Brevan Howard demands fee increase on BH Macro - but has it shot itself in the foot?

Wants to return to 2/20 fee structure

David Brenchley
Brevan Howard wants the fees payable to BH Macro to rise

Brevan Howard wants the fees payable to BH Macro to rise

Brevan Howard Capital Management risks "shooting itself in the foot" and "effectively serving itself notice" by demanding too high a rise in the management fees paid by BH Macro investment trust investors, alongside the "egregious" imposition of a fee on share redemptions and capital returns.

BH Macro, alongside its sister fund BH Global, published a letter from investment manager Brevan Howard, who said they wanted the fee structure reset to 2%/20%, reversing concessions previously agreed in 2016 and 2017. Brevan Howard said it wants the fixed fee paid by the two investment companies to double to 2%, alongside an extension of the notice period the boards would have to give the manager if dispensing with its services to 12 months, from three months currently. From evolution to revolution: Investment trust sector urged to grow in order to 'stay relevant' The firm also wa...

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