Low LTV Ratio Keeps Global Masters Fund’s Convertible Notes Secure—For Now

Quarterly Convertible Note Activity

Global Masters Fund Limited (ASX – GFL) has provided its quarterly report for the period ending 30 June 2025, offering investors a clear snapshot of its convertible note status and financial health. During the quarter, 64,587 of its redeemable unsecured convertible notes were converted into ordinary shares, maintaining the conversion price at $3.10. This steady conversion activity signals ongoing investor confidence in the fund’s capital structure and share value.

Robust Loan-to-Value Ratio

The fund’s loan-to-value (LTV) ratio, a key indicator of leverage and risk, remains low at 10.71%. This figure is derived by comparing net debt (total debt less cash and equivalents) against the market value of all marketable securities held. With total debt at approximately $9.33 million, offset by $2.75 million in cash, and securities valued at over $61 million, the fund demonstrates a conservative approach to borrowing relative to its asset base.

Compliance and Stability

Importantly, the report confirms that Global Masters Fund has complied fully with all terms of the convertible notes, the governing trust deed, and relevant sections of the Corporations Act. There were no events during the quarter that triggered immediate repayment or enforcement of the notes, nor any material changes to the nature of the business or guarantor arrangements. This regulatory and operational stability provides reassurance to note holders and investors alike.

Outlook and Market Implications

While the report does not offer forward-looking guidance, the combination of steady note conversions, a low LTV ratio, and full compliance suggests that Global Masters Fund is managing its capital structure prudently. Investors will be watching future quarters for any shifts in conversion activity or leverage that might signal changes in strategy or market conditions.