PR Newswire
LONDON, United Kingdom, March 31
BH Macro Limited
LEI: 549300ZOFF0Z2CM87C29
(Classified Regulated Information, under DTR 6 Annex 1 section 1.1)
The Company has today, in accordance with DTR 6.3.5, released its Annual Report
and Audited Financial Statements for the year ended 31 December 2025. The Report
will shortly be available from the Company’s website: www.bhmacro.com.
BH Macro Limited («theCompany», GBP share class ticker = «BHMG»), the FTSE 250
-listed investment company that aims to generate long-term appreciation through
active trading on a global macro basis by investing in the Brevan Howard Master
Fund Limited (the «Master Fund»), is pleased to announce its final results for
the year ended 31 December 2025.
Financial highlights
· Total NAV return per GBP ordinary share of 1.38%, and USD shares 0.83%
(2024: 5.86% and 4.92%, respectively)
· Share price total returns of -1.72% for the Sterling Class and 1.68% for the
USDollar Class
· Despite £116m having been spent during 2025 under the buyback program,
including US Dollar buybacks of US$1.3 million, this was not sufficient to
prevent the average discount for the year being 8.1% for the Sterling Class
shares and 8.3% for the USDollar Class shares.
Results commentary highlights
· The Board regards this performance as less than satisfactory as does Brevan
Howard Capital Management LP (the «Manager») – whilst it is within expected
bounds of return. The Board are encouraged by the changes to process which the
Manager has implemented during the course of the year.
· In addressing the persistent level of discount, the Board has negotiated an
increase in the 2026 allowance for Master Fund redemptions to enable buybacks to
up to 14.99% of each class of the Company’s issued share capital(as at the end
of 2025), without fees being incurred, upfrom 5% in 2025.
· On 26 January 2026, it was announced that a private Brevan Howard fund was
being launched which will have the power to invest in the shares of both the
Master Fund and BHMacro, along with other products offered by Brevan Howard.
Therefore, there will be an additional potential purchaser of the Company’s
shares.
Outlook
The macro-economic and geopolitical background remains extremely challenging.
While this is undoubtedly a very difficult environment for individuals to
experience and live through, it will provide opportunities for the Manager to
deliver returns in the future. The Board retains full confidence in the
Company’s strategy during these challenging times
Commenting on the results, Richard Horlick, Chair, said: «BH Macro has
historically provided significant diversification from, and lack of correlation
to, bond and equity markets. In today’s unpredictable global market environment,
macro strategies such as BH Macro have never been more relevant. Whilst the
Board regards the company’s performance for 2025 as less than satisfactory (as
does the Manager), NAV returns were within expected bounds of return and proved
the convexity of trades for which Brevan Howard are well known (i.e. when «they
get it wrong» the downside risk of the NAV is limited, and on the other hand
being able to capture plenty of upside when they are correct). As a Board, we
are confident that the actions we and the Manager have taken are the best way to
address the issues facing our Shareholders, and as such, the Board retains its
confidence in the Manager.
Annual Report and Audited Financial Statements 2025
Chair’s Statement
I am pleased to present the Annual Report for BH Macro Limited (the «Company»)
for the year ended 31 December 2025. The Company invests in Brevan Howard Master
Fund Limited (the «Master Fund») whose investment objective is to generate
consistent long-term appreciation through active leveraged trading and
investment on a global basis. This has led to diversification from, and low
correlation to, bond and equity
markets.
2025 was a challenging year in terms of return with the net asset value («NAV»)
per share of the Sterling Class shares rising by 1.4% and the NAV per share of
the US Dollar Class shares rising by 0.8%. The share price returns experienced
by the Company’s shareholders (the «Shareholders») were slightly different,
namely -1.7% for the Sterling Class shares and 1.7% for the US Dollar Class
shares. In summary, the board of directors of the Company (the «Board») regards
this performance as less than satisfactory whilst it is within expected bounds
of return. The Board acknowledges that the persistent level of share price to
NAV discount at which the Sterling Class shares and US Dollar Class shares have
traded, which, for example, remained stubbornly between 6.7% to 10.6% with
respect to the Sterling Class shares, is undesirable.
During 2024, the Board spent £116 million buying back Sterling Class shares in
the Company in the face of persistent selling and a further £115 million was
spent during 2025 as part of the Sterling Class share buyback programme.1
However, this was not sufficient to prevent the average discount for the year
being 8.1% for the Sterling Class shares and 8.3% for the US Dollar Class
shares. Consequently, the Company faced class closure votes in respect of both
share classes during February 2026. The causes of this discount are well known.
Firstly, there has been a well-publicised overhang of stock which has
consistently been sold in the market. Secondly, the performance of the NAV per
share of each class of shares, whilst within range and certainly displaying the
convexity of returns for which Brevan Howard Capital Management LP (the
«Manager») is well known, has been significantly less than some other asset
classes. Thirdly, the environment for wealth managers in the UK, the predominant
Shareholders of the Company, has been extremely difficult in the current
economic and political climate. Last year also unfortunately saw a lack of
returns from the two historically principal drivers of return, interest rate
trading and FX trading, and the Board is encouraged by the changes to process
which the Manager has implemented during the course of the year.
I am pleased to report that, at the subsequent Sterling Class extraordinary
general meeting («EGM») held on 19 February 2026, the Sterling Class
Shareholders demonstrated continued support for the Company and followed the
recommendation of the Board to vote against class closure for the Sterling Class
shares, with 96.23% of votes cast voting against the resolution. The EGM for the
US Dollar Class shares was also due to be held on 19 February 2026 but was not
quorate and was therefore adjourned. The reconvened EGM was held on 26 February
2026 and the USD Class Shareholders voted against class closure, with 99.91% of
votes cast voting against the resolution.
The Board has also negotiated with the Manager an increased buyback allowance of
14.99% of the Company’s share capital, which can be bought back in 2026 without
fees being incurred, up from 5% in 2025. In addition, on 26 January, it was
announced that a private fund is being launched whose intention is to invest and
trade in strategies and funds managed by the Manager, including the Company.
This will mean that there is potentially an additional purchaser of the
Company’s shares. The Board is confident that these actions may potentially help
to address the issues facing Shareholders. During the course of the year, the
Manager’s business has remained stable with assets under management of
approximately US$34 billion as at 31 December 2025 and the team remained strong
at the portfolio manager level.
The Board has acknowledged and supported steps taken by the Manager to invest in
the ongoing enhancement of its technology and infrastructure, strengthening
analytical capabilities, risk management frameworks and operational resilience.
Against this background, the Board has continued its regular dialogue with the
Manager, reviewing the Master Fund’s trading strategies and risk exposure and
satisfying itself that the Manager’s analytical trading and risk management
capabilities continue to be maintained at a high standard.
The Company and the Manager have continued to pursue an active programme for
public communication and investor relations. Up-to-date performance information
is provided through NAV data published monthly on a definitive basis and weekly
on an estimated basis, as well as through monthly reports and shareholder
reports. All these reports and further information about the Company are
available on its website (www.bhmacro.com).
The Board is wholly independent of the Brevan Howard group, is very closely
focused on safeguarding the interests of Shareholders and believes that the
Company observes high standards of corporate governance. The Board continues to
operate well with a high level of engagement and a close working relationship
between the diverse members of the Board. We are pleased to say that we are in
compliance with all current regulations and recommendations of board
composition.
CONCLUSION
The macro-economic and geopolitical backdrop remains challenging. Global
uncertainty continues to weigh on markets, especially owing to an evolving and
increasingly complex conflict in the Middle East. President Trump continues to
act unconventionally both domestically and on the international stage. Looking
ahead, it remains to be seen what impact this will have on the November 2026 mid
-term elections.
With respect to the UK, I expressed scepticism last year with regard to the
financial stability promised by the incumbent administration. Sadly, recent
developments appear to align with my previous reservations.
In these circumstances, the Board retains full confidence that the Manager’s
strategy provides the opportunity to deliver returns in a dynamic environment. I
would like to thank Shareholders for their continued support and trust in the
Company’s strategy and management.
Richard Horlick
Chair
30 March 2026
1Having not carried out any buybacks in the US Dollar share class during 2024,
in 2025, the Board spent US$ 1.3 million on funding share buybacks in this
class.
Board Members
The Directors of the Company during the year and as at the date of signing, all
of whom are non-executive, are listed below:
Richard Horlick (Chair)
Richard Horlick is a UK resident. He is currently the non-executive chairman of
CCLA Investment Management which manages assets for over 38,000 charities and
church and local authority funds. He has served on a number of closed-ended fund
boards. He has had a long and distinguished career in investment management
graduating from Cambridge University in 1980 with an MA in Modern History. After
3 years in the corporate finance department of Samuel Montagu, he joined Newton
Investment Management in January 1984, where he became a Director and portfolio
manager. In 1994, he joined Fidelity International as President of their
institutional business outside the US and in 2001 became President and CEO of
Fidelity Management Trust Company in Boston which was the Trust Bank for the US
Fidelity Mutual fund range and responsible for their defined benefit pension
business. In 2003, he joined Schroders Plc as a main Board Director and head of
investment worldwide. Mr. Horlick was appointed to the Board in May 2019 and was
appointed Chair in February 2021.
Caroline Chan
Caroline Chan is a Guernsey resident and has over 30 years’ experience as a
corporate lawyer, having retired from private practice in 2020. After studying
law at Oxford University, Caroline qualified as an English solicitor with Allen
& Overy, working in their corporate teams in London and Hong Kong. On returning
to Guernsey in 1998, Caroline qualified as a Guernsey advocate and practised
locally, including as a partner with law firms Ogier and Mourant Ozannes. Since
retiring from private practice, Caroline has taken on non-executive directorship
roles and is Chair of the Board of Governors of The Ladies’ College, Guernsey.
She was a member of the Guernsey Competition and Regulatory Authority until
March 2023. Ms. Chan was appointed to the Board in December 2022.
Julia Chapman
Julia Chapman is a Jersey resident and a solicitor qualified in England & Wales
and in Jersey with over 30 years’ experience in the investment fund and capital
markets sector. After working at Simmons & Simmons in London, she moved to
Jersey and became a partner of Mourant du Feu & Jeune (now Mourant) in 1999. She
was then appointed general counsel to Mourant International Finance
Administration (the firm’s fund administration division). Following its
acquisition by State Street in April 2010, Julia was appointed European Senior
Counsel for State Street’s alternative investment business. In July 2012, Julia
left State Street to focus on the independent provision of directorship and
governance services to a small number of investment fund vehicles. Mrs. Chapman
was appointed to the Board in October 2021.
Bronwyn Curtis
Bronwyn Curtis is a UK resident and Senior Executive with 30 years leadership in
finance, commodities, consulting and the media. Her executive roles included
Head of Global Research at HSBC Plc, Managing Editor and Head of European
Broadcast at Bloomberg LP, Chief Economist of Nomura International, and Global
Head of Foreign Exchange and Fixed Income Strategy at Deutsche Bank. She has
also worked as a consultant for the World Bank and UNCTAD. Her other current
appointments include trustee of the Centre for Economic and Policy Research, the
Australia-UK Chamber of Commerce and The Times shadow MPC. She is a graduate of
the London School of Economics and La Trobe University in Australia where she
received a Doctor of Letters in 2017. Bronwyn was awarded an OBE in 2008 for her
services to business economics. Mrs. Curtis was appointed to the Board in
January 2020 and was appointed Senior Independent Director on 13 September 2023.
John Le Poidevin
John Le Poidevin is a Guernsey resident and has over 30 years’ business
experience. Mr. Le Poidevin is a graduate of Exeter University and Harvard
Business School, a Fellow of the Institute of Chartered Accountants in England
and Wales and a former partner of BDO LLP in London where, as Head of Consumer
Markets, he developed an extensive breadth of experience and knowledge of listed
businesses in the UK and overseas. He is an experienced non-executive who sits
on several Plc boards and chairs a number of Audit Committees. He therefore
brings a wealth of relevant experience in terms of corporate governance, audit,
risk management and financial reporting. Mr. Le Poidevin was appointed to the
Board in June 2016 and will step down from the Board at the 2026 AGM.
John Whittle
John Whittle is a Guernsey resident. He is a Fellow of the Institute of
Chartered Accountants in England and Wales and holds the Institute of Directors
Diploma in Company Direction. He has extensive experience of Non-Executive
Director and Audit Committee Chair roles on listed companies. He was previously
Finance Director of Close Fund Services, a large independent fund administrator,
where he successfully initiated a restructuring of client financial reporting
services and was a key member of the business transition team. Prior to moving
to Guernsey, he was at Price Waterhouse in London before embarking on a career
in business services, predominantly telecoms. He co-led the business turnaround
of Talkland International (which became Vodafone Retail) and was directly
responsible for the strategic shift into retail distribution and its subsequent
implementation; he subsequently worked on the private equity acquisition of Ora
Telecom. Mr. Whittle was appointed to the Board in July 2025.
Disclosure of Directorships in Public Companies Listed on Recognised Stock
Exchanges
The following summarises the Directors’ current directorships in other public
companies:
Exchange
Richard Horlick
Riverstone Energy Limited London
VH Global Energy Infrastructure Plc London
Caroline Chan
NextEnergy Solar Fund Limited London
NB Private Equity Partners Limited London
Bronwyn Curtis
TwentyFour Income Fund Limited London
John Le Poidevin
Super Group (SGHC) Limited New York
TwentyFour Income Fund Limited London
John Whittle
The Renewables Infrastructure Group Limited London
Sancus Lending Group Limited AIM
Strategic Report
For the year ended 31 December 2025
The Directors submit to the Shareholders their Strategic Report of the Company
for the year ended 31 December 2025.
The Strategic Report provides a review of the business for the financial year
and describes how risks are managed. In addition, the report outlines key
developments and the financial performance of the Company during the financial
year and the position at the end of the year, and discusses the main factors
that could affect the future performance and financial position of the Company.
BUSINESS MODEL AND STRATEGY
Investment Objective and Company Structure
The Company is organised as a feeder fund that invests solely in the ordinary
Sterling and US Dollar-denominated Class B shares issued by the Master Fund – a
Cayman Islands open-ended investment Company, which has as its investment
objective the generation of consistent long-term appreciation through active
leveraged trading and investment on a global basis. Further details on the
Company’s investment objective and policy can be found in the Directors’ Report.
Sources of Cash and Liquidity Requirements
As the Master Fund is not expected to pay dividends, the Company expects that
the primary source of its future liquidity will depend on the periodic
redemption of shares from the Master Fund and borrowings in accordance with its
leverage policies.
BUSINESS ENVIRONMENT
Corporate Governance, Risk Framework and Internal Controls
The Board is responsible for establishing and maintaining an effective corporate
governance, risk management and internal control framework and for reviewing its
effectiveness. The Company has no staff and the Board delegates contractually to
third-party service providers for all of the Company’s operational requirements.
The Company’s risk framework comprises five pillars:
· Oversight of service providers throughout the year, including regular
reporting on their activities, review of internal controls reports from the
Manager and Northern Trust International Fund Administration Services (Guernsey)
Limited (the «Administrator»), an annual assessment of all service providers
through the Management Engagement Committee and an on-site visit by the Board to
one of the Manager’s key offices. Oversight of service providers’ policy
maintenance in relation to market abuse, anti-bribery, anti-fraud, anti-tax
evasion, anti-money laundering, data protection, information security and
conflicts of interest;
· Regular reporting on and an annual review of compliance with the UK Listing
Rules;
· Annual review of compliance with the Association of Investment Companies
Corporate Governance Code (the «AIC Code»);
· The establishment and annual review of a number of key policies, including
those in relation to anti-bribery, information security, share dealing, insider
information and disclosure; and
· Regular review of a comprehensive risk matrix and the effective operation of
internal controls in relation to those material risks.
Principal Risks and Uncertainties
The nature and extent of the principal and emerging risks which have been
determined by the Board in order to meet the Company’s long term strategic
objectives and the steps which are taken by the Board to manage or mitigate them
are as follows:
· Investment Risks: The Company is exposed to the risk that its portfolio
fails to perform in line with the Company’s objectives if it is inappropriately
invested or markets move adversely or the environment becomes structurally
unsuitable for the Company’s investment policy, leading to investor
dissatisfaction. The Board receives reports presented by the Manager, which has
total discretion over portfolio allocation, at each quarterly Board meeting,
paying particular attention to this allocation and to the performance and
volatility of underlying investments. The Board and the Manager have regular
contact with investors and the Manager publishes monthly shareholder reports and
fact sheets which are available on the Company’s website;
· Operational and Cyber Security Risks: The Board is responsible for ensuring
it is effective in its oversight of the Company’s operations and cyber security.
