BH CREDIT. $ ORD RED SHS NPV $ 
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BH CREDIT CATALYSTS LIMITED
MONTHLY SHAREHOLDER REPORT ADV03902 CONFIDENTIAL DO NOT COPY OR DISTRIBUTE
Your attention is drawn to the disclaimer at the beginning and end of this document | |||
Important Legal Information and Disclaimer BH Credit Catalysts Limited ("BHCC") is a feeder fund which invests in Brevan Howard Credit Catalysts Master Fund Limited (the "Fund"). DW Investment Management, LP ("DWIM"), Brevan Howard Asset Management LLP ("BHAM") and Brevan Howard Capital Management LP ("BHCM" and BHCM together with BHAM, "Brevan Howard") have supplied the information herein regarding BHCC's and the Fund's performance and outlook. BHAM is authorised and regulated by the Financial Services Authority (the "FSA") of the United Kingdom. This material constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 and the handbook of rules and guidance issued from time to time by the FSA (the "FSA Rules"). The material relating to BHCC and the Fund included in this report has been prepared by DWIM and Brevan Howard and is provided for information purposes only and does not constitute an invitation or offer to subscribe for or purchase shares in BHCC or the Fund. This material is not intended to provide a sufficient basis on which to make an investment decision. Information and opinions presented in this material relating to BHCC and the Fund have been obtained or derived from sources believed by DWIM and Brevan Howard to be reliable, but DWIM and Brevan Howard make no representation as to their accuracy or completeness. Estimated results, performance or achievements may materially differ from any actual results, performance or achievements. Except as required by applicable law, BHCC, the Fund, DWIM and Brevan Howard expressly disclaim any obligations to update or revise such estimates to reflect any change in expectations, new information, subsequent events or otherwise. All investments are subject to risk. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decisions. Tax treatment depends on the individual circumstances of each investor in BHCC 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 BHCC, 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. Potential investors in BHCC should seek their own independent financial advice. BHAM neither provides investment advice to, nor receives and transmits orders from, investors in BHCC nor does it carry on any other activities with or for such investors that constitute "MiFID or equivalent third country business" for the purposes of the FSA Rules. PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE RESULTS | |||
| BH Credit Catalysts Limited
Manager:
Brevan Howard Capital Management LP ("BHCM") Administrator: Northern Trust International Fund Administration Services (Guernsey) Limited ("Northern Trust") Corporate Brokers: J.P. Morgan Securities Ltd Dexion Capital Plc Listing: London Stock Exchange (Premium Listing) |
Overview BH Credit Catalysts Limited ("BHCC") is a closed-ended investment company, registered and incorporated in Guernsey on 19 October 2010 with an unlimited life (Registration Number: 52520). The manager of BHCC is Brevan Howard Capital Management LP ("BHCM"). BHCC invests all of its assets (net of short-term working capital) in the ordinary shares of Brevan Howard Credit Catalysts Master Fund Limited (the "Fund"). The investment manager of the Fund is DW Investment Management, LP ("DWIM"). BHCC was admitted to the Official List of the UK Listing Authority and to trading on the main market of the London Stock Exchange on 14 December 2010. Total Assets:$185.5mm11. As at 30 November 2012 by BHCC's administrator, Northern Trust. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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NAV Performance (%)
ASC 820 Asset Valuation Categorisation* |
BH Credit Catalysts Limited NAV per share (as at 30 November 2012)
NAV performance is provided for information purposes only. Shares in BHCC do not necessarily trade at a price equal to the prevailing NAV per Share. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS Brevan Howard Credit Catalysts Master Fund LimitedUnaudited Estimates as at 30 November 2012
Source: Brevan Howard * These estimates are unaudited and have been calculated by Brevan Howard using the same methodology as that used in the most recent audited financial statements of the Fund. These estimates are subject to change. Level 1: This represents the level of assets in the portfolio which are priced using unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: This represents the level of assets in the portfolio which are priced using either (i) quoted prices that are identical or similar in markets that are not active or (ii) model-derived valuations for which all significant inputs are observable, either directly or indirectly in active markets. Level 3: This represents the level of assets in the portfolio which are priced or valued using inputs that are both significant to the fair value measurement and are not observable directly or indirectly in an active market. