTMENT MANAGER EC Pohl & Co Pty Ltd ACN 154 399 916 Level 12 Corporate Centre One 2 Corporate Court BUNDALL QLD 4217 Tel: +61 (0) 7 5644 4400 Fax: +61 (0) 7 5574 1457 SHARE REGISTRY Boardroom Pty Limited GPO Box 3993 SYDNEY NSW 2001 Toll Free: 1300 737 760 International: +61 (0) 2 9290 9600 Fax: +61 (0) 0 9279 0664 Email: enquiries@boardroomlimited.com.au SOLICITORS McCullough Robertson Lawyers Level 32 MLC Centre 19 Martin Place SYDNEY NSW 2000 WEBSITE ADDRESS www.globalmastersfund.com.au FOLLOW US /GlobalMastersFund /global-masters-fund 39Global Masters Fund Limited CORPORATE DIRECTORY GLOBAL MASTERS FUND LIMITED ABN 84 109 047 618 REGISTERED IN NEW SOUTH WALES 12 MAY 2004. BOARD OF DIRECTORS Murray H d’Almeida Non-Executive Chairman Dr Emmanuel (Manny) C Pohl AM Managing Director Patrick Corrigan AM Non-Executive Director Jason Pohl Alternate Director Angela Obree Alternate Director COMPANY SECRETARY Scott Barrett REGISTERED OFFICE Level 12 Corporate Centre One 2 Corporate Court BUNDALL QLD 4217 Toll Free: 1800 352 474 Tel: +61 (0) 7 5644 4400 Fax: +61 (0) 7 5574 1457 POSTAL ADDRESS P O Box 7536 Gold Coast Mail Centre BUNDALL QLD 9726 AUDITORS Connect National Audit Pty Ltd Level 9 Wyndham Corporate Centre 1 Corporate Court BUNDALL QLD 4217 INVESTMENT MANAGER EC Pohl & Co Pty Ltd ACN 154 399 916 Level 12 Corporate Centre One 2 Corporate Court BUNDALL QLD 4217 Tel: +61 (0) 7 5644 4400 Fax: +61 (0) 7 5574 1457 SHARE REGISTRY Boardroom Pty Limited GPO Box 3993 SYDNEY NSW 2001 Toll Free: 1300 737 760 International: +61 (0) 2 9290 9600 Fax: +61 (0) 0 9279 0664 Email: enquiries@boardroomlimited.com.au SOLICITORS McCullough Robertson Lawyers Level 32 MLC Centre 19 Martin Place SYDNEY NSW 2000 WEBSITE ADDRESS www.globalmastersfund.com.au FOLLOW US /GlobalMastersFund /global-masters-fund 40Global Masters Fund Limited ABN 84 109 047 618 Level 12, Corporate Centre One 2 Corporate Court BUNDALL QLD 4217 www.globalmastersfund.com.au

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