The Company is exposed to the risks arising from any failure of systems and
controls in the operations of its key service providers, including each of the
Manager and the Administrator, or from their unavailability for whatever reason,
including those arising from cyber security issues. The Board receives regular
reports from each of those parties on cyber security and annual independent
third-party reporting on their respective internal controls;
· Financial Risks: The financial risks faced by the Company include market,
credit and liquidity risk. These risks and the controls in place to mitigate
them are reviewed at each quarterly Board meeting. The Company’s principal
documents also require that if any class of shares trades at an average discount
at or in excess of 8% of the monthly NAV in any year from 1 January to 31
December, the Company will hold a class closure vote of the relevant class. The
Company has available and has previously implemented, a number of methods in
order to mitigate any discount to NAV, including making market purchases of its
shares as part of a discount management programme;
· Regulatory, legal and accounting risks: Comprising two of the pillars of the
Company’s risk framework, the Company is exposed to risk if it fails to comply
with the regulations of the UK Listing Authority or the provisions of the AIC
Code and/or any other applicable regulatory and legislative matters, or if it
fails to maintain accurate or timely accounting records and published financial
information. The Administrator provides the Board with regular internal control
and compliance reports and reports on changes in regulatory requirements;
· Geopolitical Risks: The Company is indirectly exposed to the risk of
geopolitical events, covering disruption arising from economic uncertainty and
volatility including any change or disruption to global trade and economic
policy resulting from any major shifts in long-standing policy positions of
major economies. In respect of political and military conflict, including the
current conflicts in Ukraine and the Middle East, the Master Fund has had no
direct material exposure to Russia, Ukraine or Iran, and the Board and the
Manager monitor global events in order to mitigate any collateral impact on the
Company and its performance. The Board has also made enquiries of key service
providers in respect of any impact from such conflicts and the related
instability in world markets and has been assured that where, as in the case of
Brevan Howard in Abu Dhabi, service providers have operations in the affected
regions, they are not impacted in terms of their ability to continue to supply
their services to the Company; and
· Climate Change and Environmental Social and Governance («ESG») Risks: The
Company recognises the importance of this emerging risk, including regulatory
requirements relating thereto and the expectations of stakeholders regarding
relevant disclosures around this set of risks, which have continued to develop
over recent years. The Company has no employees and does not own any physical
assets and is not directly exposed to climate change risk. Therefore, climate
change risk does not have an impact on the financial statements at 31 December
2025, but the Company recognises that climate change risk may have an effect on
the investments held in the Master Fund. The Manager monitors developments in
this area and industry best practice on behalf of the Board, where appropriate,
and regularly assesses the trading activity of the underlying Master Fund and
sub-funds to ascertain whether ESG factors are appropriate or applicable to such
funds. The Board has also made enquiries of key service providers in respect of
their assessment of how climate change and ESG risk impacts their own operations
and has been assured that this has no impact on their ability to continue to
supply their services to the Company.
The Board’s assessment of the above risks has not changed during the year.
Board Policy on Diversity
The Company has no employees and its policy on diversity is therefore applicable
only to the composition of the Board of Directors and board committees. The
objective of the Company’s Diversity Policy is to ensure the best possible mix
of skills and experience within the overall composition of the Board and this is
reviewed annually by the Remuneration and Nomination Committee and also as part
of the process for succession planning and the appointment of new directors.
When appointing new Directors and reviewing the Board
composition, the Remuneration and Nomination Committee considers, amongst other
factors, diversity, balance of skills, knowledge, gender and experience. At 31
December 2025, the Board believes that it was fully compliant in terms of UKLR
6.6.6(9) in relation to board diversity. There have been no changes to the
Board’s composition since that date. We have set out additional details in the
table below, which were collected directly from each Board member:
Board Diversity
Name Gender Identity Ethnicity
Richard Horlick Male White British
Caroline Chan Female White Asian British
Julia Chapman Female White British
Bronwyn Curtis Female White European
John Le Poidevin Male White British
John Whittle (appointed 1 July 2025) Male White British
Environmental, Social and Governance Factors
The Company does not have employees, it does not own physical assets and its
Board is formed exclusively of non-executive Directors. As such, the Company
does not undertake any material activity which would directly affect the
environment.
On a regular basis, the Manager assesses the trading activity of the investment
funds it manages, including the Master Fund, to ascertain whether ESG factors
are appropriate or applicable to such funds. Most ESG principles have been
envisaged in the context of equity or corporate fixed income investment and
therefore are not readily applicable to most types of instruments traded by the
Master Fund.
The Manager continues to monitor developments in this area and seeks to
implement industry best practice where applicable. The Manager is a signatory to
the UN Principles for Responsible Investment and, on a regular basis, assesses
the trading activities of the Master Fund as to whether ESG, the UN principles
and sustainability risks under the EU Sustainable Finance Disclosure Regulation
are appropriate, relevant, or applicable to the Master Fund, considering the
structure of relevant Brevan Howard managed funds and the applicable trading
universe.
The Administrator is a wholly-owned indirect subsidiary of Northern Trust
Corporation, which has adopted the UN Global Compact principles, specifically:
implementing a precautionary approach to addressing environmental issues through
effective programmes, undertaking initiatives that demonstrate the
acknowledgement of environmental responsibility, promoting and using
environmentally sustainable technologies, and UN Sustainable Development Goals,
specifically: using only energy efficient appliances and light bulbs, avoiding
unnecessary use and waste of water, implementing responsible consumption and
production, and taking action to reduce climate change.
POSITION AND PERFORMANCE
Packaged Retail and Insurance Based Investment Products («PRIIPs»)
From 1 January 2021, the Company became subject to the UK version of Regulation
(EU) No 1286/2014 on key information documents for PRIIPs, which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018, as amended and
supplemented from time to time, including by the Packaged Retail and Insurance
-based Investment Products (Amendment) (EU Exit) Regulations 2019 (the «UK
PRIIPs Laws»). In accordance with the requirements of the UK PRIIPs Laws, the
Manager published the latest standardised three-page Key Information Document (a
«KID») for the Company’s Sterling shares and another for its US Dollar shares on
23 July 2025 (based on data as at 31 December 2024). Each KID is available on
the Company’s website https://www.bhmacro.com/regulatory-disclosures/.
The Manager is the PRIIPs manufacturer for each KID and the Company is not
responsible for the information contained in each KID. The process for
calculating the risks, cost and potential returns is prescribed by regulation.
The figures in the KID, relating to the relevant share class, may not reflect
the expected returns for that share class of the Company and anticipated returns
cannot be guaranteed.
Performance
Key Performance Indicators («KPIs»)
At each quarterly Board meeting, the Directors consider a number of performance
measures to assess the Company’s success in achieving its objectives. Below are
the main KPIs which have been identified by the Board for determining the
progress of the Company:
1. NAV
The Company’s NAV can be considered to have appreciated from £1.00* per Sterling
share and US$1.00* per US Dollar share at launch to £4.41 per Sterling share and
US$4.52 per US Dollar share at the 2025 financial year end. This increase in NAV
is largely attributable to the Company’s long-term growth strategy and returns.
The Directors and the Manager are confident that the current strategy will
continue to return positive levels of growth over the long-term.
* The launch price is adjusted by a factor of 10 to reflect the 10 for 1 share
sub-division, which occurred on 7 February 2023.
2. Share Prices, Discount/Premium
The Company’s shares traded at an average discount of 8.10% and 8.36% to NAV for
its Sterling shares and US Dollar shares respectively for the year ended 31
December 2025.
3. Ongoing Charges
The Company’s ongoing charges ratio, which includes both performance fees and
Master Fund charges, for the financial year ended 2025 as compared to the
ongoing charges ratio for the financial year ended 2024 has decreased from 2.95%
to 2.47% on the Sterling shares and decreased from 3.06% to 2.40% on the US
Dollar shares, primarily due to changes in the level of the Manager’s
performance fee as a result of relative performance.
The Company reports an aggregated view of the charges for both the Sterling
shares and US Dollar shares. Further details are in the Directors’ Report.
Gain per Share
Total gain per share is based on the net gain on ordinary activities after tax
of £7,022,125 for the Sterling share class and a net gain of US$613,157 for the
US Dollar share class (2024: gain of £68,166,209 and US$5,680,548 respectively).
These calculations are based on the weighted average number of shares in issue
for the year ended 31 December 2025, resulting in 330,852,980 Sterling shares
and 26,107,953 US Dollar shares (2024: Sterling shares: 380,616,423 and US
Dollar shares: 28,572,373).
Year ended Year ended
31.12.25 31.12.24
Per share ‘000 Per share ‘000
Net 2.12p £7,022 17.91p £68,166
total
gain for
Sterling
shares
Net 2.35c US$613 19.88c US$5,681
total
gain for
US
Dollar
shares
NAV
The NAV per Sterling share, as at 31 December 2025 was £4.41 based on net assets
of £1,390,318,037 divided by the number of Sterling shares in issue of
315,526,112 (2024: £4.35).
The NAV per US Dollar share, as at 31 December 2025 was US$4.52 based on net
assets of US$107,615,875 divided by number of US Dollar shares in issue of
23,824,541 (2024: US$4.48).
Dividends
No dividends were paid during the year (2024: US$ Nil).
Viability Statement
The investment objective of the Company is to seek to generate consistent long
-term capital appreciation through its investment policy of investing all of its
assets (net of funds required for its short-term working capital) in the Master
Fund.
The Directors have assessed the viability of the Company over the three-year
period to 31 December 2028. The Viability Statement covers a period of three
years, which the Board has determined is appropriate given the inherent
uncertainty of the investment world and the specific risks to which the Company
is exposed.
The continuation of the Company in its present form is largely dependent on the
management agreement between the Company and the Manager (the «Management
Agreement») remaining in place. Since January 2023, the Management Agreement has
been generally terminable on a twelve month notice period save for certain
exceptions. To ensure that the Company maintains a constructive and informed
relationship with the Manager, the Directors meet regularly with the Manager to
review the Master Fund’s performance, and through the Management Engagement
Committee, the Directors review the Company’s relationship with the Manager and
the Manager’s performance and effectiveness. The Directors currently know of no
reason why either the Company or the Manager might serve notice of termination
of the Management Agreement over the period covered by this Viability Statement.
The Company’s assets exceed its liabilities by a considerable margin.
Furthermore, the majority of the Company’s most significant expenses, being the
fees owing to the Manager and to the Administrator, fluctuate by reference to
the Company’s investment performance and NAV. The Company is able to meet its
expenses by redeeming shares in the Master Fund as necessary, as and when
required to enable the Company to meet its ordinary course operating expenses.
The Company’s investment performance depends upon the performance of the Master
Fund and the Manager as manager of the Master Fund. The Directors, in assessing
the viability of the Company, pay particular attention to the risks facing the
Master Fund. The Manager operates a risk management framework, which is intended
to identify, measure, monitor, report and, where appropriate, mitigate key risks
identified by it or its affiliates in respect of the Master Fund.
The Company’s shares were largely traded at a premium up until the middle of
2023, since when, in common with the broader investment trust sector, the shares
have traded at a discount. In the event of any downward pressure on the
Company’s share prices, the Company is able to consider resuming active discount
management actions, including share buybacks, so that as far as possible the
share prices would more closely reflect the Company’s underlying performance.
Share buybacks commenced in December 2023 and have continued throughout 2024 and
2025 in the face of persistent selling. The Company is able to meet the costs of
share buybacks by redeeming shares in the Master Fund. Pursuant to the
Management Agreement, there are restrictions on the amount of Master Fund shares
which the Company may redeem in a given period; and the Company may incur fees
to the Manager in certain circumstances. The Company is also subject to the
Shareholders’ authority for share purchases in the market approved at the AGM
held in May 2025. Refer to notes 2 and 8 in the Annual Audited Financial
Statements for details of the Company’s discount management mechanisms.
The Directors have carried out a robust assessment of the risks, which include
the February 2026 class closure votes and their subsequent defeat, and on the
assumption that the risks are managed or mitigated in the ways noted above, the
Directors have a reasonable expectation that the Company will be able to
continue in operation and meet its liabilities as they fall due over the three
-year period of their assessment.
Section 172, Companies Act 2006
Although the Company is domiciled and resident in Guernsey, the Board has
considered the guidance set out in the Association of Investment Companies (the
«AIC») Code in relation to Section 172 of the Companies Act 2006 in the UK.
Section 172 of the Companies Act requires that the Directors of the Company act
in the way they consider, in good faith, is most likely to promote the success
of the Company for the benefit of all stakeholders, including suppliers,
customers and Shareholders. Whilst the Company has no customers or employees,
the Board considers the Company’s key stakeholders to be its shareholders and
service providers and has had regular engagement with both during the financial
year.
Key Service Providers
The Company does not have any employees and, as such, the Board delegates
responsibility for its day-to-day operations to a number of key service
providers, which are considered to be the Company’s suppliers. The activities of
each service provider are closely monitored by the Board and they are required
to report to the Board at set intervals.
In addition, a formal review of the performance of each service provider is
carried out once a year by the Management Engagement Committee.
The Manager
The Manager is a leading and well-established hedge fund manager. In exchange
for its services, a fee is payable as detailed in note 4 to the Annual Audited
Financial Statements.
The Board considers that, under the Company’s current investment objective, the
interests of Shareholders, as a whole, are best served by the ongoing
appointment of the Manager.
Administrator and Corporate Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited is
the Company’s Administrator and corporate secretary (the «Corporate Secretary»).
Further details on fee structure are included in note 4 to the Annual Audited
Financial Statements.
Signed on behalf of the Board by:
Richard Horlick
Chair
John Le Poidevin
Director
30 March 2026
Directors’ Report
31 December 2025
The Directors submit their Annual Report together with the Company’s Audited
Statement of Assets and Liabilities, Audited Statement of Operations, Audited
Statement of Changes in Net Assets, Audited Statement of Cash Flows and the
related notes for the year ended 31 December 2025. The Directors’ Report
together with the Annual Audited Financial Statements and their related notes
(the «Annual Audited Financial Statements») give a true and fair view of the
financial position of the Company. They have been prepared in accordance with
United States Generally Accepted Accounting Principles («US GAAP») and are in
agreement with the accounting records.
The Company
BH Macro Limited is a limited liability closed-ended investment Company which
was incorporated in Guernsey on 17 January 2007 and then admitted to the
Official List of the London Stock Exchange («LSE») later that year. The Company
is currently included in the London Stock Exchange’s FTSE 250 Index and has been
throughout the current and prior financial years.
The Company’s ordinary shares are issued in Sterling and US Dollars.
Investment Objective And Policy
The Company is organised as a feeder fund that invests all of its assets (net of
short-term working capital requirements) directly in the Master Fund, a hedge
fund in the form of a Cayman Islands open-ended investment company, which has as
its investment objective the generation of consistent long-term appreciation
through active leveraged trading and investment on a global basis. The Master
Fund is managed by Brevan Howard Capital Management LP, the Company’s Manager.
The Master Fund has flexibility to invest in a wide range of instruments
including, but not limited to, debt securities and obligations (which may be
below investment grade), bank loans, listed and unlisted equities, other
collective investment schemes, currencies, commodities, digital assets, futures,
options, warrants, swaps and other derivative instruments. The underlying
philosophy is to construct strategies, often contingent in nature, with superior
risk/return profiles, whose outcome will often be crystallised by an expected
event occurring within a pre-determined period of time.
The Master Fund employs a combination of investment strategies that focus
primarily on economic change and monetary policy and market inefficiencies.
The Company may employ leverage for the purposes of financing share purchases or
buybacks, satisfying working capital requirements or financing further
investment into the Master Fund, subject to an aggregate borrowing limit of 20%
of the Company’s NAV, calculated as at the time of borrowing. Borrowing by the
Company is in addition to leverage at the Master Fund level, which has no limit
on its own leverage.
Results And Dividends
The results for the year are set out in the Audited Statement of Operations. The
Directors do not recommend the payment of a dividend.
Share Capital
At the Annual General Meeting held on 16 May 2025, Shareholders approved an
Ordinary Resolution to allow the Directors to have the power to issue further
shares totalling 112,033,560 Sterling shares and 9,043,124 US Dollar shares,
respectively. Shareholders at the Annual General Meeting also approved a Special
Resolution that authorised the maximum number of shares that may be purchased on
-market by the Company until the next Annual General Meeting, being 50,386,530
Sterling shares and 4,067,099 US Dollar shares.
During the financial year 2025, the Company has bought back 29,268,612 Sterling
shares on the London Stock Exchange with prices ranging from £3.72 to £4.12 per
share. The Company also bought back 311,894 US Dollar shares on the London Stock
Exchange with prices ranging from US$4.08 to US$4.24 per share. The repurchased
shares are held by the Company in Treasury.
The number of shares in issue at the year end is disclosed in note 5 of the
Annual Audited Financial Statements.
Going Concern
The Directors, having considered the Principal and Emerging Risks and
Uncertainties to which the Company is exposed, which are listed in the Business
Environment section, and on the assumption that these are managed or mitigated
as noted, are not aware of any material uncertainties which may cast significant
doubt upon the Company’s ability to continue as a going concern for at least 12
months from the date of approval of these Annual Audited Financial Statements
and, accordingly, consider that it is appropriate that the Company continues to
adopt the going concern basis of accounting for these Annual Audited Financial
Statements.