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund Performance Review | The Fund's investment manager, DW Investment Management, LP, has provided the following performance review and market summary. The NAV per share of BHCC USD shares appreciated by 0.73% (net of fees) in November. The Fund generated the majority of its gains from MBS/ABS strategies and had additional gains from corporate tranche strategies. These gains were marginally offset by small losses in single-name corporate credit strategies. The mortgage and asset-backed security gains were again broad-based as most long positions continued to outperform corporate hedges. RMBS, CMBS, and Ambac-insured bonds were the three primary contributors for the month. The bulk of the corporate gains in November were generated in bespoke corporate tranches, as prices rebounded from the declines in October. There were quite small gains in long/short corporate index tranche trades and small losses in the Fund's fundamental single-name corporate trades. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market Summary | Credit spreads in November were flat to even a bit wider, but total returns for fixed rate corporate debt were still positive, due to fixed income yields falling further in the month. Corporations raced to issue debt, with more than $130 billion raised in the US across investment grade and high yield in November. Full year US corporate debt issuance is approaching the $1 trillion mark. US stocks edged up 0.55% in the month, anticipating more quantitative easing and a benign outcome for US fiscal austerity. As we write this letter, negotiations continue regarding US forward tax and spending policy. As we suggested last month, compromise is still quite challenging, given the dual 'mandates' American voters appeared to hand out last month (Obama ran promising higher tax rates and the Republican House of Representatives winners vowed the opposite). November was generally a "steady-as-she-goes month"; we will have more to say about US housing policy and the 2013 prospects for MBS in next month's year-end letter. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Enquiries |
Northern Trust International Fund Administration Services (Guernsey) Limited Harry Rouillard +44 (0) 1481 74 5315 |
Risk Factors
Acquiring shares in BHCC may expose an investor to a significant risk of losing all of the amount invested. Any person who is in any doubt about investing in BHCC (and therefore the Fund) should consult an authorised person specialising in advising on such investments. Any person subscribing for shares in BHCC must be able to bear the risks involved. These include, among others detailed in BHCC's Prospectus, the following:
? The Fund is speculative and involves substantial risk.
? The Fund will be leveraged and will engage in speculative investment practices that may increase the risk of investment loss. The Fund may invest in illiquid securities.
? Past results of the Fund's investment manager is not necessarily indicative of future performance of the Fund, and the Fund's performance may be volatile.
? An investor could lose all or a substantial amount of his or her investment.
? The investment manager has total investment and trading authority over the Fund, and the Fund is dependent upon the services of the investment manager. The use of a single advisor could mean lack of diversification and, consequently, higher risk.
? Investments in the Fund are subject to restrictions on withdrawal or redemption and should be considered illiquid.
? The investment manager's incentive compensation, fees and expenses may offset the Fund's trading and investment profits.
? The Fund is not required to provide periodic pricing or valuation information to investors with respect to individual investments.
? The Fund is not subject to the same regulatory requirements as mutual funds.
? A portion of the trades executed for the Fund may take place on foreign markets.
? The Fund is subject to conflicts of interest.
? The Fund is dependent on the services of certain key personnel, and, were certain or all of them to become unavailable, the Fund may prematurely terminate.
? The Fund's managers will receive performance-based compensation. Such compensation may give such managers an incentive to make riskier investments than they otherwise would.
? The Fund may make investments in securities of issuers in emerging markets. Investment in emerging markets involve particular risks, such as less strict market regulation, increased likelihood of severe inflation, unstable currencies, war, expropriation of property, limitations on foreign investments, increased market volatility, less favourable or unstable tax provisions, illiquid markets and social and political upheaval.
The above summary risk factors do not purport to be a complete description of the relevant risks of an investment in shares in BHCC and therefore reference should be had to BHCC's Prospectus and related offering documentation for a complete description of these and other relevant risks.
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