Hiper Global Ltd. - Interim / Quarterly Report 2012

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BH Global Limited

Interim Unaudited Financial Statements 2012

INTERIM UNAUDITED FINANCIAL STATEMENTS

30 June 2012

Chairman’s Statement

In the first half of 2012, BH Global Limited (the “Company”) demonstrated the value of portfolio diversification. Overall, the net asset value (“NAV”) of the Company was down 0.47% (GBP shares), but this disguised the strong performance of a number of the underlying funds in the portfolio.

The Company invests all of its assets (net of short-term working capital) in the ordinary shares of Brevan Howard Global Opportunities Master Fund Limited (“BHGO”). Brevan Howard Master Fund Limited (“BHMF”) currently accounts for just under half of BHGO’s portfolio. BHMF has historically been the strongest contributor to BHGO’s portfolio since the Company’s IPO in 2008, but the first half of 2012 proved a difficult trading environment, with BHMF (USD shares) declining by 3.63% over the period. However, this decline was largely offset by the strong performance of other underlying funds in BHGO’s portfolio, in particular by Brevan Howard Emerging Markets Strategies Master Fund Limited (“BHEMS”) and Brevan Howard Credit Catalysts Master Fund Limited (“BHCC”), which returned 9.23% and 7.13% respectively over the period.

The positive contribution to performance made by the credit and emerging markets components of BHGO’s portfolio highlights the complementary nature of the Company’s underlying fund exposures and the value of having a broad-based exposure to Brevan Howard’s trading strategies. The investment policy of BHGO therefore remains unchanged – to invest in a variety of funds managed by Brevan Howard in order to provide exposure to the range of strategies, asset classes and geographies that fall within Brevan Howard’s investment activities.

In the period from 30 June to early August, Brevan Howard Master Fund recovered a substantial part of the losses in the first six months of the year, taking the NAV for the Company for the year to date from a small loss to a small gain.

Throughout the reporting period, trading conditions proved extremely difficult due to sharp changes in sentiment – markets showed no clear trend but alternated between being “risk-on” and “risk-off”, which in turn created a highly volatile trading environment. Many of the changes in sentiment were not driven by economic factors, but by changing assessments of the behaviour of policymakers, governments and regulators or by political events. For example: Would the latest plan for tackling the problems of the euro area carry credibility? Would the Greek election result in a pro-euro or anti-euro government? These swings in sentiment affected BHMF on a number of occasions. However, Brevan Howard’s disciplined risk management culture limited the downside on losing trades.

In the first half of 2012, Brevan Howard Capital Management LP (the “Manager”) made a number of modest adjustments to BHGO’s underlying fund allocations. These included a reduction in the allocations to BHMF and to BHEMS and a new allocation of approximately 4% to Brevan Howard Investment Fund – Emerging Markets Local Fixed Income Fund, which further diversifies the Company’s emerging markets exposure.

Over the reporting period, the price of the Company’s shares fell by approximately 3%, although on very low trading volumes. As a result, the discounts of each of the three share classes widened from approximately 6% to 8-9%.

In February, the Company announced a return of capital equal to 100% of the increase in NAV of the previous calendar year, which averaged approximately 5% across the three share classes. The return was offered at a discount to the prevailing NAV of 3% at the time the capital return was made. Given the widening of the discount by June when the capital return offer closed, it is not surprising that allocations were taken up in full. The amount returned to investors totalled approximately US$45 million1.There were no other purchases by the Company of its own shares during the reporting period.

1 Calculated at 31 May 2012 exchange rates.

The Board continues to believe that the multi-strategy structure of the Company offers a number of advantages. It provides some of the features of a fund of funds, allowing investors access to a diverse range of strategies, whether by geography, asset class or trading style. But unlike many fund of funds, all the investments are managed by a single manager, Brevan Howard, ensuring a consistent and rigorous approach to both asset allocation and risk management. There is also no additional layer of performance fees.

The Company will continue to seek long-term appreciation combined with low volatility and is confident that the Manager will be able to deliver this.

