21st Aug 2019 10:34
(Alliance News) - BH Global Ltd said Wednesday it delivered its strongest first half since 2009 in a "more conducive" environment for macro and foreign exchange traders.
At June 30, the global fixed income and foreign exchange markets investment company's NAV per sterling share stood at 1,630 pence, 6.1% higher than the 1,537p recorded on December 31. The company's dollar NAV per share increased 6.8% over the first half to USD16.56 from USD15.51.
BH Global's sterling net assets increased 6.4% over the same period to GBP324.1 million from GBP304.5 million, with its dollar assets rising 3.1% to USD43.8 million from USD42.5 million. The investment company has considerably more sterling shares than dollar shares.
Total net assets were 6.2% higher at USD463.5 million.
The company's benchmark , the HFRI Macro Total Index, gained 4.8% in the first half.
BH Global invests all of its assets in the Brevan Howard Multi-Strategy Master Fund. BH Global is the principal investor in the fund, owning 75%.
The company's investment manager, Brevan Howard Capital Management, said: "The first half of the year proved to be relatively successful for Brevan Howard Multi-Strategy Master Fund's macro trading. The performance in the second quarter was particularly strong, generating one of the highest quarterly returns since inception."
Brevan Howard continued: "With regard to the returns of the underlying fund allocations, Brevan Howard Master Fund was the main positive contributor on the back of solid gains within interest rates trading. Both Brevan Howard Master Fund and Brevan Howard Multi-Strategy Master Fund continued to benefit from the improved environment in interest rates trading that has developed since early 2018. The Single Manager Portfolio, Brevan Howard Alpha Strategies Master Fund and BH-DG Systematic Trading Master Fund added to the gains, whereas Brevan Howard Global Volatility Master Fund was a modest detractor."
Brevan Howard Master Fund continued its recent "excellent performance" and appreciated by 13% over the six months to June 30, BH Global said.
Chair Michael Bunbury added: "The financial and political worlds continue to be very uncertain. In most developed countries interest rates, both nominal and real, continue at what historically have been almost unprecedentedly low levels.
"Easy monetary conditions since the global financial crisis have driven up the valuation of many asset classes, much to the benefit of the owners of those assets and to those that track indices rather than seek to generate alpha. However, looking forward it feels as if fundamentals are re-asserting themselves as the primary valuation driver."
BH Global has never declared a dividend, nor does it expect to.
Shares in BH Global's sterling class were 2.2% higher in London on Wednesday at 1,650.00 pence each. The company's dollar shares were untraded in London but last closed at USD16.80.