AS TRUSTEE FOR
GLOBAL EQUALITIES FUND
Welcome to Global Equalities Fund
A new direction to improving the world's financial markets
“As a practical capitalist, I admit to a serious case of theoretical socialism. The reason I am an unashamed capitalist is that I firmly believe people should be rewarded if they work harder, create things, pioneer new concepts, add value to assets, risk their time and capital, create employment, sign guarantees on loans.
The other reason I’m a practical capitalist is that real socialism must inevitably fail for the same reason capitalism is flawed – human nature. All historical attempts at socialism have resulted in lost freedom, less efficiency, and some being more equal than others.
The reason I’m a theoretical socialist is that the financial markets need more balance, less volatility, and the world’s population needs more financial equality. We’re constantly at war because of poverty, not ideology. For the sake of a few major commercial whales, the world is enabling the continuing repression of an obscene proportion of the population.
If you want peace, raise the standard of living – for everyone. Peaceful communities – those with equal opportunity for all, rights of free speech, quality infrastructure – have an intelligent, comfortable, healthy socio-economic middle class, and a very small lower class.
We need to fix this. What we need is a return to the united village, but now, with the benefit of modern technology, it can be the global village.
For our part, we’ve designed a system which makes capital more efficient, and encourages the use of capital to adding value throughout the world. Our system is fairer, and is designed to encourage enterprise, maintain the laissez-faire capitalist system, whilst lowering the gap between rich and poor.
We replace taxation with a sustainable dividend and corporate re-investment formula, married with equality-centric projects and long term sustainable investments.
We reject multi-leveraging of capital using artificial systems, we reject multi-level securitisation, we reject unethical participants.
We utilise TecBanc data systems and protocols, and the ClubMaster membership system. Everyone we deal with is identifiable, traceable, real.
Please join us.”
Michael Reid
Executive Chairman
Global Equalities Fund
The Principles of the Global Equalities Fund
A snapshot of how the GEF operatesGEF is a not-for-profit organisation designed to re-engineer the financial distribution of wealth in a fair and methodical manner.
One of our goals is to recalibrate the value of inactive capital, which we define as non-value-adding capital (NVA Capital), and semi-passive capital (SP Capital).
NVA Capital is capital which is invested in a GEF deposit account, and is both 100% secured and risk-free by not being utilised for lending or trading purposes. We believe that NVA Capital should have a prescribed return which is significantly below the potential return from capital which is applied to adding value, such as business investment, property development, or infrastructure investment.
SP Capital is capital which is invested in a GEF loan account, and is not directly invested into value-adding investment. SP Capital has different categories which reflect return on risk. These are:
- secured by primary charge against real property to specified loan to value ratios (LVR’s);
- secured by secondary charge against real property to higher LVR’s – called Mezzanine Funds;
- secured by primary charge against secondary assets; and
- unsecured.
The return on SP Capital is based on a simple risk-reward ratio, and is assessed based on the rating of the borrower. Our current benchmark ranges (being margins above the NVA Capital rate) are noted below.
GEF does not support market manipulation, and will (knowingly) neither participate in nor support hedge funds.
A Return to a Nil Base Value on Capital
The GEF approach to Taking DepositsCURRENT DEPOSIT RATES
Our current benchmark NVA Capital value is 0.00% per annum, meaning it returns a fixed return of 0.00% per annum on deposit funds invested in GEF.
GEF earnes no fees on NVA Capital.
A Return to Sensible Lending Practices
The GEF Lending structureSP Capital is capital which is invested in a GEF loan account, and is not directly invested into value-adding investment. SP Capital has different categories which reflect return on risk. These are:
- A Grade – real estate 1st Mortgage – maximum 75% LVR;
- B Grade – real estate 2nd Mortgage – maximum 85% LVR;
- C Grade – 1st Charge over secondary assets; and
- D Grade – unsecured.
The return on SP Capital is based on a simple risk-reward ratio, and is assessed based on the rating of the borrower.
CURRENT LENDING RATES
Our current benchmark ranges (being margins above the NVA Capital rate) are as follows:
- A Grade – 2.00% to 4.00% pa;
- B Grade – 4.00% to 6.00% pa;
- C Grade – 6.00% to 8.00% pa; and
- D Grade – 8.00% to 10.00% pa.
GEF receives 0.25% of all loan margins to cover management and administration, otherwise all returns are paid to the owner of the capital.
Global Equalities Projects
Applying profits to specific projects to aid global equalityIMMEDIATE EFFECT INVESTING
Our project selections concentrate on projects which provide an immediate upliftment to global citizens, with a broad allocation of 50% in the country of source, and 50% elsewhere in the world where the need is greatest and the reults most sustainably effective.
Examples of Global Equalities projects might be:
- Water and Sanitation
- Energy
- Communications
- Health
- Education
- Law and Order
Our objective is to ensure that all these pillars are being introduced to the region.
Taking Companies Out of the Corporate Tax System
Now approved by the Australian Federal GovernmentCOMMIT YOUR COMPANY
We invite companies to commit to Global Equality, by committing to a world-saving formula for the allocation of profits. With 50% of profits allocated to the GEF, you will be replacing corporate tax with a more sustainable and controlled distribution of profits. We will invest 25% (ie. Half of the 50%) back into government services in the region of profit domicile, subject to the government agreeing to exempt that company from profits tax.
10.00% paid as franked (tax free) dividends to company shareholders
40.00% reinvested in growth of the company
25.00% invested in government services in the country of operation
15.00% directly applied to Global Equality projects
7.50% injected in the GEF Investment Fund
2.50% paid to GEF management and administration