Lord Turnbull

Chairman

22 August 2012

Manager’s Report

Brevan Howard Capital Management LP is the Manager of the Company and of BHGO.

Performance Summary

The Net Asset Value of the Company ended the first half of 2012 marginally down. The month-by-month NAV performance of each currency class of the Company since it commenced operations in 2008 is set out below:

USD

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

YTD

2008

–

1.16*

0.10

0.05

(3.89)

1.13

2.74

0.38

1.55

2009

3.35

1.86

1.16

1.06

2.79

(0.21)

1.07

0.27

1.49

0.54

0.11

0.04

14.31

2010

0.32

(0.85)

(0.35)

0.53

(0.06)

0.60

(0.79)

0.80

1.23

0.39

(0.21)

(0.06)

1.54

2011

0.09

0.42

0.34

1.20

0.19

(0.56)

1.61

3.51

(1.29)

(0.14)

0.19

(0.88)

4.69

2012

1.22

1.02

(0.54)

(0.10)

(0.65)

(1.53)

(0.61)

EUR

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

YTD

2008

–

1.28*

0.25

0.29

(4.34)

1.15

3.01

0.44

1.93

2009

3.57

1.94

1.13

1.05

2.54

(0.21)

1.11

0.27

1.50

0.50

0.08

14.36

2010

0.37

(0.90)

(0.35)

0.58

(0.02)

0.69

(0.81)

0.86

1.06

0.36

(0.14)

0.04

1.73

2011

0.06

0.43

0.35

1.30

0.27

(0.63)

1.78

3.77

(1.44)

(0.14)

0.19

(0.91)

5.04

2012

1.21

1.01

(0.56)

(0.12)

(0.61)

(1.45)

(0.53)

GBP

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

YTD

2008

–

1.40*

0.33

0.40

(4.17)

1.25

3.27

0.41

2.76

2009

3.52

1.94

1.03

0.68

2.85

(0.28)

1.05

0.31

1.51

0.58

0.12

0.08

14.15

2010

0.35

(0.93)

(0.32)

0.58

(0.04)

0.62

(0.81)

0.84

1.17

0.37

(0.20)

(0.03)

1.61

2011

0.10

0.41

0.38

1.13

0.04

(0.59)

1.69

3.67

(1.41)

(0.15)

0.21

(0.84)

4.65

2012

1.23

1.05

(0.51)

(0.08)

(0.62)

(1.51)

(0.47)

Source: The Company’s NAV and NAV per Share data is provided by the Company’s administrator, Northern Trust International Fund Administration Services (Guernsey) Limited. Monthly NAV data is unaudited and net of all investment management fees and all other fees and expenses payable by the Company. Shares in the Company do not necessarily trade at a price equal to the prevailing NAV per Share.

Performance is calculated from a base NAV per Share of 10.0 in each currency. The opening NAV in May 2008 was 9.9 (after deduction of the IPO costs borne by the Company).

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS

BHGO – Allocations and Investment Performance

The allocations of BHGO to each of its underlying fund investments changed as follows during the first half of 2012:

Allocation (% NAV)

Investment

31.12.11

02.07.12*

Brevan Howard Master Fund Limited (“BHMF”)

50.3

47.8

Brevan Howard Asia Master Fund Limited (“BHA”)

9.9

8.7

Brevan Howard Emerging Markets Strategies Master Fund Limited (“BHEMS”)

11.5

9.3

Brevan Howard Credit Catalysts Master Fund Limited (“BHCC”)

11.3

12.5

Brevan Howard Commodities Strategies Master Fund Limited (“BHCS”)

4.8

5.0

Brevan Howard Systematic Trading Master Fund Limited (“BHST”)

11.6

12.0

Brevan Howard Investment Fund – Emerging Markets Local Fixed Income Fund (“BHEML”)

0.0

4.4

Cash/Other

0.6

0.3

Source: Brevan Howard.

Allocations are subject to change.

Inclusive of subscriptions/redemptions in underlying funds for 2 July 2012.

