Convertible Notes Conversion Steady at $3.10; LTV Ratio Strong at 9.36%

Quarterly Convertible Note Activity

Global Masters Fund Limited (ASX, GFL) has released its quarterly report for the period ending 31 December 2025, providing a clear snapshot of its convertible notes status and overall financial health. During the quarter, 303,665 of its redeemable unsecured convertible notes were converted into ordinary shares, reflecting ongoing investor confidence and active capital management.

Stable Conversion Price and Capital Structure

The conversion price for these notes remains unchanged at $3.10 per share, indicating stability in the fund’s valuation metrics and a consistent approach to shareholder value. This steady conversion price also suggests that the fund has not faced significant market pressures that would necessitate adjustments.

Robust Loan-to-Value Ratio

One of the standout metrics in this report is the loan-to-value (LTV) ratio, which sits at a conservative 9.36%. This ratio is calculated by taking the total debt less cash and cash equivalents, divided by the market value of all marketable securities held. With total debt at approximately $8.3 million, cash and equivalents at $2.6 million, and marketable securities valued at over $60.6 million, the fund demonstrates a strong buffer against financial risk.

Compliance and Regulatory Standing

The issuer has confirmed full compliance with all terms of the convertible notes, the trust deed, and relevant provisions of the Corporations Act 2001. No events occurred during the quarter that would trigger immediate repayment or enforcement actions, nor were there any material changes to the nature of the business or security interests. This compliance reassures investors about the fund’s governance and operational stability.

Outlook and Market Implications

While the report does not provide forward-looking guidance, the low LTV ratio combined with active note conversions suggests that Global Masters Fund is managing its capital structure prudently. Investors will likely view this as a positive sign of financial discipline and resilience, especially in a market environment where volatility can impact investment funds.