Whilst the Board continues to monitor the ongoing impact of various geopolitical
events, the Board has concluded that the biggest threat to the Company remains
the failure of a key service provider to maintain business continuity and
resiliency. The Board has assessed the measures in place by key service
providers to maintain business continuity and, so far, has not identified any
significant issues that affect the Company. The financial position of the
Company has not been negatively impacted by geopolitical events either and the
Board is confident that these events have not impacted the going concern
assessment of the Company.
In December 2023, the Board commenced a share buyback programme to manage any
excess mismatch between buyers and sellers of the Company’s shares in the public
markets and in order to narrow the discount at which the Company’s shares trade.
All share buybacks have been and will continue to be funded by specific cash
allocated to them through the redemption of shares in the Master Fund, subject
to the notice period discussed in note 2 to the Annual Audited Financial
Statements, and there is therefore no impact on the cash available to cover the
Company’s central operating costs.
The average discount to NAV for the Sterling shares and US Dollar shares for the
year ended 31 December 2025 was above 8% and consequently class closure votes
were called for both share classes. Following the Sterling class closure meeting
on 19 February 2026 it was announced that the Sterling Shareholders had defeated
the class closure resolution, with 96.23% of votes received against closure. It
was also announced that the US Dollar class closure meeting of the same date was
inquorate, and the meeting was postponed to 26 February 2026. The US Dollar
class closure meeting on 26 February 2026 was quorate, with 99.91% of votes
received against closure. Both votes indicate overwhelming shareholder support
for the continuation of the Company and its strategy.
The Directors have therefore concluded that there are no significant cash flow
or other risks in relation to preparing the Annual Audited Financial Statements
on a going concern basis.
The Board
The Board of Directors has overall responsibility for safeguarding the Company’s
assets, for the determination of the investment policy of the Company, for
reviewing the performance of the service providers and for the Company’s
activities. The Directors, all of whom are non-executive, are listed in the
Board Members section.
The Board meets at least four times a year and between these formal meetings,
there is regular contact with the Manager, JPMorgan Cazenove (the «Corporate
Broker») and the Administrator. The Directors are kept fully informed of
investment and financial controls, and other matters that are relevant to the
business of the Company are brought to the attention of the Directors. The
Directors also have access to the Administrator and, where necessary in the
furtherance of their duties, to independent professional advice at the expense
of the Company.
For each Director, the tables below set out the number of Board meetings and
Audit Committee meetings they were entitled to attend during the year ended 31
December 2025 and the number of such meetings attended by each Director.
Scheduled Board Meetings Held Attended
Richard Horlick 4 4
Caroline Chan 4 4
Julia Chapman 4 4
Bronwyn Curtis 4 4
John Le Poidevin 4 4
John Whittle* 2 2
Audit Committee Meetings Held Attended
John Le Poidevin 4 4
Caroline Chan 4 4
Julia Chapman 4 4
Bronwyn Curtis 4 4
John Whittle* 2 2
Remuneration and Nomination Committee Meetings Held Attended
Richard Horlick 3 3
Caroline Chan 3 3
Julia Chapman 3 3
Bronwyn Curtis 3 3
John Le Poidevin 3 3
John Whittle* 1 1
Management Engagement Committee Meetings Held Attended
Richard Horlick 2 2
John Le Poidevin 2 2
Caroline Chan 2 2
Julia Chapman 2 2
Bronwyn Curtis 2 2
John Whittle* 1 1
*John Whittle joined the Board on 1 July 2025 and his attendance has been
recorded for meetings from that date.
In addition to these scheduled meetings, twelve ad-hoc committee meetings were
held during the year ended 31 December 2025, which were attended by those
Directors available at the time.
The Board has reviewed the composition, structure and diversity of the Board,
succession planning, the independence of the Directors and whether each of the
Directors has sufficient time available to discharge their duties effectively.
The Board confirms that it believes that it has an appropriate mix of skills and
backgrounds, that all of the Directors are considered to be independent in
accordance with the provisions of the AIC Code and that all Directors have the
time available to discharge their duties effectively.
The Chair’s and the other Directors’ tenures are limited to nine years, which is
consistent with the principles listed in the UK Corporate Governance Code.
During the year, the Board completed an externally facilitated recruitment
exercise to replace John Le Poidevin as a Director and made an announcement to
the market on 16 May 2025 that John Whittle was joining the Board on 1 July
2025. It is intended that John Whittle will replace John Le Poidevin as Audit
Committee Chair when John Le Poidevin steps down from the Board at the 2026 AGM.
John Whittle is a Fellow of the Institute of Chartered Accountants in England
and Wales and holds the Institute of Directors Diploma in Company Direction. He
is a highly experienced non-executive Director, specialising in London listed
funds, often acting as Audit Committee Chair.
Notwithstanding that some of the Directors sit on the boards of a number of
other listed companies, the Board notes that each appointment is non-executive
and that listed investment companies generally have a lower level of complexity
and time commitment than trading companies. Furthermore, the Board notes that
attendance of all Board and Committee meetings during the year is high and that
each Director has always shown the time commitment necessary to discharge fully
and effectively their duties as a Director.
Directors’ Interests
The Directors had the following interests in the Company, held either directly
or beneficially:
Sterling Shares
31.12.25 31.12.24
Richard Horlick 200,000 200,000
Caroline Chan 11,587 11,587
Julia Chapman 6,260 6,260
Bronwyn Curtis 33,173 33,173
John Le Poidevin 116,940 116,940
John Whittle (appointed 1 July 2025) 10,000 –
US Dollar Shares
31.12.25 31.12.24
Richard Horlick 20,000 20,000
Caroline Chan – –
Julia Chapman – –
Bronwyn Curtis – –
John Le Poidevin – –
John Whittle – –
(appointed 1 July
2025)
Directors’ Indemnity
Directors’ and Officers’ liability insurance cover is in place in respect of the
Directors.
The Directors entered into indemnity agreements with the Company which provide,
subject to the provisions of The Companies (Guernsey) Law, 2008, for an
indemnity for Directors in respect of costs which they may incur relating to the
defence of proceedings brought against them arising out of their positions as
Directors, in which they are acquitted, or judgement is given in their favour by
the Court. The agreement does not provide for any indemnification for liability
which attaches to the Directors in connection with any negligence, unfavourable
judgements and breach of duty or trust in relation to the Company.
Corporate Governance
To comply with the UK Listing Regime, the Company must comply with the
requirements of the UK Corporate Governance Code. The Company is also required
to comply with the Code of Corporate Governance issued by the Guernsey Financial
Services Commission.
The Company is a member of the AIC and by complying with the AIC Code, it is
deemed to comply with both the UK Corporate Governance Code and the Guernsey
Code of Corporate Governance.
To ensure ongoing compliance with the principles and the recommendations of the
AIC Code, the Board receives and reviews a report from the Corporate Secretary,
at each quarterly meeting, identifying whether the Company is in compliance and
recommending any changes that are necessary.
The Company has complied with the requirements of the AIC Code and the relevant
provisions of the UK Corporate Governance Code, except as set out below.
The UK Corporate Governance Code includes provisions relating to:
· the role of the chief executive;
· executive Directors’ remuneration;
· the need for an internal audit function; and
· a whistle-blowing policy.
For the reasons explained in the UK Corporate Governance Code, the Board
considers these provisions are not relevant to the position of the Company as it
is an externally managed investment Company with a Board formed exclusively of
non-executive Directors. The Company has therefore not reported further in
respect of these provisions.
The Company does not have employees, hence no whistle-blowing policy is
necessary. However, the Directors have satisfied themselves that the Company’s
service providers have appropriate whistle-blowing policies and procedures and
seek regular confirmation from the service providers that nothing has arisen
under those policies and procedures which should be brought to the attention of
the Board.
All of the Directors are independent of the Manager and any Company in the same
group as the Manager (the «Manager’s Group»).
The Company has adopted a Code of Directors’ dealings in securities.
The Company’s risk appetite and risk exposure and the effectiveness of its risk
management and internal control systems are reviewed by the Audit Committee and
by the Board at their meetings. The Board believes that the Company has adequate
and effective systems in place to identify, mitigate and manage the risks to
which it is exposed.
For new appointments to the Board, a specialist independent recruitment firm is
engaged as and when appropriate, to source potential candidates who are then
interviewed by the Directors. The current Board has a breadth of experience
relevant to the Company, and the Directors believe that any changes to the
Board’s composition can be managed without undue disruption. An induction
programme is provided for newly appointed Directors.
In line with the AIC Code, Article 21.3 of the Company’s Articles requires all
Directors to retire at each Annual General Meeting. At the Annual General
Meeting of the Company on 16 May 2025, Shareholders re-elected all the then
incumbent Directors of the Company.
The Board, through the Remuneration and Nomination Committee, regularly reviews
its composition and believes that the current and anticipated appointments
provide an appropriate range of skill, experience and diversity.
Each of the Board, the Audit Committee, the Management Engagement Committee and
the Remuneration and Nomination Committee undertakes an evaluation of their own
performance and that of individual Directors on an annual basis. In order to
review their effectiveness, the Board and its Committees carry out a process of
formal self-appraisal. The Board and the Committees consider how they function
as a whole and review the individual performance of their members. This process
is conducted by the Chair of each Committee reviewing the relevant Directors’
performance, contribution and commitment to the Company.
Bronwyn Curtis, the Senior Independent Director, takes the lead in evaluating
the performance of the Chair.
Our Culture
As the Company has no staff and the Board delegates all of the Company’s
operational requirements to third-party service providers, the Board is
responsible for setting the culture of the Company through its own activities.
The Board operates in a collegiate manner, with open dialogue and constructive
challenge supporting effective decision making and oversight. The Board meets
regularly, welcoming active engagement with and receiving detailed reports from
its service providers to enable it to discharge its duties effectively and
ensure that the serviceproviders contracted are aligned to the Company’s
strategy and culture.
The Company invests solely in the Master Fund managed by Brevan Howard Capital
Management LP. The Board notes that the culture of the Manager is centred around
people and relationships, bringing together talented and devoted individuals
with a wide range of synergistic skills and independent thinking and supporting
them in reaching their full potential by investing in their growth and
development, whilst ensuring they have the best possible tools to succeed
through market leading technology and infrastructure via a deeply collaborative
firm culture that rewards results, taking initiative and succeeding with
integrity. Further details can be found at
https://www.brevanhoward.com/culture/.
Board Performance
The performance of the Board and that of each individual Director is scheduled
for external evaluation every three years, the most recent of which was
completed in 2025.
The Board completed an externally facilitated evaluation of its effectiveness
during the year, conducted by an independent third party service provider, Trust
Associates LLP. The evaluation was finalised prior to the approval of these
financial statements and considered the composition, operation and performance
of the Board, the Board committees, the Chair and the Senior Independent
Director. No material issues were identified as a result of the review.
The Board carries out an annual internal evaluation of its performance in years
when an external evaluation is not taking place.
The Board needs to ensure that the Annual Audited Financial Statements, taken as
a whole, are fair, balanced and understandable and provide the information
necessary for Shareholders to assess the Company’s performance, business model
and strategy. In seeking to achieve this, the Directors have set out the
Company’s investment objective and policy and have explained how the Board and
its delegated Committees operate and how the Directors review the risk
environment within which the Company operates and sets appropriate risk
controls. Furthermore, throughout the Annual Report, the Board has sought to
provide further information to enable Shareholders to better understand the
Company’s business and financial performance.
Policy to Combat Fraud, Bribery and Corruption
The Board has adopted a formal policy to combat fraud, bribery and corruption.
The policy applies to the Company and to each of its Directors. Furthermore, the
policy is shared with each of the Company’s service providers and confirmation
from each of them is sought in relation to their own policies.
In respect of the UK Criminal Finances Act 2017, which introduced a new
corporate criminal offence of `failing to take reasonable steps to prevent the
facilitation of tax evasion’, the Board confirms that it is committed to
preventing the facilitation of tax evasion and takes all reasonable steps to do
so.
Social and Environmental Issues
The Board also keeps under review developments involving other social and
environmental issues, such as modern slavery, and reports on those to the extent
they are considered relevant to the Company’s operations. Further explanation of
these issues is detailed under ‘Climate Change and Environmental Social and
Governance («ESG») Risks’.
Ongoing Charges
The ongoing charges (the «Ongoing Charges») represent the Company’s management
fee and all other operating expenses, excluding finance costs, performance fees,
share issue or buyback costs and non-recurring legal and professional fees,
expressed as a percentage of the average of the daily net assets during the
year.
Ongoing Charges for the years ended 31 December 2025 and 31 December 2024 have
been prepared in accordance with the AIC’s recommended methodology.
The following table presents the Ongoing Charges for each share class of the
Company for the years ended 31 December 2025 and 31 December 2024.
31.12.25
Sterling US Dollar
Shares Shares
Company – Ongoing Charges 1.66% 1.58%
Master Fund – Ongoing Charges 0.66% 0.64%
Performance fees 0.15% 0.18%
Ongoing Charges plus performance fees 2.47% 2.40%
31.12.24
Sterling US Dollar
Shares Shares
Company – Ongoing Charges 1.58% 1.56%
Master Fund – Ongoing Charges 0.63% 0.63%
Performance fees 0.74% 0.87%
Ongoing Charges plus performance fees 2.95% 3.06%
The Master Fund’s Ongoing Charges represent the portion of the Master Fund’s
operating expenses which have been allocated to the Company. The Company invests
substantially all of its investable assets in ordinary Sterling and US Dollar
-denominated Class B shares issued by the Master Fund. These shares are not
subject to management fees and performance fees within the Master Fund. The
Master Fund’s operating expenses include an operational services fee payable to
the Manager of 1/12 of 0.5% per month of the prevailing Master Fund NAV
attributable to the Company’s investment in the Master Fund.
Audit Committee
The Company’s Audit Committee conducts formal meetings at least three times a
year for the purpose, amongst others, of considering the appointment,
independence and effectiveness of the audit and remuneration of the auditors,
and to review and recommend the Annual Audited Financial Statements and Annual
Report to the Board of Directors. It is chaired by John Le Poidevin and
comprises Bronwyn Curtis, Julia Chapman, Caroline Chan and John Whittle. The
Terms of Reference of the Audit Committee are available on the Company’s website
(www.bhmacro.com) or from the Administrator.
Management Engagement Committee
The Board has established a Management Engagement Committee which has adopted
terms of reference that set out its duties and responsibilities. The Management
Engagement Committee meets formally at least once a year, is chaired by Julia
Chapman and comprises all members of the Board.
The function of the Management Engagement Committee is to ensure that the
Company’s Management Agreement is competitive and reasonable for the
Shareholders, along with a review of the terms of the Company’s agreements with
all other third-party service providers (other than Ernst & Young LLP (the
«Independent Auditor»)). The Management Engagement Committee also monitors the
performance of all service providers on an annual basis and writes to each
service provider regarding their Business Continuity Plans. To date, all
services have proved to be robust and there has been no disruption to the
Company. The Terms of Reference of the Management Engagement Committee are
available on the Company’s website (www.bhmacro.com) or from the Administrator.
The details of the Manager’s fees and notice period are set out in note 4 to the
Annual Audited Financial Statements.
The Board continuously monitors the performance of the Manager and a formal
review of the Manager is conducted by the Management Engagement Committee
annually.
The Manager has wide experience in managing and administering investment
companies and has access to extensive investment management resources.
At its meeting on 12 September 2025, the Management Engagement Committee
concluded that the continued appointment of each of the Manager, the
Administrator, the Company’s UK and Guernsey legal advisers, Computershare
Investor Services (Guernsey) Limited (the «Registrar») and the Corporate Broker
on the terms agreed was in the interests of the Company’s Shareholders as a
whole. At the date of this report, the Board continues to be of the same
opinion.
Remuneration and Nomination Committee
The Board has established a Remuneration and Nomination Committee with formal
duties and responsibilities. The Remuneration and Nomination Committee meets
formally at least once a year, is chaired by Caroline Chan and comprises all
members of the Board.
The function of the Remuneration and Nomination Committee is to:
· regularly review the structure, size and composition of the Board and make
recommendations to the Board with regard to any changes that are deemed
necessary;
· identify, from a variety of sources, candidates to fill Board vacancies as
and when they arise with a continued focus on Board diversity;
· assess and articulate the time needed to fulfil the role of the Chair and of
a non-executive director, and undertake an annual performance evaluation to
ensure that all the members of the Board have devoted sufficient time to their
duties, and also to review their contribution to the work of the Board and the
breadth of experience of the Board as a whole; and
· annually review the levels of remuneration of each of the Chair of the
Board, the Chair of the Audit Committee, the Chair of each other Board committee
and other non-executive Directors having regard to the maximum aggregate
remuneration that may be paid under the Company’s Articles.
The Remuneration and Nomination Committee concluded its recent sourcing and
recruitment of a new Director with the appointment of John Whittle; and
announced on 16 May 2025 that John Whittle would join the Board on 1 July 2025.
Trust Associates LLP, an independent, third party provider, reviewed the levels
of remuneration of each member of the Board, the Chair of the Audit Committee,
the Chair of each Board committee, the Senior Independent Director and other non
-executive Directors. The review was finalised in 2025, and the Committee’s
recommendations, based on the review, were adopted by the Board, with effect
from 1 January 2026.
