BH GLOBAL LIMITED
INTERIM MANAGEMENT STATEMENT
FOR THE PERIOD FROM 1 JULY 2014 TO 14 NOVEMBER 2014
YOUR ATTENTION IS DRAWN TO THE DISCLAIMER AT THE END OF THIS DOCUMENT
BH GLOBAL LIMITED
INTERIM MANAGEMENT STATEMENT
T +44 (0)20 7022 6250 www.brevanhoward.com
Overview and Objective BH Global Limited ("BHG" or the "Company") is a closed-ended
investment company, registered and incorporated in Guernsey on 25
February 2008 (Registration Number: 48555).
With effect from 1 September 2014, BHG changed its investment policy,
such that it no longer invests in Brevan Howard Global Opportunities
Master Fund Limited ("BHGO") but instead invests all its assets (net
of short-term working capital) in Brevan Howard Multi-Strategy Master
Fund Limited ("BHMS" or the "Fund") a company also managed by Brevan
Howard Capital Management LP ("BHCM").
Prior to 1 September 2014, BHGO invested all of its assets, net of
cash retained for short-term working capital and efficient portfolio
management, in investment funds of which one or more of the Brevan
Howard group of affiliated entities is the manager or investment
manager.
BHG was admitted to the Official List of the UK Listing Authority and
to trading on the Main Market of the London Stock Exchange on 29 May
2008.
This Interim Management Statement covers the period from 1 July 2014
to the date of its publication.
Company Size The total net assets of BHG are summarised as follows:
Share 30 30 June 30 30 June
Class September 2014 Change in September 2014
2014 Net 2014
Currency: Assets In
Currency: USD (mm) In Currency
USD (mm) 30 June Currency of Class
2014 to of Class (mm)
30 (mm)
September
2014
Currency:
USD (mm)
USD 91.5 90.0 1.6 91.5 90.0
Shares
EUR - 221.6 -221.6 - 161.9
Shares*
GBP 610.8 654.1 -43.3 376.8 382.6
Shares
Total 702.4 965.7 -263.3 - -
Source: Northern Trust International Fund Administration Services
(Guernsey) Limited ("Northern Trust")
Figures are rounded to one decimal place.
* All EUR Shares were redeemed on 22 August 2014 following the Euro
class closure.
Share Capital
The number of shares in issue in each share class of BHG is summarised
as follows:
Share 13 November 30 30 June 2014
Class 2014** September
2014
USD Shares 6,755,342 6,835,001 6,867,652
EUR - - 12,456,014
Shares*
GBP Shares 27,620,187 27,799,136 28,877,578
Source: Northern Trust.
* All EUR Shares were redeemed on 22 August 2014 following the Euro
class closure.
** 13 November 2014 being the latest practicable date prior the date
of this Interim Management Statement.
Performance Review
The closing share price* of each share class of BHG is summarised as
follows:
Share Class 13 November 30 30 June 2014
2014*** September
2014
USD Shares 12.075 12.15 12.00
(US$)
EUR Shares - - 12.475
(€)**
GBP Shares 12.18 12.20 11.96
(£)
Source: Bloomberg
** All EUR Shares were redeemed on 22 August 2014 following the Euro
class closure.
The NAV per share* of each share class of BHG is summarised as
follows:
Share Class 7 November 30 30 June 2014
2014**** September
2014
USD Shares 13.31 13.39 13.10
(US$)
EUR Shares - - 13.00
(€)**
GBP Shares 13.48 13.55 13.25
(£)
* NAV performance is provided for information purposes only. Shares
in BHG do not necessarily trade at a price equal to the prevailing
NAV per Share.
** All EUR Shares were redeemed on 22 August 2014 following the Euro
class closure.
*** 13 November 2014 being the latest practicable date prior to the
date of this Interim Management Statement.
**** Estimated as at 7 November 2014, such date being the most
recent date for which an estimated NAV for the Company has been
published. The relevant final month-end NAVs may be materially
different from these estimated weekly values, which should only be
taken as indicative values provided for information only and no
reliance should be placed on them. Estimated results, performance or
achievements may differ materially from any actual results,
performance or achievements.
Source: BHG's NAV per Share data is provided by BHG's Administrator,
Northern Trust. BHG's NAV data in this report is unaudited and net
of all investment management fees and all other fees and expenses
payable by BHG.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS
Allocation Review
The changes to BHG underlying investment exposures are summarised in
the tables below.
BHG Underlying Investment Exposures:
Allocation as % of BHG assets
Fund 30 30 June
September 2014
2014
Brevan Howard Master Fund Limited 41.8% 53.8%
Brevan Howard Asia Master Fund 7.0% 10.1%
Limited
Brevan Howard Credit Catalysts 14.2% 17.0%
Master Fund Limited
Brevan Howard Commodities 4.4% 6.5%
Strategies Master Fund Limited
Brevan Howard Systematic Trading 6.0% 8.0%
Master Fund Limited
Brevan Howard Emerging Markets 2.8% 3.5%
Local Fixed Income Leveraged
Master Fund Limited
Brevan Howard Credit Value Master 0.5% 2.6%
Fund Limited
Direct investment portfolio 18.1% -
Cash/Other 5.2% -1.6%
Source: BHCM
Figures are rounded to one decimal place. Therefore in some
instances the total may not equal 100.0%.