The underlying funds performed as follows during the first half of 2012:

YTD Performance

Investment

to 30.06.2012 (%)*

Brevan Howard Master Fund Limited Class Y (USD)

(3.6)

Brevan Howard Asia Master Fund Limited Class X (USD)

(0.3)

Brevan Howard Emerging Markets Strategies Master Fund Limited Class X (USD)

9.2

Brevan Howard Credit Catalysts Master Fund Limited Class Y (USD)

7.1

Brevan Howard Commodities Strategies Master Fund Limited Class X (USD)

3.8

Brevan Howard Systematic Trading Master Fund Limited Class B (USD)

(1.8)

Brevan Howard Investment Fund – Emerging Markets Local Fixed Income Fund Class A (USD)

2.2

USD currency class of each Underlying Fund; the Company also invests in the EUR and GBP of the Underlying Funds.

Source: Performance data for the Underlying Funds is provided by the administrator, International Fund Services (Ireland) Limited (“IFS”). Performance data is net of all investment management fees and all other fees and expenses payable.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS

Performance Review

During the first half of 2012, the NAV of the Company depreciated by 0.47% in the GBP class, 0.61% in the USD class and 0.53% in the EUR class.

The Company started the year strongly, with the NAV appreciating by more than 2.2% by the end February in each of the three share classes. All of the underlying funds apart from BHA made a positive contribution to performance during the first two months of the year, including BHGO’s new allocation (effected in January) to BHEML. A particularly strong contribution to BHGO’s performance in January and February came from BHEMS, returning almost 10% during these two months as a result of its long exposure to emerging market FX, credit and equities.

In the period from March to June, the performance of the underlying funds was mixed. BHCC returned over 5% during this period, with strong gains in both its corporate and mortgage strategies. However, these gains were offset by losses incurred by other underlying funds in the portfolio, in particular by BHMF which suffered losses (primarily in June) from directional and volatility positions in interest rate trading. BHST also suffered losses in its FX trend-following strategy and, to a lesser extent, in bonds and equity indices.

Although the Company’s NAV ended the half-year marginally down, the combined performance of the underlying funds demonstrates the diversification benefits of the Company having a wide exposure to the range of strategies, asset classes and geographical locations of Brevan Howard’s investment activities. The macro trading losses suffered during the first half of 2012 were largely offset by gains made in emerging markets and credit-focused strategies, and the Company is well placed to benefit from improved trading performance in the second half of 2012. Subsequent to the reporting period, trading performance has been strong across the majority of the underlying funds, and as at 31 July 2012 the Company’s GBP NAV is up by an estimated 0.86% for the year.

Commentary and Outlook

2012 started off on a relatively positive tone for markets, compared to the very negative and unstable backdrop seen in the second half of 2011. As we entered 2012, the ECB had taken the significant action of offering 3-year Long Term Refinancing Operations (“LTROs”) to banks, significantly reducing the risk of an extreme market shock. Furthermore, many forecasters were optimistic that economies outside of Europe would generate moderate but positive growth. As such, the first couple months of the year witnessed a market rally and a reduction in volatility levels. However, as economic data began to indicate further downshifting in the pace of economic activity, particularly in the US which had been one of the stronger economies on a relative basis, markets became increasingly unstable. Concern over economic fundamentals was further compounded by political uncertainty associated with the Greek elections, eurozone summit and the bailout of Spanish banks. These economic and political concerns translated into an increase in volatility and a market sell-off during April and May – particularly in emerging market assets which suffered their worst losses since September 2011. In June 2012, the outcomes of the Greek elections, eurozone summit and Spanish bank bailout were generally more positive than expected, which triggered a market rally.

It appears that the global economy has found itself in another “soft patch”, similar to that experienced in both 2010 and 2011. What remains uncertain is how long this “soft patch” will last and whether it will be followed by a continuation of the modest but positive trend growth that the global economy has generally seen over the past few years. The outlook for Europe remains uncertain, and global asset markets continue to be highly correlated with any flare-up of risk in Europe.