Internal Controls
Responsibility for the establishment and maintenance of an appropriate system of
internal control rests with the Board and to achieve this, processes have been
established which seek to:
· review the risks faced by the Company and the controls in place to address
those risks;
· identify and report changes in the risk environment and operational
controls, including the identification and management of emerging risks;
· identify and report on the effectiveness of controls and errors arising; and
· ensure no override of controls by the Manager, the Administrator and the
Company’s other key service providers.
A risk matrix report is tabled and discussed at each Audit Committee meeting,
and reviewed at least once a year by the Board, setting out the Company’s risk
exposure and the effectiveness of its risk management and internal control
systems. The Board believes that the Company has adequate and effective systems
in place to identify, mitigate and manage the risks to which it is exposed.
The Board has delegated the management of the Company and the administration,
corporate secretarial and registrar functions, including the independent
calculation of the Company’s NAV and the production of the Annual Report and
Audited Financial Statements, which are independently audited. Whilst the Board
delegates these functions, it remains responsible for the functions it delegates
and for the systems of internal control. Formal contractual agreements have been
put in place between the Company and the providers of these services. On an
ongoing basis, Board reports are provided at each quarterly Board meeting by the
Manager, the Corporate Broker, the Administrator and Corporate Secretary and the
Registrar. A representative from the Manager is asked to attend these meetings.
In common with most investment companies, the Company does not have an internal
audit function. All of the Company’s management functions are delegated to the
Manager, the Administrator and Corporate Secretary and the Registrar which have
their own internal audit and risk assessment functions.
Further reports are received from the Administrator in respect of compliance,
LSE continuing obligations and other matters. The reports received during the
year were reviewed by the Board. No material adverse findings were identified in
these reports.
International Tax Reporting
For the purposes of the US Foreign Account Tax Compliance Act, the Company
registered with the US Internal Revenue Services («IRS») as a Guernsey reporting
Foreign Financial Institution («FFI»), received a Global Intermediary
Identification Number (5QHZVI.99999.SL.831), and can be found on the IRS FFI
list.
The Common Reporting Standard («CRS») is a global standard for the automatic
exchange of financial account information developed by the Organisation for
Economic Co-operation and Development («OECD»). The Company made its latest
report for CRS to the Director of the Revenue Service on 26 June 2025.
Relations with Shareholders
The Board welcomes Shareholders’ views and places great importance on
communication with the Company’s Shareholders. The Board receives regular
reports on the views of Shareholders and the Chair and other Directors are
available to meet Shareholders, with a number of such meetings taking place
during the year and subsequent to the financial year end. The Company provides
weekly estimates of NAV, month end estimates and final NAVs. The Company also
provides a monthly newsletter. These are published via RNS, LSE’s Regulatory
News Services, and are also available on the Company’s website. Risk reports of
the Master Fund are also available on the Company’s website.
The Manager maintains regular dialogue with institutional Shareholders, the
feedback from which is reported to the Board. Shareholders who wish to
communicate with the Board should contact the Administrator in the first
instance.
Having reviewed the Financial Conduct Authority’s restrictions on the retail
distribution of non-mainstream pooled investments, the Company, after taking
legal advice, announced on 15 January 2014 that it is outside the scope of those
restrictions, so that its shares can continue to be recommended by UK authorised
persons to ordinary retail investors.
In accordance with the AIC Code, when 20 per cent or more of Shareholder votes
have been cast against a Board recommendation for a resolution, the Company
should explain, when announcing voting results, what actions it intends to take
to consult Shareholders in order to understand the reasons behind the result. An
update on the views received from Shareholders and actions taken should be
published no later than six months after the Shareholder meeting. The Board
should then provide a final summary in the Annual Report and, if applicable, in
the explanatory notes to resolutions at the next Shareholders’ meeting, on what
impact the feedback has had on the decisions the Board has taken and any actions
or resolutions now proposed. During the year, no resolution recommended by the
Board received 20 per cent or more votes against it.
Significant Shareholders
As at 20 March 2026, the following Shareholders had significant shareholdings in
the Company:
% holding
in class
Significant Shareholders
Sterling Shares
BH Macro Limited* 18.9%
Rathbone Nominees Limited 13.7%
Evelyn Partners Nominees Limited 10.8%
Nortrust Nominees Limited 6.5%
Lion Nominees Limited 5.2%
Pershing Nominees Limited 4.2%
Vidacos Nominees Limited 4.2%
Vestra Nominees Limited 3.6%
Cheviot Capital Nominees Limited 3.3%
Brewin Nominees Limited 3.2%
*Treasury Shares which carry no voting rights
% holding
in class
Significant Shareholders
US Dollar Shares
Vidacos Nominees Limited 15.4%
Euroclear Nominees Limited 15.1%
Rathbone Nominees Limited 14.8%
Aurora Nominees Limited 8.2%
Securities Services Nominees Limited 7.9%
Luna Nominees Limited 7.0%
Lynchwood Nominees Limited 5.8%
Cgwl Nominees Limited 3.2%
Signed on behalf of the Board by:
Richard Horlick
Chair
John Le Poidevin
Director
30 March 2026
Statement of Directors’ Responsibility in respect of the Annual Report and
Audited Financial Statements
The Directors are responsible for preparing the Annual Report and Audited
Financial Statements in accordance with applicable law and regulations.
The Companies (Guernsey) Law, 2008 requires the Directors to prepare financial
statements for each financial year. They have resolved to prepare the financial
statements in accordance with accounting principles generally accepted in the
United States of America.
The Directors, by law, must not approve the financial statements unless they are
satisfied that they give a true and fair view of the state of affairs of the
Company and of its profit or loss for that year. In preparing these financial
statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable, relevant and reliable;
state whether applicable accounting standards have been followed, subject
to any material departures disclosed and explained in the financial statements;
assess the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to the going concern basis; and
use the going concern basis of accounting unless liquidation is imminent.
The Directors are responsible for keeping proper accounting records that are
sufficient to show and explain the Company’s transactions and disclose with
reasonable accuracy at any time the financial position of the Company and enable
them to ensure that its financial statements comply with the Companies
(Guernsey) Law, 2008. They are responsible for such internal control as they
determine is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error, and have
general responsibility for taking such steps as are reasonably open to them to
safeguard the assets of the Company and to prevent and detect fraud and other
irregularities.
The Directors are responsible for the maintenance and integrity of the corporate
and financial information included on the Company’s website. Legislation in
Guernsey governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE ANNUAL FINANCIAL
REPORT
We confirm that to the best of our knowledge:
so far as each of the Directors is aware, there is no relevant audit
information of which the Company’s Independent Auditor is unaware, and each has
taken all the steps they ought to have taken as a Director to make themselves
aware of any relevant information and to establish that the Company’s
Independent Auditor is aware of that information;
the financial statements, prepared in accordance with the applicable set
of accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company; and
each of the Chair’s Statement, the Strategic Report, the Directors’
Report and the Manager’s Report includes a fair review of the development and
performance of the business and the position of the Company, together with a
description of the principal risks and uncertainties that it faces.
We consider the Annual Report and Annual Audited Financial Statements, taken as
a whole, are fair, balanced and understandable and provide the information
necessary for Shareholders to assess the Company’s position and performance,
business model and strategy.
Signed on behalf of the Board by:
Richard Horlick
Chair
John Le Poidevin
Director
30 March 2026
Directors’ Remuneration Report
31 December 2025
Introduction
An ordinary resolution for the approval of the Directors’ Remuneration Report in
the Company’s Annual Audited Financial Statements for the year ended 31 December
2024, was passed by the Shareholders at the Annual General Meeting held on 16
May 2025.
Remuneration policy
The Remuneration and Nomination Committee considers matters relating to the
Directors’ remuneration.
The Company’s policy is that the fees payable to the Directors should reflect
the time spent by the Directors on the Company’s affairs and the
responsibilities borne by the Directors and be sufficient to attract, retain and
motivate Directors of a quality required to run the Company successfully. The
Chair of the Board is paid a higher fee in recognition of his additional
responsibilities, as are the Chairs of the various Board committees and the
Senior Independent Director. The policy is to review fee rates periodically,
although such a review will not necessarily result in any changes to the rates,
and account is taken of fees paid to Directors of comparable companies.
There are no long-term incentive schemes provided by the Company and no
performance fees are paid to Directors.
No Director has a service contract with the Company but each of the Directors is
appointed by a letter of appointment which sets out the main terms of their
appointment. The Directors were appointed to the Board for an initial term of
three years and Article 21.3 of the Company’s Articles requires, as does the AIC
Code, that all of the Directors retire at each Annual General Meeting. At the
Annual General Meeting of the Company on 16 May 2025, Shareholders re-elected
all the Directors in role at that time. Director appointments can also be
terminated in accordance with the Articles. Should Shareholders vote against a
Director standing for re-election, the Director affected will not be entitled to
any compensation. A Director may resign by notice in writing to the Board at any
time.
Directors are remunerated in the form of fees, payable quarterly in arrears, to
the Director personally.
No other remuneration or compensation was paid or payable by the Company during
the year to any of the Directors apart from the reimbursement of allowable
expenses.
Directors’ fees
The fees payable by the Company in respect of each of the Directors who served
during the years ended 31 December 2025 and 31December 2024 were as follows:
Year Year
ended ended
31.12.25 31.12.24
£ £
Richard Horlick 99,000 90,000
Caroline Chan 58,000 55,000
Julia Chapman 58,000 55,000
Bronwyn Curtis 59,000 55,000
John Le Poidevin 69,000 65,000
John Whittle (appointed 1 July 2025) 26,500 –
Total 369,500 320,000
The annual aggregate limit of fees payable to Directors is £800,000 per annum.
The Remuneration and Nomination Committee appointed external providers, Trust
Associates, to carry out a review of the Directors’ fees, and their report was
considered at the most recent meeting, held on 9 December 2025. The Committee
considered the recommendations from Trust Associates to take accounts of the
increased workload for non-executive directors of investment companies,
inflation in the market for such non-executive directors since 1 July 2022 and
benchmarking against peer companies. It was concluded that the current fees
would be increased as follows effective 1 January 2026.
Fee per annum
Role £
Board Chair 110,000
Audit Committee Chair 75,000
Management Engagement Committee Chair 64,000
Remuneration and Nomination Committee Chair 64,000
Senior Independent Director 66,000
All other Directors 59,000
Caroline Chan
Remuneration and Nomination Committee Chair
30 March 2026
Report of the Audit Committee
31 December 2025
We present the Audit Committee’s (the «Committee») Report for 2025, setting out
the Committee’s structure and composition, principal duties and key activities
during the year. As in previous years, the Committee has reviewed the Company’s
financial reporting, the independence and effectiveness of the Independent
Auditor and the internal control and risk management systems of the service
providers.
Structure and Composition
The Committee is chaired by John Le Poidevin and its other members are Bronwyn
Curtis, Julia Chapman, Caroline Chan and John Whittle. It is intended that John
Whittle will become chair of the Audit Committee on the retirement of John Le
Poidevin at the 2026 AGM. In preparation for this role, John Whittle shadowed
John Le Poidevin and has been involved in all key discussions with Ernst & Young
LLP, the Company’s auditors, throughout the 2025 financial year.
Appointment to the Committee is for a period of up to three years, which may be
extended for two further three-year periods, provided that the majority of the
Committee remains independent of the Manager. John Le Poidevin and Bronwyn
Curtis are serving their third terms, Caroline Chan and Julia Chapman are
serving their second terms and John Whittle is serving his first term.
The Committee conducts formal meetings at least three times a year. The table in
the Directors’ Report sets out the number of Committee meetings held during the
year ended 31 December 2025 and the number of such meetings attended by each
Committee member. The Independent Auditor is invited to attend those meetings at
which the annual and interim reports are considered. The Independent Auditor and
the Committee will meet without representatives of either the Administrator or
the Manager being present if the Committee considers this to be necessary.
Principal Duties
The role of the Committee includes:
monitoring the integrity of the published Financial Statements of the
Company;
reviewing and reporting to the Board on the significant issues and
judgements made in the preparation of the Company’s published Financial
Statements (having regard to matters communicated by the Independent Auditor),
significant financial returns to regulators and other financial information;
monitoring and reviewing the quality and effectiveness of the Independent
Auditor and their independence;
considering and making recommendations to the Board on the appointment,
reappointment, replacement and remuneration to the Company’s Independent
Auditor; and
monitoring and reviewing the internal control and risk management systems
of the service providers.
The complete details of the Committee’s formal duties and responsibilities are
set out in the Committee’s terms of reference, which can be obtained from the
Administrator.
The independence, integrity and objectivity of the Independent Auditor is
reviewed by the Committee, which also reviews the terms under which the
Independent Auditor is appointed to perform non-audit services, which includes
consideration of the Financial Reporting Council («FRC») Revised Ethical
Standard 2024 (the «Ethical Standard»). The Committee has also established
policies and procedures for the engagement of the Company’s auditor to provide
audit, assurance and other services.
Independent Auditor
The audit and any non-audit fees proposed by the Independent Auditor each year
are reviewed by the Committee, taking into account the Ethical Standard and the
Company’s structure, operations and other requirements during the year and the
Committee makes recommendations to the Board.
Ernst & Young LLP («EY») has served as the Company’s Independent Auditor since
16 May 2025, following the replacement of KPMG Channel Islands Limited («KPMG
CI») through a formal tender process.
Key Activities in 2025
The following sections discuss the assessment made by the Committee during the
year:
Significant Financial Statement Issues
The Committee’s review of the Annual Audited Financial Statements focused on the
following area:
The Company’s investment in the Master Fund had a fair value of US$1,938 million
as at 31 December 2025 and represents substantially all the net assets of the
Company. The valuation of the investment is determined in accordance with the
Accounting Policies set out in note 3 to the Annual Audited Financial
Statements. The Financial Statements of the Master Fund for the year ended 31
December 2025 were audited by KPMG Cayman which issued an unqualified audit
opinion dated 26 March 2026. The Committee has reviewed the Financial Statements
of the Master Fund and the accounting policies and determined the fair value of
the investment as at 31 December 2025 is reasonable.
This matter was discussed during the planning and final stage of the audit and
there was no significant divergence of views between the Committee and the
Independent Auditor.
The Committee has carried out a robust assessment of the risks to the Company in
the context of making the Viability Statement in these Annual Audited Financial
Statements. Furthermore, the Committee has concluded it appropriate to continue
to prepare the Annual Audited Financial Statements on the going concern basis of
accounting.
Effectiveness of the Audit
The Committee held formal meetings with EY during the course of the year: 1)
before the start of the audit to discuss formal planning and to discuss any
potential issues and to agree the scope that would be covered; and 2) after the
audit work was concluded, to discuss the significant issues including those
stated above.
The Committee considered the effectiveness and independence of EY by using a
number of measures, including but not limited to:
reviewing the audit plan presented to them before the start of the audit;
reviewing and challenging the audit findings report including variations
from the original plan;
reviewing any changes in audit personnel; and
requesting feedback from both the Manager and the Administrator.
Further to the above, during the year ended 31 December 2025, the Committee
performed a specific evaluation of the performance of the Independent Auditor.
This was supported by the results of questionnaires completed by the Committee
covering areas such as the quality of the audit team, business understanding,
audit approach and management. There were no significant adverse findings from
the 2025 evaluation.
Audit Fees and Safeguards on Non-Audit Services
The table below summarises the remuneration paid by the Company to EY and KPMG
CI for audit and non-audit services during the years ended 31 December 2025 and
31 December 2024:
Year Year
ended ended
31.12.25 31.12.24
£ £
Annual audit 136,000 73,800
Interim review 60,000 37,275
The Audit Committee has examined the scope and results of the external audit,
its cost effectiveness and the independence and objectivity of the Independent
Auditor, with particular regard to non-audit fees, and EY, as Independent
Auditor, to be independent of the Company. Further, the Committee has obtained
EY’s confirmation that the services provided by other EY member firms to the
wider Brevan Howard organisation do not prejudice its independence.
FRC Audit Committees and External Audit Minimum Standard
During 2025, the Committee conducted a review of compliance with the FRC Audit
Committees and External Audit Minimum Standard, 2023. The Committee was
satisfied that its processes achieved a high level of adherence and where
relevant these standards are incorporated into its Terms of Reference.
Internal Control
The Committee also reviewed the need for an internal audit function and
concluded that the systems and procedures employed by the Manager and the
Administrator, including their own internal audit functions, currently provide
sufficient assurance that a sound system of internal control, which safeguards
the Company’s assets, is maintained.
The Committee examined externally prepared assessments of the control
environment in place at the Manager and the Administrator, with the Manager
providing an International Standard on Assurance Engagements («ISAE 3402»)
report and the Administrator providing a Service Organisation Control («SOC1»)
report. No significant findings have been noted during the year.
