BH CREDIT CATALYSTS 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 CREDIT CATALYSTS LIMITED INTERIM MANAGEMENT STATEMENT T +44 (0)20 7022 6250 www.brevanhoward.com Overview BH Credit Catalysts Limited ("BHCC" or the "Company") is a closed-ended and investment company, registered and incorporated in Guernsey on 19 October 2010 Objective 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. This Interim Management Statement covers the period from 1 July 2014 to the date of its publication. Company The total net assets of BHCC are summarised as follows: Size 30 September 30 June 2014 Change in Net 30 September 30 June 2014 2014 Assets 2014 Share Currency: In Currency Class Currency: USD USD 30 June 2014 to In Currency of Class (mm) (mm) 30 September 2014 of Class (mm) Currency: USD (mm) (mm) USD 51.8 54.9 -3.1 51.8 54.9 Shares GBP 176.4 185.7 -9.3 108.8 108.6 Shares Total 228.2 240.6 -12.4 - - Source: Northern Trust International Fund Administration Services (Guernsey) Limited ("Northern Trust") Figures are rounded to one decimal place. Share The number of shares in issue in each share class of BHCC is summarised as Capital follows: Share Class 13 November 2014* 30 September 2014 30 June 2014 USD Shares 3,023,926 3,763,806 3,942,710 GBP Shares 8,333,377 7,879,093 7,773,327 Source: Northern Trust * 13 November 2014 being the latest practicable date prior to the date of this Interim Management Statement. Performance The closing share price* of each share class of BHCC is summarised as Review follows: Share Class 13 November 2014** 30 September 2014 30 June 2014 USD Shares (US$) 14.145 14.225 13.985 GBP Shares (£) 14.035 14.12 14.10 Source: Bloomberg The NAV per share* of each share class of BHCC is summarised as follows: Share Class 7 November 2014*** 30 September 2014 30 June 2014 USD Shares (US$) 13.62 13.75 13.92 GBP Shares (£) 13.67 13.81 13.97 * 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. ** 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: BHCC's Net Asset Value per Share data is provided by BHCC's Administrator, Northern Trust, and is based on the Fund's Net Asset Value data provided by the Administrator of the Fund, International Fund Services (Ireland) Limited. BHCC's Net Asset Value data in this report is unaudited and net of all investment management fees (2% annual management fee and 20% performance fee) and all other fees and expenses payable by BHCC. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Further details of monthly performance information and the outlook of the Fund and BHCC can be obtained from BHCC's Shareholder Reports, copies of which are to be found on BHCC's website: www.bhcreditcatalysts.com Investment The change in the investment profile* (by strategy) of the Fund is summarised Profile as follows (percentage of total VaR**): Strategy 30 September 2014 30 June 2014 % of total VaR % of total VaR Corporate Performing 43% 42% Corporate Distressed 7% 7% Corporate Structured 12% 7% MBS/ABS 38% 44% Source: DWIM * Investment profile is subject to change.Figures rounded to nearest whole number. ** Value-at-Risk ("VaR") is calculated by BHCM using a 95% confidence interval, one day time horizon and two years of historical data. Strategy level numbers are expressed as a percentage of the sum of individual strategy VaRs, which may not equal the Fund's overall total VaR due to diversification across strategies. Material Manager Arrangements Events and Transactions As announced on 7 October and 11 November 2014, BHCM and DWIM have sent papers to investors in the private feeder funds into the Fund regarding the proposed transfer of management of the Fund from BHCM to DWIM. The transfer of the role of manager to DWIM is expected to take place on or before the beginning of 2015. Pursuant to the transfer, DWIM will assume risk management functions for the Fund as well as providing investor relations, legal and regulatory support. BHCM and its affiliates will provide certain other operational support services in respect of the Fund following the transfer, to ensure a smooth transition while DWIM further enhances its internal operational capabilities and processes. Following the proposed transfer of the management of the Fund, Brevan Howard will obtain an economic interest in DWIM, and DWIM will continue to manage capital on behalf of other Brevan Howard funds. The board of the Company is supportive of the proposed assumption by DWIM from BHCM of the wider management responsibilities of the Fund and also of the assumption by DWIM of management responsibilities in relation to the Company itself. The Company is in the process of finalising with DWIM the specific terms on which DWIM will act as manager of the Company and the Company will continue its investment exposure to the Fund. It is anticipated that a meeting of the Company's shareholders will be held in December to approve changes to the Company's investment policy and name to facilitate the transfer of management and that a circular setting out the proposed changes will be sent to shareholders towards the end of November. 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 date 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 Credit Catalysts Limited ("BHCC") is a feeder fund investing in Brevan Howard Credit Catalysts Master Fund Limited (the "Fund"). Brevan Howard Capital Management LP ("BHCM") has supplied certain information herein regarding BHCC's and the Fund's performance and outlook. The material relating to BHCC 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 BHCC or the Fund and is not intended to constitute "marketing" of either BHCC 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, BHCC, 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 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. 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
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