Both developed and emerging markets continue to face a number of cross-currents, both fundamental and political in nature. The Manager remains confident in the ability of the underlying funds to profit from both tactical and structural macro trading activity in this environment.

Brevan Howard wishes to thank shareholders once again for their continued support.

Gunther Thumann

Brevan Howard Capital Management, LP,

acting by its sole general partner,

Brevan Howard Capital Management Limited

22 August 2012

Statement of Directors’ Responsibility in Respect of the Interim Unaudited Financial Statements

We confirm to the best of our knowledge that:

• these Interim Unaudited Financial Statements have been prepared in conformity with Accounting Principles Generally Accepted in the United States of America; and

• these Interim Unaudited Financial Statements include information detailed in the Chairman’s Statement, the Manager’s Report and the notes to the Interim Unaudited Financial Statements, which provides a fair view of the information required by:-

(a) DTR 4.2.7 of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on these Interim Unaudited Financial Statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b) DTR 4.2.8 of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last Annual Audited Financial Statements that could materially affect the financial position or performance of the Company.

Going concern

After making enquiries and given the nature of the Company and its investment, the Directors are satisfied that it is appropriate to continue to adopt the going concern basis in preparing these Financial Statements, and, after due consideration, the Directors consider that the Company is able to continue for the foreseeable future.

Signed on behalf of the Board by:

Lord Turnbull

Chairman

John Hallam

Director

22 August 2012

Independent Review Report to BH Global Limited

We have been engaged by the Company to review the Interim Unaudited Financial Statements included in the Interim Report for the six month period to 30 June 2012 which comprises the Unaudited Statement of Assets and Liabilities, the Unaudited Statement of Operations, the Unaudited Statement of Changes in Net Assets, the Unaudited Statement of Cash Flows and the related explanatory notes. We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the Interim Unaudited Financial Statements.

This Report is made solely to the Company in accordance with the terms of our engagement letter dated 4 July 2012 to assist the Company in meeting the requirements of the Disclosure and Transparency Rules (“the DTR”) of the UK’s Financial Services Authority (“the UK FSA”). Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this 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 for our review work, for this Report, or for the conclusions we have reached.

Directors’ responsibilities

The Interim Report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Interim Report in accordance with the DTR of the UK FSA.

As disclosed in note 3, the Annual Audited Financial Statements of the Company are prepared in conformity with accounting principles generally accepted in the United States of America and applicable law. The Interim Unaudited Financial Statements have been prepared following the same basis as the most recent Annual Audited Financial Statements.

Our responsibility

Our responsibility is to express to the Company a conclusion on the Interim Unaudited Financial Statements included in the Interim Report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the Interim Unaudited Financial Statements included in the Interim Report for the six month period to 30 June 2012 are not prepared, in all material respects, in conformity with accounting principles generally accepted in the United States of America and the DTR of the UK FSA.

Deborah J Smith

For and on behalf of KPMG Channel Islands Limited

Chartered Accountants

22 August 2012

Unaudited Statement of Assets and Liabilities

As at 30 June 2012

30.06.12

31.12.11

30.06.11

(Unaudited)

(Audited)

(Unaudited)

US$’000

Assets

Investment in BHGO (cost 30 June 2012: US$864,011,754;
31 December 2011: US$911,527,827; 30 June 2011: US$890,909,427)

962,421

998,086

982,138

Amounts due from the Master Fund

45,164

–

Other debtors

299

131

Cash and bank balances denominated in US Dollars

219

594

8,229

Cash and bank balances denominated in Euro

109

140

2,453

Cash and bank balances denominated in Sterling

1,221

2,042

19,926

Total assets

1,009,433

1,000,993

1,012,780

Liabilities

Redemptions payable (note 6)

44,967

–

Management fees payable (note 4)

395

425

416

Accrued expenses and other liabilities

176

201

Directors’ fees payable

115

113

118

Administration fees payable (note 4)

Total liabilities

45,712

628

764

Net assets

963,721

1,000,365

1,012,016

Number of shares in issue (note 6)

US Dollar shares

14,642,562

15,185,614

17,075,987

Euro shares

2,616,585

2,919,762

3,049,573

Sterling shares

38,155,265

39,910,912

38,834,018

Net asset value per share (notes 8 and 11)

US Dollar shares

US$12.27

US$12.34

US$11.99

Euro shares

€12.39

€12.46

€12.07

Sterling shares

£12.41

£12.47

£12.09

See accompanying notes to the Interim Unaudited Financial Statements.