Conclusion and Recommendation
After reviewing various reports such as the operational and risk management
framework and performance reports from the Manager and the Administrator,
consulting where necessary with EY, and assessing the significant Annual Audited
Financial Statements’ issues noted in the Report of the Audit Committee, the
Committee is satisfied that the Annual Audited Financial Statements
appropriately address the critical judgements and key estimates (both in respect
of the amounts reported and the disclosures). The Committee is also satisfied
that the significant assumptions used for determining the value of assets and
liabilities have been appropriately scrutinised and challenged and are
sufficiently robust. At the request of the Board, the Audit Committee considered
and was satisfied that the 2025 Annual Report and Annual Audited Financial
Statements are fair, balanced and understandable and provide the necessary
information for Shareholders to assess the Company’s performance, business model
and strategy.
The Independent Auditor reported to the Committee that no unadjusted material
misstatements were found in the course of its work. Furthermore, both the
Manager and the Administrator confirmed to the Committee that they were not
aware of any unadjusted material misstatements including matters relating to the
presentation of the Annual Audited Financial Statements. The Committee confirms
that it is satisfied that the Independent Auditor has fulfilled its
responsibilities with diligence and professional scepticism.
For any questions on the activities of the Committee not addressed in the
foregoing, a member of the Audit Committee remains available to attend each
Annual General Meeting to respond to such questions.
John Le Poidevin
Audit Committee Chair
30 March 2026
Manager’s Report
Brevan Howard Capital Management LP («BHCM» or the «Manager») is the manager of
BH Macro Limited (the «Company») and of Brevan Howard Master Fund Limited (the
«Master Fund»). The Company invests all of its assets (net of short-term working
capital) in the ordinary shares of the Master Fund.
Performance Review
The NAV per share of the USD shares of the Company appreciated by 0.83% in 2025
and the NAV per share of the GBP shares appreciated by 1.38%.
The month-by-month NAV performance of each currency class of the Company since
it commenced operations in 2007 is set out below.
USD Jan Feb Mar Apr May Jun Jul Aug Sep
Oct Nov Dec YTD
2007 – – 0.10 0.90 0.15 2.29 2.56 3.11 5.92
0.03 2.96 0.75 20.27
2008 9.89 6.70 (2.79) (2.48) 0.77 2.75 1.13 0.75 (3.13)
2.76 3.75 (0.68) 20.32
2009 5.06 2.78 1.17 0.13 3.14 (0.86) 1.36 0.71 1.55
1.07 0.37 0.37 18.04
2010 (0.27) (1.50) 0.04 1.45 0.32 1.38 (2.01) 1.21 1.50
(0.33) (0.33) (0.49) 0.91
2011 0.65 0.53 0.75 0.49 0.55 (0.58) 2.19 6.18 0.40
(0.76) 1.68 (0.47) 12.04
2012 0.90 0.25 (0.40) (0.43) (1.77) (2.23) 2.36 1.02 1.99
(0.36) 0.92 1.66 3.86
2013 1.01 2.32 0.34 3.45 (0.10) (3.05) (0.83) (1.55) 0.03
(0.55) 1.35 0.40 2.70
2014 (1.36) (1.10) (0.40) (0.81) (0.08) (0.06) 0.85 0.01 3.96
(1.73) 1.00 (0.05) 0.11
2015 3.14 (0.60) 0.36 (1.28) 0.93 (1.01) 0.32 (0.78) (0.64)
(0.59) 2.36 (3.48) (1.42)
2016 0.71 0.73 (1.77) (0.82) (0.28) 3.61 (0.99) (0.17) (0.37)
0.77 5.02 0.19 6.63
2017 (1.47) 1.91 (2.84) 3.84 (0.60) (1.39) 1.54 0.19 (0.78)
(0.84) 0.20 0.11 (0.30)
2018 2.54 (0.38) (1.54) 1.07 8.41 (0.57) 0.91 0.90 0.14
1.32 0.38 0.47 14.16
2019 0.67 (0.70) 2.45 (0.49) 3.55 3.97 (0.66) 1.12 (1.89)
0.65 (1.17) 1.68 9.38
2020 (1.25) 5.39 18.40 0.34 (0.82) (0.54) 1.84 0.97 (1.11)
(0.01) 0.76 3.15 28.89
2021 1.21 0.31 0.85 0.16 0.26 (1.47) (0.47) 0.86 0.31
0.14 (0.09) 0.59 2.67
2022 0.74 1.77 5.27 3.80 1.09 0.76 0.12 3.11 2.46
(0.50) (1.09) 2.01 21.17
2023 1.26 (0.30) (4.11) (0.88) (1.54) (0.15) 0.92 0.34 1.08
0.88 (0.40) 1.69 (1.33)
2024 0.24 (3.13) 0.86 (1.05) 0.73 0.87 0.42 (0.60) 4.91
(2.93) 6.56 (1.63) 4.92
2025 (2.81) (1.54) (1.29) 4.47 (0.73) 1.48 (1.81) 1.18 1.60
0.62 (0.42) 0.29 0.83
GBP Jan Feb Mar Apr May Jun Jul Aug Sep
Oct Nov Dec YTD
2007 – – 0.11 0.83 0.17 2.28 2.55 3.26 5.92
0.04 3.08 0.89 20.67
2008 10.18 6.85 (2.61) (2.33) 0.95 2.91 1.33 1.21 (2.99)
2.84 4.23 (0.67) 23.25
2009 5.19 2.86 1.18 0.05 3.03 (0.90) 1.36 0.66 1.55
1.02 0.40 0.40 18.00
2010 (0.23) (1.54) 0.06 1.45 0.36 1.39 (1.96) 1.23 1.42
(0.35) (0.30) (0.45) 1.03
2011 0.66 0.52 0.78 0.51 0.59 (0.56) 2.22 6.24 0.39
(0.73) 1.71 (0.46) 12.34
2012 0.90 0.27 (0.37) (0.41) (1.80) (2.19) 2.38 1.01 1.95
(0.35) 0.94 1.66 3.94
2013 1.03 2.43 0.40 3.42 (0.08) (2.95) (0.80) (1.51) 0.06
(0.55) 1.36 0.41 3.09
2014 (1.35) (1.10) (0.34) (0.91) (0.18) (0.09) 0.82 0.04 4.29
(1.70) 0.96 (0.04) 0.26
2015 3.26 (0.58) 0.38 (1.20) 0.97 (0.93) 0.37 (0.74) (0.63)
(0.49) 2.27 (3.39) (0.86)
2016 0.60 0.70 (1.78) (0.82) (0.30) 3.31 (0.99) (0.10) (0.68)
0.80 5.05 0.05 5.79
2017 (1.54) 1.86 (2.95) 0.59 (0.68) (1.48) 1.47 0.09 (0.79)
(0.96) 0.09 (0.06) (4.35)
2018 2.36 (0.51) (1.68) 1.01 8.19 (0.66) 0.82 0.79 0.04
1.17 0.26 0.31 12.43
2019 0.52 (0.88) 2.43 (0.60) 3.53 3.82 (0.78) 1.00 (1.94)
0.47 (1.22) 1.52 7.98
2020 (1.42) 5.49 18.31 0.19 (0.85) (0.53) 1.74 0.94 (1.16)
(0.02) 0.75 3.04 28.09
2021 1.20 0.32 0.81 0.15 0.25 (1.50) (0.49) 0.87 0.40
0.27 – 0.47 2.76
2022 0.94 1.79 5.39 3.86 1.66 1.05 0.15 2.84 2.12
(0.40) (1.15) 1.88 21.91
2023 1.20 (0.28) (4.29) (0.93) (1.61) (0.25) 0.90 0.34 1.12
0.86 (0.42) 1.69 (1.81)
2024 0.36 (3.08) 0.98 (0.98) 0.76 0.91 0.41 (0.55) 5.10
(3.10) 7.00 (1.63) 5.86
2025 (2.76) (1.47) (1.21) 4.55 (0.73) 1.51 (1.81) 1.21 1.71
0.63 (0.41) 0.35 1.38
Source: Master Fund NAV data is provided by the administrator of the Master
Fund, State Street Fund Services (Ireland) Limited. The Company’s NAV and NAV
per Share data is provided by the Company’s administrator, Northern Trust
International Fund Administration Services (Guernsey) Limited.
The Company’s NAV per Share % Monthly Change is calculated by BHCM.
The Company’s NAV data is unaudited and net of all investment management and
performance fees and all other fees and expenses payable by the Company. In
addition, the Company’s investment in the Master Fund is subject to an
operational services fee.
NAV performance is provided for information purposes only. Shares in the Company
do not necessarily trade at a price equal to the prevailing NAV per Share.
Data as at 31 December 2025.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS
Quarterly and Annual contribution (%) to the performance of the NAV per Share of
the Company’s USD Shares (net of fees and expenses) by asset class*
This information is given in USD (US$)
+—-+—–+—–+———–+——+——+——-+——————-+—–+
| |Rates|FX |Commodities|Credit|Equity|Digital|Discount Management|TOTAL|
| | | | | | |Assets | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
|Q1 |-1.12|-3.90|0.11 |-0.27 |0.29 |-0.65 |0.00 |-5.54|
|2025| | | | | | | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
|Q2 |1.34 |1.53 |0.23 |-0.01 |1.96 |0.19 |0.00 |5.24 |
|2025| | | | | | | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
|Q3 |-1.33|-1.17|0.81 |-0.02 |2.24 |0.40 |0.00 |0.94 |
|2025| | | | | | | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
|Q4 |-0.20|-1.22|0.99 |0.27 |1.82 |-1.26 |0.10 |0.49 |
|2025| | | | | | | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
|2025|-1.38|-4.84|2.13 |-0.02 |6.18 |-1.34 |0.10 |0.83 |
| | | | | | | | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
Data as at 31 December 2025.
Quarterly and YTD figures are calculated by BHCM as at 31 December 2025, based
on performance data for each period provided by the Company’s administrator,
Northern Trust. Figures rounded to two decimal places.
Quarterly and Annual contribution (%) to the performance of the NAV per Share of
the Company’s GBP Shares (net of fees and expenses) by asset class*
This information is given in GBP (£)
+—-+—–+—–+———–+——+——+——-+——————-+—–+
| |Rates|FX |Commodities|Credit|Equity|Digital|Discount Management|TOTAL|
| | | | | | |Assets | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
|Q1 |-1.09|-3.88|0.11 |-0.27 |0.29 |-0.65 |0.14 |-5.35|
|2025| | | | | | | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
|Q2 |1.33 |1.53 |0.23 |-0.01 |1.96 |0.18 |0.12 |5.34 |
|2025| | | | | | | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
|Q3 |-1.38|-1.20|0.80 |-0.02 |2.23 |0.40 |0.23 |1.08 |
|2025| | | | | | | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
|Q4 |-0.22|-1.23|0.98 |0.27 |1.80 |-1.27 |0.25 |0.58 |
|2025| | | | | | | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
|2025|-1.43|-4.87|2.12 |-0.02 |6.19 |-1.36 |0.74 |1.38 |
| | | | | | | | | |
+—-+—–+—–+———–+——+——+——-+——————-+—–+
Data as at 31 December 2025.
Quarterly and YTD figures are calculated by BHCM as at 31 December 2025, based
on performance data for each period provided by the Company’s administrator,
Northern Trust. Figures rounded to two decimal places.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS
Methodology and Definition of Contribution to Performance:
Attribution by asset class is produced at the instrument level, with adjustments
made based on risk estimates.
*The above asset classes are categorised as follows:
«Rates»: interest rates markets
«FX»: FX forwards and options
«Commodities»: commodity futures and options
«Credit»: corporate and asset-backed indices, bonds and CDS
«Equity»: equity markets including indices and other derivatives
«Digital Assets»: crypto-currencies including derivatives
«Discount Management»: buyback activity or shares from treasury
Performance and Economic Outlook Commentary
The main focus for markets in 2025 was the Trump Administration’s policy agenda.
Out of the twelve biggest market moves, six of them were directly related to
President Trump’s announcements about tariffs, five were related to data
releases (mostly US employment reports) and one was caused by the October
Federal Open Market Committee press conference. If the start of this year is any
guide, we expect Trump-related policy volatility to continue in 2026.
Despite widespread concerns about potential recession sparked by tariffs, the US
and global economy look to have posted respectable growth outturns in 2025. In
the event, tariffs were smaller than initially threatened, other countries
didn’t retaliate for the most part, and economists probably exaggerated the
downside risks from what amounted to a tax of 1% of US GDP. Combined with the
One Big Beautiful Bill Act fiscal package passed mid-year, the overall stance of
US fiscal policy was modestly expansionary. In the second half of the year, most
global economies gained momentum.
Inflation developments were mixed. In the US, there was no progress in bringing
down inflation, as small declines in housing and non-housing services inflation
were offset by a jump in goods price inflation. Going forward, goods price
inflation may peak as the one-time increase in tariffs is passed on and services
inflation may slow further still. Outside the US, Japan’s inflation continued to
be powered by the weak Yen, easy monetary policy and potentially expansionary
fiscal policy. Inflation in the Euro area was heading to its 2% target but
remained stubbornly elevated in the UK. Importantly for the global economy,
China’s trade surplus reached a new record high, and its goods exports were a
disinflationary impetus.
Looking forward, President Trump seems increasingly focused on the midterm
elections in the Fall. The affordability agenda is the key to victory. However,
the domestic policy shelf is in our view relatively bare. There may be some
tinkering with Executive Actions, but most consequential policies would require
legislation. With narrow Republican working majorities in the House and Senate,
there’s little hope of further fiscal stimulus, housing reform, crypto
regulation, and so on. Frustrated at home, President Trump may turn to the
international scene. 2026 has already seen a military operation in Venezuela,
spotlight on the future of Greenland, and military pressure on Iran. Perhaps the
most important international development may be an uneasy détente between the US
and China. Contrary to the trade-related friction earlier in 2025, the upcoming
April 2026 summit meeting in Beijing could produce the outlines of further
cooperation between the two superpowers, a development that might reduce
geopolitical risk premium.
The macro impact of the material changes in US policies has been felt in the
depreciation in the exchange value of the US Dollar and boom in US Dollar
-alternatives like gold, as investors hedged some of their exposure to US
markets. In addition, investors injected some term premium into the US bond
market because of concerns about US fiscal sustainability and policy
unpredictability. US equities performed well in absolute terms but disappointed
in relative terms to other significant equity markets, even controlling for US
Dollar depreciation. Investors are clearly looking to diversify their geographic
exposure to risk assets.
With Kevin Warsh nominated as the next Chair of the Federal Reserve Board
(«Fed»), there will be turnover in leadership starting at the end of Chair
Powell’s term in May. The last three Fed Chair transitions have been relatively
tranquil. However, Warsh has advocated for rate cuts and fundamental change,
ranging from a smaller balance sheet to a cultural overhaul of the Fed. He will
have his work cut out for him given that his colleagues do not share many of his
views.
Elsewhere, other central banks are on hold or recalibrating. In Australia
(sometimes a leading indicator), the Reserve Bank of Australia raised rates and
promised to resist inflationary pressures. Japan is still raising rates slowly
in a deliberate effort to remain behind the curve given its history of
deflation. The European Central Bank is on hold while the Bank of England is
slowly inching rates down. Emerging market economies are getting renewed
attention with a mix of prospects depending on how tied in they are with China.
North Asia faces disinflationary pressures while Latin America and Central and
Eastern Europe confront stubborn services inflation.
With this landscape of macro dispersion and geopolitical uncertainty across all
regions, markets are likely to remain extremely interesting.
Brevan Howard Capital Management LP,
acting by its sole general partner,
Brevan Howard Capital Management Limited.
30 March 2026
Independent Auditor’s Report to the Members of BH Macro Limited
Opinion
We have audited the financial statements of BH Macro Limited (the «Company») for
the year ended 31 December 2025 which comprise the Audited Statement of Assets
and Liabilities, the Audited Statement of Operations, the Audited Statement of
Changes in Net Assets, the Audited Statement of Cash Flows and the related notes
1 to 11, including a summary of significant accounting policies. The financial
reporting framework that has been applied in their preparation is applicable law
and United States Generally Accepted Accounting Principles («US GAAP»).
In our opinion, the financial statements:
► give a true and fair view of the state of the Company’s affairs as at 31
December 2025 and of its net increase in net assets resulting from operations
for the year then ended;
► have been properly prepared in accordance with US GAAP; and
► have been properly prepared in accordance with the requirements of the
Companies (Guernsey) Law, 2008.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(ISAs) and applicable law. Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the
financial statements section of our report. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our
opinion. We are independent of the Company in accordance with the ethical
requirements that are relevant to our audit of the financial statements, as
required by the Crown Dependencies’ Audit Rules and Guidance, as applied to
Guernsey incorporated Market Traded Companies, including the UK FRC’s Ethical
Standard as applied to listed public interest entities, and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not
provided to the Company and we remain independent of the Company in conducting
the audit.
Overview of our audit approach
Key audit Misstatement of the valuation of the Company’s investment in
matters Brevan Howard Master Fund Limited (the «Master Fund»)
Materiality Overall materiality of £39.6m which represents 2% of Net Assets.
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation
of performance materiality determine our audit scope for the Company. This
enables us to form an opinion on the financial statements. We take into account
size, risk profile, the organisation of the Company and effectiveness of
controls, changes in the business environment and the potential impact of
climate change when assessing the level of work to be performed. All audit work
was performed directly by the audit engagement team.
