The fees are expected to come down to 2% and 20%.
Currently, there is a 0.5% management fee on the fund, with total ongoing charges of 0.74% and management and performance fees are paid on the underlying funds pro-rata, including 2.5% plus 25% on its investment on the BH Master Fund (which comprises just less than half the fund).
Numis Securities believes the high charges have been a factor in the fund’s persistent discount, which averaged 10% over the last year.
The BHMS is a $4.3bn open-ended portfolio run by Brevan Howard since 2008.
In-specie asset transfer
Both BH Global and BHMS are run by Brevan Howard Capital Management, sharing an investment objective of delivering consistent risk-adjusted NAV returns in all market conditions through exposure to multiple asset classes across the range of trading strategies managed by Brevan Howard.
While the Guernsey-incorporated Global portfolio is only invested in funds managed by Brevan Howard, BHMS can allocate capital directly to individual trading books managed by portfolio managers within the Brevan Howard group.
The board and the manager both believe that the broader remit and direct exposure to trading talent found across the group will benefit the return profile of the company.
The change would be made via an in-specie transfer, meaning assets would remain invested with no material expenses.
Detailed proposals are expected in May, and any change will take place after the completion of the euro share class closure process.
