BH Global Limited Sale from Treasury

 
TIDMBHGG TIDMBHGU 
 
BH Global Limited 
                                (the "Company") 
  (a closed-ended collective investment scheme established as a company with 
  limited liability under the laws of Guernsey with registered number 48555) 
 
                           LEI: 549300BIIO4DTKEMXV14 
 
                        Investment Management Agreement 
 
                                22 January 2021 
 
                    THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION 
 
The Board of Directors of BH Global Limited notes the receipt this morning of a 
letter from the General Partner of its manager, Brevan Howard Capital 
Management Limited, the text of which is set out in full below. The Board will 
consider the matters raised therein, and make any further announcement as 
appropriate in due course. 
 
Letter from Brevan Howard Capital Management LP to BH Global Limited 
 
The Board of Directors (the "Board") 
BH Global Limited (the "Company") 
PO Box 255 
Trafalgar Court 
Les Banques 
St Peter Port 
Guernsey GY1 3QL 
Channel Islands 
 
22 January 2021 
 
Dear Directors 
 
Further to discussions between us which started in the first half of last year, 
we write to set out clearly our position as the manager (the "Manager") of the 
Company. 
 
Since its launch in 2008, the Company has had a strong track record, performing 
similarly to equity markets with significantly lower volatility and with a 
history of delivering higher performance when equity markets have declined. 
Since launch until the end of 2020, the largest share class of the Company has 
had an annualised rate of return of 5.5%, an information ratio of 0.92 and a 
total return of 96.2%, with an annualised volatility of 5.9%. Over the same 
period1: 
 
  * MSCI World Index had an annualised rate of return of 6.7%, an information 
    ratio of 0.4 and a total return of 126.1%, with an annualised volatility of 
    16.8%. 
 
  * The FTSE 100 had an annualised rate of return of 4.2%, an information ratio 
    of 0.29 and a total return of 68.6%, with an annualised volatility of 
    14.3%. 
 
The Company has exhibited low correlation to other asset classes, creating true 
diversification for portfolios, a quality that was amply demonstrated during 
the market turbulence of 2020. The Company offers investors unique access, via 
Brevan Howard Multi-Strategy Master Fund Limited (the "Master Fund") to a range 
of the world's leading hedge funds and portfolio managers, an opportunity which 
has demonstrated its quality over more than a decade. 
 
As the Board will be aware from recent discussions and meetings, we have 
invested heavily across a number of areas in building Brevan Howard in recent 
years as we look to invest for the future and seek to maintain and develop an 
industry-leading business. While we continue to invest significantly in 
attracting and developing the best possible talent and also strengthening our 
technology, systems and infrastructure that support them, it is essential that 
we are supported by all of our investors, via their respective fee structures, 
to maintain the quality of our platform. Noting the exceptional performance of 
the Master Fund, the substantial ongoing investment and the increasingly 
competitive environment, we have concluded that the management fee concessions 
agreed in 2016 and 2017 no longer support the future success of the Company. We 
therefore propose that these concessions be withdrawn and the fixed component 
of the fee paid to the Manager is adjusted back to its prior level of 2% per 
annum, the fee level that was paid by the Company from 2014. 
 
These terms (the "Proposed New Terms") represent the minimum level for us to 
continue to manage the Company as we build for the future in competition with 
our industry peers. We believe that the reversion of the fixed fee to the level 
that applied previously will give us the needed flexibility to manage and grow 
the Company. 
 
We request that the Board convene an extraordinary general meeting ("EGM") of 
shareholders as soon as practicable to consider approving the Proposed New 
Terms by way of a notice of EGM with a circular setting out details of the 
proposal (the "Notice and Circular"). We would welcome the opportunity to work 
with the Board and its advisors to assist in the production of the Notice and 
Circular. 
 
In the event that the Notice and Circular are not published on or before 17 
February 2021, except in the case of delay attributable to any necessary 
regulatory steps being completed, the Manager intends to serve notice of 
termination of the Management Agreement with the Company and the Company's 
investment in the Master Fund will be redeemed. 
 
The implementation of the Proposed New Terms will allow us to strengthen and 
grow the Company. We sincerely hope that shareholders provide support to the 
Proposed New Terms and permit us the opportunity to continue to manage the 
Company for the remainder of 2021 and beyond. 
 
Yours sincerely 
 
For and on behalf of Brevan Howard Capital Management Limited in its capacity 
as general partner of Brevan Howard Capital Management LP 
 
1 Company's performance and statistics calculated using monthly NAV per share 
data of the Sterling share class. Launch date: 22 May 2008. "MSCI World Index" 
and "FTSE 100" performance and statistics calculated using monthly returns of 
MSCI World Net Total Return USD Index and FTSE 100 Total Return Index GBP, 
Source Bloomberg. Annualised rate of return, volatility and information ratio 
calculations are based on monthly returns. 
 
Company website:  www.bhglobal.com 
 
Enquiries: 
 
Sir Michael Bunbury 
Chairman 
 
David Yovichic 
Investec Bank Limited 
020 7597 5970 
 
 
 
END
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