Climate change
The Company has explained climate-related risks in the Principal Risks and
Uncertainties section of the Strategic Report and forms part of the «Other
information», rather than the audited financial statements. Our procedures on
these disclosures therefore consisted solely of considering whether they are
materially inconsistent with the financial statements or our knowledge obtained
during the course of the audit or otherwise appear to be materially misstated.
The Directors have concluded that there is no direct impact of climate change on
the financial statements at 31 December 2025.
Based on our work we have not identified the impact of climate change on the
financial statements to be a key audit matter or to impact a key audit matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of
most significance in our audit of the financial statements of the current
period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in our opinion thereon, and we do not
provide a separate opinion on these matters.
+—————+————————————————————–+
|Risk |Our response to the risk |
+—————+————————————————————–+
|Misstatement of|Our audit procedures consisted of: |
|the valuation | |
|of the |At the Company level: |
|Company’s | |
|investment in |Confirming our understanding of the Company’s processes and |
|Brevan Howard |methodologies, for valuing investments in accordance with the |
|Master Fund |practical expedient per Accounting Standard Codification (ASC)|
|Limited (the |Topic 820 Fair Value Measurement; |
|»Master Fund») | |
| |Obtaining a confirmation, from the Master Fund’s independent |
|$1,938,053,000 |administrator of the class, number of shares, and value per |
|(2024: |share for both the US Dollar and Sterling Class B shares and |
|$1,911,988,000)|reconciling these to the net asset values used in the |
| |valuation of the investment; and |
|Refer to the | |
|Report of the |Agreeing the value of the Company’s investment in the Master |
|Audit |Fund as per its accounting records to the Master Fund’s |
|Committee; and |coterminous audited financial statements; |
|Note 3 of the | |
|Financial |At the Master Fund level: |
|Statements | |
|(`Valuation of |Obtaining the audited control reports to understand the |
|investments’ |relevant processes and controls in place at the key service |
|section) |providers i.e. Brevan Howard Capital management LP, Coremont |
| |LLP and the Administrator (State Street Fund Services |
|The value of |(Ireland) Limited) involved in compiling and maintaining the |
|the Company’s |accounting records of the Master Fund. |
|investment in |In reviewing the respective control reports we understood |
|the Master Fund|whether there were any modifications to the responsible |
|is measured |external audit firm’s report and we specifically considered |
|using the Net |the results of the control testing as set out in the control |
|Asset Value |reports impacting the existence, and valuation of the |
|(«NAV») of the |significant balances contributing to Master Fund’s Net Assets |
|Master Fund as |consisting of: |
|a practical | |
|expedient under|Investments in securities, derivative contracts, and |
|ASC 820 – Fair |investments purchased/sold under agreements to |
|Value |resell/repurchase, at fair value; |
|Measurement. | |
| |Securities sold short, at fair value; |
|Due to the | |
|significance of|Derivative contracts, at fair value; |
|the account | |
|balance to the |Due from/(to) brokers; |
|financial | |
|statements as a|and Cash |
|whole, any | |
|misstatement in|Reviewing the audited financial statements of the Master Fund |
|the Master |to determine: |
|Fund’s NAV | |
|could result in|Whether the underlying fund disclosed that it is an investment|
|a material |company following the accounting and reporting guidance in ASC|
|misstatement in|Topic 946; and |
|the Company’s | |
|financial |Whether the underlying fund applied ASC 820 to determine the |
|statements. |fair value of its investments. |
| | |
|The value of | |
|the Company’s | |
|investment may | |
|be misstated | |
|due to error or| |
|misstatement in| |
|the NAV of the | |
|Master Fund. | |
| | |
|As a result of | |
|such risk, | |
|misstatement in| |
|the investment | |
|valuation could| |
|have a | |
|significant | |
|impact on the | |
|net asset value| |
|of the Company | |
|and the total | |
|return | |
|generated for | |
|shareholders. | |
+—————+————————————————————–+
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in
evaluating the effect of identified misstatements on the audit and in forming
our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the
aggregate, could reasonably be expected to influence the economic decisions of
the users of the financial statements. Materiality provides a basis for
determining the nature and extent of our audit procedures.
We determined materiality for the Company to be $39.6 million, which is 2% of
Net Assets. We believe that Net Assets provides us with the best measure of
materiality as it is the Company’s primary performance measure for internal and
external reporting.
During the course of our audit, we reassessed initial materiality and elected to
update materiality at 31 December 2025 as, in our professional judgment, it was
more appropriate to use the actual results for the financial year.
Performance materiality
The application of materiality at the individual account or balance level. It
is set at an amount to reduce to an appropriately low level the probability that
the aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the
Company’s overall control environment, our judgement was that performance
materiality was 50% of our planning materiality, namely $19.8m. We have set
performance materiality at this percentage due to this being our first year
engaged as external auditor of the Company.
Reporting threshold
An amount below which identified misstatements are considered as being clearly
trivial.
We agreed with the Audit Committee that we would report to them all uncorrected
audit differences in excess of $2.0m, which is set at 5% of planning
materiality, as well as differences below that threshold that, in our view,
warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures
of materiality discussed above and in light of other relevant qualitative
considerations in forming our opinion.
Other information
Management is responsible for the other information. The other information
comprises the information included in the Annual Report, other than the
financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information
and, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is
to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our
knowledge obtained in the course of the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that
there is a material misstatement of the other information, we are required to
report that fact.
We have nothing to report in this regard.
Report on other legal and regulatory requirements
Guernsey Company Law exception reporting
We have nothing to report in respect of the following matters in relation to
which the Companies (Guernsey) Law, 2008 requires us to report to you if, in our
opinion:
► proper accounting records have not been kept by the Company; or
► the financial statements are not in agreement with the Company’s
accounting records and returns; or
► we have not received all the information and explanations we require for
our audit.
Corporate Governance Statement
We have reviewed the Directors’ statement in relation to going concern, longer
-term viability and that part of the Corporate Governance Statement relating to
the Company’s compliance with the provisions of the UK Corporate Governance Code
specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each
of the following elements of the Corporate Governance Statement is materially
consistent with the financial statements or our knowledge obtained during the
audit:
► Directors’ statement with regards to the appropriateness of adopting the
going concern basis of accounting and any material uncertainties identified in
the Directors’ Report;
► Directors’ explanation as to its assessment of the Company’s prospects,
the period this assessment covers and why the period is appropriate in the
Directors’ Report;
► Director’s statement on whether it has a reasonable expectation that the
Company will be able to continue in operation and meets its liabilities in the
Directors’ Report;
► Directors’ statement on fair, balanced and understandable in the
Directors’ Report;
► Board’s confirmation that it has carried out a robust assessment of the
emerging and principal risks in the Strategic Report;
► The section of the Annual Report that describes the review of
effectiveness of risk management and internal control systems in the Directors’
Report; and;
► The section describing the work of the Audit Committee in the Report of
the Audit Committee.
Responsibilities of Directors
As explained more fully in the Statement of Directors’ Responsibility in respect
of the Annual Report and Audited Financial Statements, the Directors are
responsible for the preparation of the financial statements and for being
satisfied that they give a true and fair view, and for such internal control as
the Directors determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the Directors are responsible for
assessing the Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment
and maintain professional scepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
· Obtain an understanding of internal control relevant to the audit in order
to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control.
· Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.
· Conclude on the appropriateness of the management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue
as a going concern.
· Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the financial
statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance
with Section 262 of the Companies (Guernsey) Law, 2008. Our audit work has been
undertaken so that we might state to the Company’s members those matters we are
required to state to them in an auditor’s report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company and the Company’s members as a body, for our
audit work, for this report, or for the opinions we have formed.
Other matter – Predecessor Auditor
The Financial statements of the Company for the year ended 31 December 2024 were
audited by another firm of auditors whose report, dated 27 March 2025, expressed
an unmodified opinion on those statements.
Richard Geoffrey Le Tissier
for and on behalf of Ernst & Young LLP
Guernsey
30 March 2026
Audited Statement of Assets and Liabilities
As at 31 December 2025
31.12.25 31.12.24
US$’000 US$’000
Assets
Investment in 1,938,053 1,911,988
the Master Fund
(note 3)
Master Fund 19,167 45,111
redemption
proceeds
receivable
Prepaid expenses 98 31
Cash and bank 26,589 42,122
balances
denominated in
Sterling
Cash and bank 4,798 3,111
balances
denominated in
US Dollars
Total assets 1,988,705 2,002,363
Liabilities
Performance fees 3,068 14,536
payable (note 4)
Management fees 2,531 2,667
payable (note 4)
Purchase of 1,288 498
shares into
treasury payable
Accrued expenses 593 164
and other
liabilities
Administration 156 155
fees payable
(note 4)
Total 7,636 18,020
liabilities
Net assets 1,981,069 1,984,343
Number of shares
in issue (note
5)
Sterling shares 315,526,112 342,211,496
US Dollar shares 23,824,541 27,478,960
Net asset value
per share (notes
7 and 9)
Sterling shares £4.41 £4.35
US Dollar shares US$4.52 US$4.48
See accompanying Notes to the Annual Audited Financial Statements.
Signed on behalf of the Board by:
Richard Horlick
Chair
John Le Poidevin
Director
30 March 2026
Audited Statement of Operations
For the year ended 31 December 2025
01.01.25 01.01.24
to 31.12.25 to 31.12.24
US$’000 US$’000
Net investment gain allocated from the
Master Fund
Interest income 164,190 111,463
Dividend and other income (net of
dividend withholding tax
31 December 2025: US$120,640; 31 3,905 13,879
December 2024: US$100,043)
Expenses (123,299) (92,649)
Net investment gain allocated from the 44,796 32,693
Master Fund
Company income
Bank interest income 429 825
Foreign exchange gains 141,278 –
Total Company income 141,707 825
Company expenses
Performance fees (note 4) 3,073 14,819
Management fees (note 4) 29,667 29,967
Other expenses 2,381 886
Directors’ fees 479 409
Administration fees (note 4) 305 307
Foreign exchange losses – 34,544
Total Company expenses 35,905 80,932
Net investment gain/(loss) 150,598 (47,414)
Net realised and unrealised gain/(loss)
on investments allocated from the
Master Fund
Net realised gain on investments 100,605 44,345
Net unrealised (loss)/gain on (100,064) 61,300
investments
Net realised and unrealised gain on 541 105,645
investments allocated from the Master
Fund
Net increase in net assets resulting 151,139 58,231
from operations
See accompanying Notes to the Annual Audited Financial Statements.
Audited Statement of Changes in Net Assets
For the year ended 31 December 2025
01.01.25 01.01.24
to to 31.12.24
31.12.25
US$’000 US$’000
Net increase
in net
assets
resulting
from
operations
Net 150,598 (47,414)
investment
gain/(loss)
Net realised 100,605 44,345
gain on
investments
allocated
from the
Master Fund
Net (100,064) 61,300
unrealised
(loss)/gain
on
investments
allocated
from the
Master Fund
151,139 58,231
Share
capital
transactions
Purchase of
shares into
treasury
Sterling (153,114) (148,419)
shares
US Dollar (1,299) –
shares
Total share (154,413) (148,419)
capital
transactions
Net decrease (3,274) (90,188)
in net
assets
Net assets 1,984,343 2,074,531
at the
beginning of
the year
Net assets 1,981,069 1,984,343
at the end
of the year
See accompanying Notes to the Annual Audited Financial Statements.
Audited Statement of Cash Flows
For the year ended 31 December 2025
01.01.25 01.01.24
to 31.12.25 to31.12.24
US$’000 US$’000
Cash flows
from operating
activities
Net increase 151,139 58,231
in net assets
resulting from
operations
Adjustments to
reconcile net
increase in
net assets
resulting from
operations
to net cash
generated from
operating
activities:
Net investment (44,796) (32,693)
gain allocated
from the
Master Fund
Net realised (100,605) (44,345)
gain on
investments
allocated from
the Master
Fund
Net unrealised 100,064 (61,300)
loss/(gain) on
investments
allocated from
the Master
Fund
Purchase of (28,183) –
investment in
the Master
Fund
Proceeds from 212,584 205,961
sale of
investment in
the Master
Fund
Foreign (141,278) 34,544
exchange
(gains)/losses
(Increase)/decr (67) 16
ease in
prepaid
expenses
(Decrease)/incr (11,468) 14,534
ease in
performance
fees payable
Decrease in (136) (104)
management
fees payable
Increase in 429 16
accrued
expenses and
other
liabilities
Increase in 1 75
administration
fees payable
Net cash 137,684 174,935
generated from
operating
activities
Cash flows
from financing
activities
Purchase of (153,623) (149,398)
own shares
into treasury
Net cash used (153,623) (149,398)
in financing
activities
Change in cash (15,939) 25,537
and bank
balances
Cash and bank 45,233 19,651
balances,
beginning of
the year
Effect of 2,093 45
exchange rate
fluctuations
Cash and bank 31,387 45,233
balances, end
of the year
Cash and bank
balances, end
of the year
Cash and bank 26,589 42,122
balances
denominated in
Sterling1
Cash and bank 4,798 3,111
balances
denominated in
US Dollars
31,387 45,233
1 Cash and 19,732 33,664
bank balances
in Sterling
(GBP’000)
See accompanying Notes to the Annual Audited Financial Statements.
Notes to the Annual Audited Financial Statements
For the year ended 31 December 2025
1. The Company
BH Macro Limited (the «Company») is a limited liability closed-ended investment
Company which was incorporated in Guernsey on 17 January 2007 and admitted to
the Official List of the London Stock Exchange («LSE») later that year.
The Company’s ordinary shares are issued in Sterling and US Dollars.
2. Organisation
The Company is organised as a feeder fund and seeks to achieve its investment
objective by investing all of its investable assets, net of short-term working
capital requirements, in the ordinary Sterling and US Dollar-denominated Class B
shares issued by Brevan Howard Master Fund Limited (the «Master Fund») and, as
such, the Company is directly and materially affected by the performance and
actions of the Master Fund.
The Master Fund is an open-ended investment company with limited liability
formed under the laws of the Cayman Islands on 22 January 2003. The investment
objective of the Master Fund is to generate consistent long-term appreciation
through active leveraged trading and investment on a global basis. The Master
Fund employs a combination of investment strategies that focus primarily on
economic change and monetary policy and market inefficiencies. The underlying
philosophy is to construct strategies, often contingent in nature with superior
risk/return profiles, whose outcome will often be crystallised by an expected
event occurring within a pre-determined period of time. New trading strategies
will be added as investment opportunities present themselves.
As such, the Annual Audited Financial Statements of the Company should be read
in conjunction with the Financial Statements of the Master Fund which can be
found on the Company’s website, www.bhmacro.com.
At the date of these Annual Audited Financial Statements, there were four other
feeder funds in operation in addition to the Company that invest all of their
assets (net of working capital) in the Master Fund. Furthermore, other funds
managed by the Manager invest some of their assets in the Master Fund as at the
date of these Annual Audited Financial Statements.
Off-Balance Sheet, market and credit risks of the Master Fund’s investments and
activities are discussed in the notes to the Master Fund’s Annual Audited
Financial Statements. The Company’s investment in the Master Fund exposes it to
various types of risk, which are associated with the financial instruments and
markets in which the Brevan Howard underlying funds invest.
Market risk represents the potential loss in value of financial instruments
caused by movements in market factors including, but not limited to, market
liquidity, investor sentiment and foreign exchange rates.
The Manager
Brevan Howard Capital Management LP (the «Manager») is the manager of the
Company. The Manager is a Jersey limited partnership, the general partner of
which is Brevan Howard Capital Management Limited, a Jersey limited Company (the
«General Partner»). The General Partner is regulated in the conduct of fund
services business by the Jersey Financial Services Commission pursuant to the
Financial Services (Jersey) Law, 1998 and the Orders made thereunder.
The Manager also manages the Master Fund and in that capacity, as at the date of
these Annual Audited Financial Statements, has delegated the function of
investment management of the Master Fund to Brevan Howard Investment Management
Limited, Brevan Howard (Hong Kong) Limited, Brevan Howard Investment Products
Limited, Brevan Howard US Investment Management LP, Brevan Howard Private
Limited, Brevan Howard (Tel Aviv) Limited and BH-DG Systematic Trading LLP.
In order to reflect the increased investment of the Company in the Master Fund
in February 2023 as a result of the Initial Issue of shares raising gross
proceeds of approximately £312.3m for the Sterling share class and US$3.3m for
the US Dollar share class, the Company and the Manager agreed to a number of
amendments to the Management Agreement, including the terms on which the
Company’s investment in the Master Fund could be redeemed in order to provide
the Manager with more operational certainty regarding the Company’s investment
in the Master Fund. Certain of these changes, which did not require Shareholder
approval, are noted below.
