Global Masters Fund Limited reported a half-year net loss despite a modest increase in operating revenue, impacted by currency fluctuations and portfolio underperformance. No dividend was declared as the fund focuses on long-term capital growth.
- Operating revenue increased 17% to $174,339
- Net loss after tax widened to $760,617
- Net tangible assets per share fell 4.3% to 479.5 cents
- Investment performance marginally positive at 0.1%, lagging MSCI AUD index
- No dividend declared due to Berkshire Hathaway investment nature
Half-Year Financial Overview
Global Masters Fund Limited (GFL) has released its half-year results for the period ending 31 December 2025, revealing a mixed performance. Operating revenue rose by 17% to $174,339, reflecting some positive momentum. However, the fund recorded a net loss after tax of $760,617, a significant deterioration compared to the prior corresponding period. This loss was driven by a combination of portfolio underperformance and adverse currency movements.
Portfolio Performance and Currency Impact
The fund’s investment portfolio delivered a modest positive return of 0.1% over the six months, which notably lagged the MSCI Index in Australian dollars that rose 8.4%. Berkshire Hathaway Inc Class A shares, a major holding, increased by 3.6% in US dollars but the strengthening Australian dollar eroded these gains when converted back to AUD. Additionally, the UK portfolio experienced a decline, contributing to a $366,805 reduction in net profit after tax compared to the previous period.
Net Tangible Assets and Expenses
Net tangible assets (NTA) per share decreased by 4.3% to 479.5 cents, down from 500.9 cents at the end of June 2025. This decline was attributed to portfolio performance, foreign exchange headwinds, expenses related to convertible notes, and income tax charges. The report highlights that FX movements alone accounted for a 4.9 cents per share reduction, underscoring the sensitivity of the fund’s returns to currency fluctuations.
Dividend Policy and Long-Term Focus
Consistent with past practice, GFL did not declare a dividend for the half-year period. The fund’s major investment in Berkshire Hathaway, which traditionally does not pay dividends, underpins this policy. Instead, the company emphasises long-term capital growth, pointing to its 10-year and since inception annualised returns of 12.9% and 9.4% respectively as key performance indicators for investors.
Looking Ahead
While the short-term results show challenges, particularly from currency and regional portfolio pressures, the fund’s long-term track record remains robust. Investors will be watching closely how GFL navigates ongoing market volatility and currency risks, as well as the impact of convertible note expenses on future profitability.
Bottom Line?
Global Masters Fund’s half-year results underscore the challenges of currency volatility and portfolio mix, setting the stage for a critical period ahead.
Questions in the middle?
- How will ongoing currency fluctuations affect GFL’s portfolio returns in the next half?
- What strategies might GFL employ to mitigate convertible note expenses impacting earnings?
- Will the UK portfolio’s performance improve to support a return to profitability?