Allocation by strategy exposure:
BHG strategy exposure, % of total
VaR, excluding cash exposure:
30 September 30 June 2014
2014
Fixed 20% 22%
Income
Vega 14% 10%
Equity 21% 14%
Credit 8% 11%
FX 32% 13%
Commodities 5% 30%
Source: BHCM
Calculated using historical simulation based on a 1 day, 95%
confidence interval. Figures are rounded to the nearest whole
number. Therefore in some instances the total may not equal 100%.
Further detail of monthly performance information and the outlook of
BHG can be obtained from BHG's Shareholder Reports, copies of which
are to be found on BHG's website: www.bhglobal.com
Material Events and
Transactions
Change in investment policy
Prior to 1 September 2014, BHG invested all of its assets (net of
short-term working capital) in the ordinary shares of BHGO.
Following shareholder approval on 28 August 2014, with effect 1
September 2014, BHG changed its investment policy to invest all of
its assets (net of short-term working capital) in BHMS.
The investment objective of BHMS is to generate consistent long-term
appreciation through active, direct and indirect, leveraged trading
and investment on a global basis in multiple investment strategies.
BHMS employs an investment process which uses a combination of (a)
allocations to investment funds managed or investment managed by
Brevan Howard or affiliated entities ("BH"); and (b) targeted and
opportunistic allocations directly to the traders of BH investment
managers.
BHG has also simplified its fee arrangements with its manager, BHCM.
Prior to 1 September 2014, BHG paid its manager a 0.5% management
fee p.a. and was indirectly subject to the management and
performance fees charged to the underlying funds in which BHGO
invested.
With effect 1 September 2014, BHG pays its manager a 2% management
fee p.a. and a 20% performance fee (subject to a high water mark)
and bears no additional manager fees at underlying fund level. This
means that BHG's manager has assumed the netting risk across BHG's
underlying fund investments i.e. investors in BHG only pay fees at
one level on the aggregate performance of BHMS and not per
individual underlying investment of BHMS.
Further details on the changes described above can be found on BHG's
website: www.bhglobal.com.
Class Closure
Following the Euro class closure process, the redemption price per
share for the remaining Euro Shares was announced on 22 August 2014.
With the announcement of the redemption price, all Euro Shares were
redeemed and the proceeds of redemption were paid in the week
commenced 1 September 2014.
On 22 August 2014, the Company also cancelled all Euro Treasury
Shares.
Discount Management
In the period between 1 July 2014 and 13 November 2014 being the
latest practicable date prior to the date of this Interim Management
Statement, BHG purchased the following numbers of shares on the
market in accordance with its ongoing discount management policy:
Share Class Shares purchased on
market between 1
July 2014 and 13
November 2014
USD Shares 531,034
GBP Shares 1,011,418
EUR Shares [Nil]
Source: Northern Trust
In accordance with the terms of BHG's discount management policy,
these purchases have only been made on the market at prices below
the estimated prevailing NAV per Share in circumstances that have
resulted in an increase in the NAV per Share of the remaining Shares
and after purchase the purchased Shares have either been held in
treasury by BHG or cancelled.
Board Statement
The board of directors of the Company is not aware of any other
significant events or transactions that have occurred between 1 July
2014 and the publication of this Interim Management Statement which
would have a material impact on the financial position of the
Company.
Enquiries Northern Trust International Fund Administration Services (Guernsey)
Limited
Andrew Maiden +44 (0) 1481 745 368
Important Legal Information and Disclaimer
BH Global Limited ("BHG") is a feeder fund investing in Brevan
Howard Multi-Strategy Master Fund Limited (the "Fund"). Brevan Howard Capital
Management LP ("BHCM") has supplied certain information herein regarding BHG's
and the Fund's performance and outlook.
The material relating to BHG and the Fund included in this report
is provided for information purposes only, does not constitute an invitation
or offer to subscribe for or purchase shares in BHG or the Fund and is not
intended to constitute "marketing" of either BHG or the Fund as such term is
understood for the purposes of the Alternative Investment Fund Managers
Directive as it has been implemented in states of the European Economic Area.
This material is not intended to provide a sufficient basis on which to make
an investment decision.
Any estimates may be subject to error and significant fluctuation,
especially during periods of high market volatility or disruption. Any
estimates should be taken as indicative values only and no reliance should be
placed on them. Estimated results, performance or achievements may materially
differ from any actual results, performance or achievements. Except as
required by applicable law, BHG, the Fund and BHCM expressly disclaim any
obligations to update or revise such estimates to reflect any change in
expectations, new information, subsequent events or otherwise.
Tax treatment depends on the individual circumstances of each
investor in BHG and may be subject to change in the future. Returns may
increase or decrease as a result of currency fluctuations.
You should note that, if you invest in BHG, your capital will be at
risk and you may therefore lose some or all of any amount that you choose to
invest. This material is not intended to constitute, and should not be
construed as, investment advice. All investments are subject to risk. You are
advised to seek expert legal, financial, tax and other professional advice
before making any investment decisions.
THE VALUE OF INVESTMENTS CAN GO DOWN AS WELL AS UP. YOU MAY NOT GET
BACK THE AMOUNT ORIGINALLY INVESTED AND YOU MAY LOSE ALL OF YOUR INVESTMENT.
PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE RESULTS