The Company will ordinarily be required to provide 12 months’ notice of the
redemption of all or some of its investment in the Master Fund, except as may be
required to fund the Company’s specific working capital requirements and, up to
a maximum amount equal to five per cent of each class of the Company’s holding
of Master Fund shares every month, to finance on-market share buybacks. As such,
any redemption of all or part of the Company’s investment in the Master Fund on
a winding up of the Company or to finance a tender offer or a class closure
resolution will be required to be on 12 months’ notice. In those cases, the
Company would only receive the proceeds of redemption from the Master Fund (and,
therefore, Shareholders would only receive payment from the Company) after the
redemption date at the end of the 12-month notice period and the Company (and,
therefore, Shareholders) would remain exposed to the investment performance of
the Master Fund in the intervening period to that redemption date.
In other changes to the Management Agreement, the circumstances in which the
Company can terminate the Management Agreement and redeem its investment in the
Master Fund on less than 12 months’ notice includes certain «cause» events
affecting the Manager, in which case the Company would be entitled to terminate
the Management Agreement on 90 days’ notice and redeem its investment in the
Master Fund on three months’ notice.
The annual buyback allowance fee arrangements introduced in 2021 would continue
to apply in respect of repurchases and redemptions by the Company of its shares
of each class in excess of a number equal to five per cent of shares in issue of
the relevant class at the end of the prior calendar year.
See also note 8 for further details relating to redemptions from the Master Fund
for discount management mechanisms.
3. Significant accounting policies
These Annual Audited Financial Statements, which give a true and fair view, are
prepared in accordance with United States Generally Accepted Accounting
Principles and comply with The Companies (Guernsey) Law, 2008. The functional
and reporting currency of the Company is US Dollars which is the currency of the
primary economic environment in which the Company operates.
Going Concern
As further described in the Directors’ Report, the Directors are not aware of
any material uncertainties which may cast significant doubt upon the Company’s
ability to continue as a going concern for at least 12 months from the date of
approval of these Financial Statements and, accordingly, these Annual Audited
Financial Statements have been prepared using the going concern basis of
accounting.
The Board continues to monitor the ongoing impact of various geopolitical events
but has concluded that the biggest threat to the Company remains the failure of
a key service provider to maintain business continuity and resiliency. The Board
has assessed the measures in place by key service providers to maintain business
continuity and, so far, has not identified any significant issues that affect
the Company. The financial position of the Company has not been negatively
impacted by geopolitical events and the Board is confident that these events
have not impacted the going concern assessment of the Company.
Results of the February 2026 class closure resolutions are discussed in note 8.
The Company is an investment Company which has applied the provisions of
Accounting Standards Codification («ASC») 946.
Recent accounting pronouncements
The Company has not early adopted any standards, interpretations or amendments
that have been issued but are not yet effective and is currently evaluating the
potential impact on the Annual Audited Financial Statements.
The following are the significant accounting policies adopted by the Company:
Valuation of investments
The Company records its investment in the Master Fund based on the reported NAV
as a practical expedient under ASC Topic 820. As at 31 December 2025, the
Company was the sole investor in the Master Fund’s ordinary Sterling and US
Dollar Class B shares as disclosed in the table below. Investments for which
fair value is measured using NAV per share as a practical expedient have not
been categorised within the fair value hierarchy. Within the table below, the
Company’s investment in each share class in the Master Fund is included, with
the overall total investment shown in the Audited Statement of Assets and
Liabilities.
Percentage NAV per Shares Investment Investment
of Share held in in Master in Master
the Fund Fund
Master
Fund
Master (Class B) (Class B) CCY ‘000 US$’000
Fund’s
capital
31
December
2025
Sterling 16.60% £7,270.87 187,303 £1,361,858 1,835,105
US 0.93% US$7,306.71 14,088 US$102,948 102,948
Dollar
1,938,053
31
December
2024
Sterling 14.95% £7,101.86 201,713 £1,432,534 1,792,458
US 1.00% US$7,126.07 16,772 US$119,530 119,530
Dollar
1,911,988
The valuation and classification of securities held by the Master Fund is
discussed in the notes to the Master Fund’s Annual Audited Financial Statements
which are available on the Company’s website, www.bhmacro.com.
Income and expenses
The Company records monthly its proportionate share of the Master Fund’s income,
expenses and realised and unrealised gains and losses. In addition, the Company
accrues its own income and expenses.
Use of estimates
The preparation of the Annual Audited Financial Statements in accordance with
United States Generally Accepted Accounting Principles requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
these Annual Audited Financial Statements and the reported amounts of increases
and decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
Foreign exchange
Transactions reported in the Audited Statement of Operations are translated into
US Dollar amounts at the date of such transactions. Assets and liabilities
denominated in foreign currencies are translated into US Dollars at the exchange
rate at the reporting date. The share capital and other capital reserves are
translated at the historic rate ruling at the date of the transaction.
Investment securities and other assets and liabilities of the Sterling share
class are translated into US Dollars, the Company’s reporting currency, using
exchange rates at the reporting date. The Audited Statement of Operations’ items
of the Sterling share class are converted into US Dollars using the average
exchange rate. Exchange differences arising on translation are included in
foreign exchange gains or losses in the Audited Statement of Operations. This
foreign exchange adjustment has no effect on the value of net assets allocated
to the individual share classes.
Cash and bank balances
Cash and bank balances comprise demand deposits.
Allocation of results of the Master Fund
Net realised and unrealised gains or losses of the Master Fund are allocated to
the Company’s share classes based upon the percentage ownership of the
equivalent Master Fund class.
Treasury shares
Where the Company has purchased its own share capital, the consideration paid,
which includes any directly attributable costs, has been recognised as a
deduction from equity Shareholders’ funds through the Company’s reserves.
Where such shares have been subsequently sold or reissued to the market, any
consideration received, net of any directly attributable incremental transaction
costs, is recognised as an increase in equity Shareholders’ funds through the
share capital account. Where the Company cancels treasury shares, no further
adjustment is required to the share capital account of the Company at the time
of cancellation. Shares held in treasury are excluded from calculations when
determining NAV per share as detailed in note 7 and in the `Financial
highlights’ in note 9.
Refer to note 5 for details of sales of shares from treasury or purchases by the
Company of its share capital.
Segment reporting
The Company adopted Financial Accounting Standards Board Accounting Standards
Update 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable
Segment Disclosures («ASU 2023-07»). Adoption of ASU 2023-07 impacted financial
statement disclosures only and did not affect the Company’s financial position
or the results of its operations. An operating segment is defined as a component
of a public entity that engages in business activities from which it may
recognize revenues and incur expenses, has operating results that are regularly
reviewed by the public entity’s chief operating decision maker («CODM») to make
decisions about resources to be allocated to the segment and assess its
performance, and has discrete financial information available. The executive
leadership of the Company acts as the Company’s CODM. The Company represents a
single operating segment, as the CODM monitors the investment activity and cash
flow of the Company as a whole. The financial information disclosed in the
Company’s financial statements in the form of Net investment gain/(loss), Net
realised and unrealised gain on investments allocated from the Master Fund and
Net increase in net assets resulting from operations are used by the CODM to
assess the Company’s performance and to make resource allocation decisions for
the Company’s singular operating segment.
4. Management Agreement and administration agreement
Management fee and performance fee
The Company has entered into the Management Agreement with the Manager to manage
the Company’s investment portfolio. The management fee charged to the Company is
reduced by the Company’s share of management fees incurred by the Master Fund
through any underlying investments of the Master Fund that share the same
manager as the Company. Effective from 1 July 2021, the management fee charged
was 1/12 of 1.5% per month of the NAV. The investment in the Class B shares of
the Master Fund is not subject to management fees, but is subject to an
operational services fee payable to the Manager of 1/12 of 0.5% per month of the
Master Fund NAV, attributable to the Company’s investment in the Master Fund.
During the financial year ended 31 December 2025, US$29,667,383 (year ended 31
December 2024:US$29,966,995) was earned by the Manager as net management fees.
At 31 December 2025, US$2,530,974 (31 December 2024: US$2,667,015) of the
management fee remained outstanding.
The Manager is also entitled to an annual performance fee for both share
classes. The performance fee is equal to 20% of the appreciation in the NAV per
share of that class during the period of twelve months ending on 31 December in
each year (the «calculation period») which is above the base NAV per share of
that class, other than that arising to the remaining shares of the relevant
class from any repurchase, redemption or cancellation of any share in the
calculation period. The base NAV per share is the greater of the NAV per share
of the relevant class at the time of issue of such share and the highest NAV per
share achieved as at the end of any previous calculation period.
The Manager will be paid an estimated performance fee on the business day
preceding the last business day of each calculation period. Within 5 business
days of the publication of the final NAV of each class of shares as at the end
of the calculation period, any difference between the actual performance fee and
the estimated amount will be paid to or refunded by the Manager, as appropriate.
Any accrued performance fee in respect of shares which are converted into
another share class prior to the date on which the performance fee would
otherwise have become payable in respect of those shares will crystallise and
become payable on the date of such conversion. The performance fee is accrued on
an ongoing basis and is reflected in the Company’s published NAV. During the
financial year ended 31 December 2025, US$3,072,648 (year ended 31 December
2024:US$14,819,110) was earned by the Manager as performance fees. At 31
December 2025, US$3,067,532 (31 December 2024: US$14,536,362) of the fee
remained outstanding.
The Master Fund may hold investments in other funds managed by the Manager. To
ensure that Shareholders of the Company are not subject to two tiers of fees,
the fees paid to the Manager as outlined above are reduced by the Company’s
share of any fees paid to the Manager by the underlying Master Fund investments,
managed by the Manager.
The notice period for termination of the Management Agreement without cause by
either the Company or the Manager is 12 months.
Administration fee
The Company has appointed Northern Trust International Fund Administration
Services (Guernsey) Limited as its administrator and corporate secretary (the
«Administrator» and «Corporate Secretary») pursuant to an administration
agreement. The Administrator is paid fees based on the NAV of the Company,
payable quarterly in arrears. The fee is at a rate of 0.015% of the average
month-end NAV of the Company, subject to a minimum fee of £67,500 per annum. In
addition to the NAV-based fee, the Administrator is also entitled to an annual
fee of £6,000 (31 December 2024: £6,000) for certain additional administration
services. The Administrator is entitled to be reimbursed for out-of-pocket
expenses incurred in the course of carrying out its duties as Administrator.
During the financial year ended 31 December 2025, US$304,751 (year ended 31
December 2024: US$307,365) was earned by the Administrator as administration
fees. The amounts outstanding are disclosed on the Audited Statement of Assets
and Liabilities.
5. Share capital
Issued and authorised share capital
The Company has the power to issue an unlimited number of ordinary shares with
no-par value and an unlimited number of shares with a par value. Shares may be
divided into at least two classes denominated in Sterling and US Dollars.
Further issues of shares may be made in accordance with the Articles of
Incorporation (the «Articles»). Shares may be issued in differing currency
classes of ordinary redeemable shares. The following tables show the movement in
ordinary shares.
For the year ended 31 December 2025:
Sterling US Dollar
shares shares
Number of ordinary shares
In issue at 1 January 2025 342,211,496 27,478,960
Share conversions 2,583,228 (3,342,525)
Purchase of shares into (29,268,612) (311,894)
Treasury
In issue at 31 December 315,526,112 23,824,541
2025
Number of treasury shares
In issue at 1 January 2025 33,244,410 –
Shares purchased and held
in Treasury during the
year:
On market purchases* 29,268,612 311,894
In issue at 31 December 62,513,022 311,894
2025
Percentage of class 16.54% 1.29%
*On market purchases for the year ended 31 December 2025.
Number of shares purchased Cost
(in currency)
Treasury Cost (US$)
shares
US 311,894 1,298,786 US$1,298,786
Dollar
shares
Sterling 29,268,612 153,113,842 £115,343,977
shares
For the year ended 31 December 2024:
Sterling shares US Dollar shares
Number of
ordinary
shares
In issue at 372,024,149 29,856,472
1 January
2024
Share 1,927,480 (2,377,512)
conversions
Purchase of (31,740,133) –
shares into
treasury
In issue at 342,211,496 27,478,960
31 December
2024
Number of
treasury
shares
In issue at 1,504,277 –
1 January
2024
Shares
purchased
and held in
Treasury
during the
year:
On market 31,740,133 –
purchases*
In issue at 33,244,410 –
31 December
2024
Percentage 8.85% –
of class
*On market purchases in the year ended 31 December 2024.
Number of Cost (in currency)
shares
purchased
Treasury Cost (US$)
shares
US – – –
Dollar
shares
Sterling 31,740,133 148,418,885 £115,985,967
shares
Share classes
In respect of each class of shares, a separate class account has been
established in the books of the Company. An amount equal to the aggregate
proceeds of issue of each share class has been credited to the relevant class
account. Any increase or decrease in the NAV of the Master Fund US Dollar shares
and Master Fund Sterling shares as calculated by the Master Fund is allocated to
the relevant class account in the Company. Each class account is allocated those
costs, prepaid expenses, losses, dividends, profits, gains and income which the
Directors determine in their sole discretion relate to a particular class.
Voting rights of shares
Ordinary shares carry the right to vote at general meetings of the Company and
to receive any dividends attributable to the ordinary shares as a class declared
by the Company and, in a winding-up will be entitled to receive, by way of
capital, any surplus assets of the Company attributable to the ordinary shares
as a class in proportion to their holdings remaining after settlement of any
outstanding liabilities of the Company.
As prescribed in the Company’s Articles, the different classes of ordinary
shares have different values attributable to their votes. The attributed values
have been calculated on the basis of the Weighted Voting Calculation (as
described in the Articles) which takes into account the prevailing exchange
rates on the date of initial issue of ordinary shares. On a vote, a single US
Dollar ordinary share has 0.7606 votes and a single Sterling ordinary share has
1.4710 votes.
Repurchase of ordinary shares
Under the Company’s Articles, Shareholders of a class of shares have the ability
to call for repurchase of that class of shares in certain circumstances. At the
Annual General Meeting held on 16 May 2025, Shareholders approved a Special
Resolution that authorised the maximum number of shares that may be purchased on
-market by the Company until the next Annual General Meeting, being 50,386,530
Sterling shares and 4,067,099 US Dollar shares.
Further issue of shares
As approved by the Shareholders at the Annual General Meeting held on 16 May
2025, the Directors have the power to issue further shares totalling 112,033,560
Sterling shares and 9,043,124 US Dollar shares, respectively. This power is due
to expire fifteen months after the passing of the resolution or on the
conclusion of the next Annual General Meeting of the Company, whichever is
earlier, unless such power was varied, revoked or renewed prior to that Meeting
by a resolution of the Company in general meeting.
Distributions
The Master Fund has not previously paid dividends to its investors. This does
not prevent the Directors of the Company from declaring a dividend at any time
in the future if the Directors consider payment of a dividend to be appropriate
in the circumstances. If the Directors declare a dividend, such dividend will be
paid on a per class basis.
As announced on 15 January 2014, the Company intends to be operated in such a
manner to ensure that its shares are not categorised as non-mainstream pooled
investments. This may mean that the Company may pay dividends in respect of any
income that it receives or is deemed to receive for UK tax purposes so that it
would qualify as an investment trust if it were UK tax-resident.
Further, the Company will first apply any such income in payment of its
management fee and performance fees.
Treasury shares are not entitled to distributions. During the year ended 31
December 2025, the Company purchased 29,268,612 (31 December 2024: 31,740,133)
Sterling shares and 311,894 (31 December 2024: Nil) US Dollar shares to be held
in Treasury.
Share conversion scheme
The Company has implemented a share conversion scheme. The scheme provides
Shareholders with the ability to convert some or all of their ordinary shares in
the Company of one class into ordinary shares of the other class. Shareholders
are able to convert ordinary shares on the last business day of every month.
Each conversion will be based on the NAV (note 7) of the shares of the class to
be converted.
6. Taxation
Overview
The Company is exempt from taxation in Guernsey under the provisions of the
Income Tax (Exempt Bodies) (Guernsey) Ordinance 1989. The adoption of Pillar Two
by Guernsey effective 1 January 2025 does not have an impact on the Company.
Uncertain tax positions
The Company recognises the tax benefits of uncertain tax positions only where
the position is more-likely-than-not (i.e. greater than 50%) to be sustained
assuming examination by a tax authority based on the technical merits of the
position. In evaluating whether a tax position has met the recognition
threshold, the Company must presume that the position will be examined by the
appropriate taxing authority that has full knowledge of all relevant
information. A tax position that meets the more-likely-than-not recognition
threshold is measured to determine the amount of benefit to recognise in the
Company’s Annual Audited Financial Statements. Income tax and related interest
and penalties would be recognised by the Company as tax expenses in the Annual
Audited Statement of Operations if the tax positions were deemed to meet the
more-likely-than-not threshold.
The Company analyses all open tax years for all major taxing jurisdictions. Open
tax years are those that are open for examination by taxing authorities, as
defined by the statute of limitations in each jurisdiction. The Company
identifies its major tax jurisdictions as: Guernsey; the Cayman Islands; and
foreign jurisdictions where the Company makes significant investments. The
Company has no examinations by tax authorities in progress.
The Directors have analysed the Company’s tax positions and have concluded that
no liability for unrecognised tax benefits should be recorded related to
uncertain tax positions. Further, the Directors are not aware of any tax
positions for which it is reasonably possible that the total amounts of
unrecognised tax benefits will significantly change in the remainder of the
year.
7. Publication and calculation of the Company’s Net Asset Value («NAV»)
The NAV of the Company is equal to the value of its total assets less its total
liabilities. The NAV per share of each class will be calculated by dividing the
NAV of the relevant class account by the number of shares of the relevant class
in issue on that day.
The Company publishes the NAV per share for each class of shares as calculated
by the Administrator based in part on information provided by the Master Fund,
monthly in arrears, as at each month-end.
The Company also publishes an estimate of the NAV per share for each class of
shares as calculated by the Administrator based in part on information provided
by the Master Fund, weekly in arrears.
8. Discount management programme
The Company has previously implemented a number of methods in order to seek to
manage any discount to NAV at which the Company’s shares trade. See note 2 for
further details regarding the Company’s annual buyback allowance.
Market purchases
Subject to the authority granted by Shareholders at the 2023, 2024 and 2025
AGMs, market purchases by the Company of the Company’s shares were resumed in
December 2023 and have continued since.
Under the terms of the Management Agreement, the Company may, on one month’s
notice, redeem up to 5 per cent of its shares of each class in the Master Fund,
in order to fund buybacks.
Please see note 5 for details of shares purchased and held in Treasury.
Annual offer of partial return of capital
Under the Company’s Articles, once in every calendar year, the Directors have
discretion to determine that the Company make an offer of a partial return of
capital in respect of such number of shares of the Company in issue as they
determine, provided that the maximum amount distributed does not exceed 100% of
the increase in NAV of the Company in the prior calendar year.
The Directors have discretion to determine the particular class or classes of
shares in respect of which a partial return of capital would be made, the
timetable for that partial return of capital and the price at which the shares
of each relevant class are to be returned.
The Company is entitled to redeem upon three months’ notice, no more than once
per year, a portion of its interest in the Master Fund representing up to 10 per
cent of each class of the Company’s holding of Master Fund shares as at the date
of the relevant redemption request in connection with any such offer of a
partial capital return of capital which is approved by the Directors.
The decision to make a partial return of capital in any particular year and the
amount of the return depend, among other things, on prevailing market
conditions, the ability of the Company to liquidate its investments to fund the
capital return, the success of prior capital returns and applicable legal,
regulatory and tax considerations.
Class closure resolutions
If any class of shares trades at an average discount at or in excess of 8% of
the monthly NAV in any year from 1 January to 31 December, the Company will hold
a class closure vote of the relevant class.
The average discount to NAV for the Sterling shares and US Dollar shares for the
year ended 31 December 2025 were 8.10% and 8.36% respectively and consequently
class closure votes were called for both share classes. Following the Sterling
class closure meeting on 19 February 2026 it was announced that the Sterling
Shareholders had defeated the class closure resolution, with 96.23% of votes
received against closure. It was also announced that the US Dollar class closure
meeting of the same date was inquorate, and the meeting was postponed to 26
February 2026. The US Dollar class closure meeting on 26 February 2026 was
quorate, with 99.91% of votes received against closure.
The arrangements for class closure meetings are described more fully in the
Company’s principal documents which were approved at the EGM on 24 February
2017.
9. Financial highlights
The following tables include selected data for a single ordinary share of each
of the ordinary share classes in issue at 31 December 2025 and other performance
information derived from the Annual Audited Financial Statements.
The per share amounts and ratios shown reflect the income and expenses of the
Company for each class of ordinary share.
31.12.25 31.12.25
Sterling shares US Dollar shares
£ US$
Per share
operating
performance
Net asset 4.35 4.48
value at
beginning
of the year
Income from
investment
operations
Net 0.02 0.02
investment
gain1
Net – 0.01
realised
and
unrealised
gain on
investment
Other 0.04 0.01
capital
items2
Total gain 0.06 0.04
Net asset 4.41 4.52
value, end
of the year
Total gain 1.61% 1.05%
before
performance
fees
Performance (0.23%) (0.22%)
fees
Total gain 1.38% 0.83%
after
performance
fees
Total gain reflects the net gain for an investment made at the beginning of the
year and is calculated as the change in the NAV per ordinary share during the
year ended 31 December 2025. An individual Shareholder’s return may vary from
these gains or losses based on the timing of their purchase or sale of shares.
31.12.25 31.12.25
Sterling US Dollar shares
shares
£’000 US$’000
Supplemental
data
Net asset 1,390,318 107,616
value, end
of the year
Average 1,416,866 113,790
month end
net asset
value for
the year
31.12.25 31.12.25
Sterling US Dollar shares
shares
Ratio to
average net
assets
Operating
expenses
Company expenses3 1.67% 1.59%
Master Fund expenses4 0.97% 0.96%
Master Fund interest 5.27% 5.24%
expenses5
Performance 0.15% 0.18%
fees
8.06% 7.97%
Net 0.62% 0.65%
investment
gain before
performance
fees1
Net 0.47% 0.47%
investment
gain after
performance
fees1
31.12.24 31.12.24
Sterling shares US Dollar shares
£ US$
Per share
operating
performance
Net asset 4.11 4.27
value at
beginning
of the year
Income from
investment
operations
Net (0.03) (0.03)
investment
loss1
Net 0.23 0.24
realised
and
unrealised
gain on
investment
Other 0.04 –
capital
items2
Total gain 0.24 0.21
Net asset 4.35 4.48
value, end
of the year
Total gain 6.59% 5.86%
before
performance
fees
Performance (0.73%) (0.94%)
fees
Total gain 5.86% 4.92%
after
performance
fees
Total gain reflects the net gain for an investment made at the beginning of the
year and is calculated as the change in the NAV per ordinary share during the
year ended 31 December 2024. An individual Shareholder’s return may vary from
these gains or losses based on the timing of their purchase or sale of shares.
31.12.24 31.12.24
Sterling US Dollar shares
shares
£’000 US$’000
Supplemental
data
Net asset 1,487,501 123,111
value, end
of the year
Average 1,463,916 121,860
month end
net asset
value for
the year
31.12.24 31.12.24
Sterling US Dollar shares
shares
Ratio to
average net
assets
Operating
expenses
Company expenses3 1.59% 1.57%
Master Fund expenses4 1.07% 1.07%
Master Fund interest 3.58% 3.55%
expenses5
Performance 0.74% 0.87%
fees
6.98% 7.06%
Net 0.10% 0.12%
investment
gain before
performance
fees1
Net (0.64%) (0.75%)
investment
loss after
performance
fees1
Notes
1The net investment gain and loss figures disclosed above do not include net
realised and unrealised gains/losses on investments allocated from the Master
Fund.
2Included in other capital items are the discounts and premiums on conversions
between share classes and on the sale of treasury shares as well as any partial
capital return effected in the relevant year as compared to the NAV per share at
the beginning of the year.
3Company expenses are as disclosed in the Audited Statement of Operations for
the year excluding the performance fee and foreign exchange gains/losses.
4 Master Fund expenses are the operating expenses of the Master Fund excluding
the interest and dividend expenses of the Master Fund.
5 Master Fund interest expenses include interest and dividend expenses on
investments sold short.
10. Related-party transactions
Parties are considered to be related if one party has the ability to control the
other party or exercise significant influence over the party in making financial
or operational decisions.
The management fees and performance fees are disclosed in note 4. Details of the
amended Management Agreement can be found in note 2.
The Remuneration and Nomination Committee appointed external providers, Trust
Associates, to carry out a review of the Directors’ fees, and their report was
considered at the most recent meeting, held on 9 December 2025. The Committee
considered the recommendations from Trust Associates to take accounts of the
increased workload for non-executive directors of investment companies,
inflation in the market for such non-executive directors since 1 July 2022 and
benchmarking against peer companies. It was concluded that from 1 January 2026,
the fees would be as set out in the table below.
Fee per annum
Role £
Board Chair 110,000
Audit Committee Chair 75,000
Management Engagement Committee Chair 64,000
Remuneration and Nomination Committee Chair 64,000
Senior Independent Director 66,000
All other Directors 59,000
The fees payable by the Company in respect of each of the Directors who served
during the year ended 31 December 2025, and the year ended 31 December 2024 were
as follows:
Year Year
ended ended
31.12.25 31.12.24
£ £
Richard Horlick 99,000 90,000
Caroline Chan 58,000 55,000
Julia Chapman 58,000 55,000
Bronwyn Curtis 59,000 55,000
John Le Poidevin 69,000 65,000
John Whittle (appointed 1 July 2025) 26,500 –
Total 369,500 320,000
The annual aggregate limit of fees payable to Directors is £800,000 per annum.
11. Subsequent events
On 5 January 2026, the Company completed the share conversion for the 30
November 2025 share conversion date, issuing 7,682 US Dollar shares and
cancelling 9,911 GBP Shares.
On 3 February 2026, the Company completed the share conversion for the 31
December 2025 share conversion date, issuing 353,354 US Dollar shares and
cancelling 464,473 GBP Shares.
Subsequent to the year-end the Company made the following purchases of ordinary
shares to be held in Treasury:
Sterling Class shares
Number of Highest Price Lowest Price
Month shares bought point point
£ £
January 2026 3,735,757 4.15 4.00
February 2026 5,003,654 4.32 4.16
March 2026* 278,613 4.39 4.23
Total 9,018,024
*Until 20 March 2026
USD Class shares
Number of Highest Price Lowest Price
Month shares bought point point
£ £
January 2026 88,533 4.34 4.12
February 2026 49,429 4.42 4.34
March 2026* 4,661 4.48 4.48
Total 142,623
*Until 20 March 2026
The Directors have evaluated subsequent events up to 30 March 2026, which is the
date that the Annual Audited Financial Statements were approved and available to
be issued and have concluded there are no further items that require disclosure
or adjustment to the Annual Audited Financial Statements.
Historic Performance Summary
As at 31 December 2025
31.12.25 31.12.24 31.12.23
31.12.22 31.12.21
US$’000 US$’000 US$’000
US$’000 US$’000
Net increase in net assets
resulting from operations 151,139 58,231 66,494
112,078 12,010
Total assets 1,988,705 2,002,363
2,079,009 1,707,130 1,307,490
Total liabilities (7,636) (18,020) (4,478)
(66,682) (9,762)
Net assets 1,981,069 1,984,343
2,074,531 1,640,448 1,297,728
Number of shares in issue
Sterling shares 315,526,112 342,211,496
372,024,149 30,156,454* 25,864,663*
US Dollar shares 23,824,541 27,478,960
29,856,472 2,858,135* 2,689,547*
Net asset value per share
Sterling shares £4.41 £4.35 £4.11
£41.81* £34.30*
US Dollar shares US$4.52 US$4.48 US$4.27
US$43.28* US$35.71*
* The Number of Shares In Issue and Net Asset Value Per Share prior to 31
December 2023 are not adjusted by a factor of 10 to reflect the 10 for 1 share
sub-division approved at the EGM held on 6 February 2023.
Affirmation of the Commodity Pool Operator
As at 31 December 2025
To the best of my knowledge and belief, the information detailed in this Annual
Report and these Annual Audited Financial Statements is accurate and complete.
Name: Jonathan Hughes
Title: Director and Authorised Signatory
Brevan Howard Capital Management Limited as general partner of Brevan Howard
Capital Management LP, the manager and commodity pool operator of BH Macro
Limited
30 March 2026
Glossary of Terms and Alternative Performance Measures
Alternative Performance Measures («APMs»)
We assess our performance using a variety of measures that are not specifically
defined under US GAAP and therefore termed APMs. The APMs that we use may not be
directly comparable with those used by other companies.
Average Discount to NAV
The average discount to NAV of the whole year is calculated for each share class
by using the following formula:
(A-B)
B
Where:
· `A’ is the average closing market price of a share of the relevant share
class as derived from the trading price on the London Stock Exchange, calculated
as the sum of all the closing market prices per share of that class as at each
London Stock Exchange trading day during a calendar year, divided by the number
of such trading days in such year; and
· `B’ is the average NAV per share of the shares of the relevant share class
taken over the 12 month-end NAV Calculation Dates in the year ended 31 December
2025 calculated as the sum of the final NAV of the share class as at each month
-end NAV Calculation Date during the year ended 31 December 2025, divided by 12.
Discount
If the share price of an investment is lower than the NAV per share, the shares
are said to be trading at a discount. The size of the discount is calculated by
subtracting the share price from the NAV per share of the relevant share class
and is usually expressed as a percentage of the NAV per share. If the share
price is higher than the NAV per share, the shares are said to be trading at a
premium. The Board monitors the level of discount or premium and consideration
is given to ways in which share price performance may be enhanced, including the
effectiveness of marketing and share buybacks, where appropriate. The discount
is shown below.
Sterling Shares US Dollar Shares
31.12.25 31.12.24 31.12.25 31.12.24
Share Price at Year End (C) £3.99 £4.06 US$4.24 US$4.17
NAV per Share (D) £4.41 £4.35 US$4.52 US$4.48
Discount to NAV (C-D)/D (9.52%) (6.67%) (6.19%) (6.92%)
Gain/(Loss) Per Share
Gain per share is calculated using the net loss/gain on ordinary activities
after finance costs and taxation (year ended 31 December 2025: a gain of
£7,022,125 and a gain of US$613,157; year ended 31 December 2024: a gain of
£68,166,209 and a gain of US$5,680,548), divided by the weighted average number
of shares in issue (year ended 31 December 2025: 330,852,980 Sterling shares and
26,107,953 US Dollar shares; year ended 31 December 2024: 380,616,423 Sterling
shares and 28,572,373 US Dollar shares).
Year ended Year ended
31.12.25 31.12.24
Per share ‘000 Per share ‘000
Net 2.12p £7,022 17.91p £68,166
total
gain for
Sterling
shares
Net 2.35c US$613 19.88c US$5,681
total
gain for
US
Dollar
shares
Ongoing Charges
The Ongoing Charges are calculated using the AIC Ongoing Charges methodology,
which was last updated in April 2022 and is available on the AIC website
(theaic.co.uk). The Ongoing Charges represent the Company’s management fee and
all other operating expenses, excluding finance costs, performance fees, share
issue or buyback costs and non-recurring legal and professional fees and are
expressed as a percentage of the average of the daily net assets during the
year. The Board continues to be conscious of expenses and works hard to maintain
a sensible balance between good quality service and cost. The Ongoing Charges
calculation is shown below:
Sterling
Shares US Dollar Shares
Year ended Year
ended Year ended Year ended
31.12.25
31.12.24 31.12.25 31.12.24
Average NAV for the year (A) £1,416,866,238 £1,463,916,101
US$113,789,609 US$121,859,568
Management Fee £21,268,394
£22,022,232 US$1,709,780 US$1,833,616
Other Company expenses £2,336,220 £1,190,495
US$97,110 US$79,940
Total Company Expenses £23,604,614 £23,212,727
US$1,806,890 US$1,913,556
Expenses allocated from the Master Fund £9,146,725 £9,161,315
US$722,975 US$758,658
Performance Fee £2,184,478
£10,771,912 US$201,121 US$1,058,004
Total Expenses (B) £34,935,817
£43,145,954 US$2,730,986 US$3,730,218
Ongoing Charges (B/A) 2.47% 2.95%
2.40% 3.06%
The NAV
The NAV is the net assets of the Company attributable to Shareholders, that is,
total assets less total liabilities, expressed as an amount per individual share
of the relevant class of shares.
Company Information
Directors
Richard Horlick (Chair)
Caroline Chan
Julia Chapman
Bronwyn Curtis
John Le Poidevin
John Whittle (appointed 1 July 2025)
(All Directors are non-executive and independent for the purpose of UKLR
11.2.12)
Registered Office
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey
Channel Islands GY1 3QL
Manager
Brevan Howard Capital Management LP
6th Floor
37 Esplanade
St Helier
Jersey
Channel Islands JE2 3QA
Administrator and Corporate Secretary
Northern Trust International Fund
Administration Services (Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey
Channel Islands GY1 3QL
Independent Auditor
Ernst & Young LLP (appointed 16 May 2025)
Royal Chambers
St. Julians Avenue
St. Peter Port
Guernsey
Channel Islands GY1 4AF
KPMG Channel Islands Limited (retired 16 May 2025)
Glategny Court
Glategny Esplanade
St Peter Port
Guernsey
Channel Islands GY1 1WR
Registrar and CREST Service Provider
Computershare Investor Services (Guernsey) Limited
1st Floor
Tudor House
Le Bordage
St Peter Port
Guernsey GY1 1DB
Legal Advisor (Guernsey Law)
Carey Olsen
Carey House
Les Banques
St Peter Port
Guernsey
Channel Islands GY1 4BZ
Legal Advisor (UK Law)
Hogan Lovells International LLP
Atlantic House
Holborn Viaduct
London EC1A 2FG
Corporate Broker
JPMorgan Cazenove
25 Bank Street
Canary Wharf
London E14 5JP
Tax Adviser
Deloitte LLP
PO Box 137
Regency Court
Glategny Esplanade
St Peter Port
Guernsey
Channel Islands GY1 3HW
For the latest information
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