Signed on behalf of the Board by:

Lord Turnbull

Chairman

John Hallam

Director

22 August 2012

Unaudited Statement of Operations

For the period from 1 January 2012 to 30 June 2012

01.01.12

01.01.11

to 30.06.12

to 31.12.11

to 30.06.11

(Unaudited)

(Audited)

(Unaudited)

US$’000

Net investment loss allocated from BHGO

Interest

Expenses

(104)

(128)

(103)

Net investment loss allocated from BHGO

(101)

(108)

(92)

Company income

Interest income

–

Foreign exchange gains (note 3)

14,100

–

33,277

Total Company income

14,100

33,277

Company expenses

Management fees (note 4)

2,571

5,146

2,532

Other expenses

766

945

404

Directors’ fees (note 5)

232

463

230

Administration fees (note 4)

178

355

174

Foreign exchange losses (note 3)

–

5,541

–

Total Company expenses

3,747

12,450

3,340

Net investment gain/(loss)

10,252

(12,557)

29,845

Net realised and unrealised losses and gains on investments allocated from BHGO

Net realised gain on investments

8,320

21,210

15,217

Net unrealised gain on investments

1,948

18,679

34,036

Net realised and unrealised foreign exchange (loss)/gain

on hedging

(33)

(19)

(54)

on capital (note 3)

(12,164)

11,834

(31,768)

Net realised and unrealised losses and gains on investments allocated from BHGO

(1,929)

51,704

17,431

Net increase in net assets resulting from operations

8,323

39,147

47,276

See accompanying notes to the Interim Unaudited Financial Statements.

Unaudited Statement of Changes in Net Assets

For the period from 1 January 2012 to 30 June 2012

01.01.12

01.01.11

to 30.06.12

to 31.12.11

to 30.06.11

(Unaudited)

(Audited)

(Unaudited)

US$’000

Net increase in net assets resulting from operations

Net investment gain/(loss)

10,252

(12,557)

29,845

Net realised gain on investments allocated from BHGO

8,320

21,210

15,217

Net unrealised gain on investments allocated from BHGO

1,948

18,679

34,036

Net realised and unrealised foreign exchange (loss)/gain allocated from BHGO

(12,197)

11,815

(31,822)

8,323

39,147

47,276

Share capital transactions

Purchase of own shares

US Dollar shares

–

(5,389)

Euro shares

–

(2,294)

(1,569)

Sterling shares

–

(9,264)

(6,467)

Partial capital return

US Dollar shares

(8,402)

–

Euro shares

(2,255)

–

Sterling shares

(34,310)

–

(44,967)

(16,947)

(13,425)

Net (decrease)/increase in net assets

(36,644)

22,200

33,851

Net assets at the beginning of the period/year

1,000,365

978,165

Net assets at the end of the period/year

963,721

1,000,365

1,012,016

See accompanying notes to the Interim Unaudited Financial Statements.

Unaudited Statement of Cash Flows

For the period from 1 January 2012 to 30 June 2012

01.01.12

01.01.11

to 30.06.12

to 31.12.11

to 30.06.11

(Unaudited)

(Audited)

(Unaudited)

US$’000

Cash flows from operating activities

Net increase in net assets resulting from operations

8,323

39,147

47,276

Adjustments to reconcile net income/(expense) to net cash (used in)/provided by operating activities:

Net investment loss allocated from BHGO

101

108

Net realised gain on investments allocated from BHGO

(8,320)

(21,210)

(15,217)

Net unrealised gain on investments allocated from BHGO

(1,948)

(18,679)

(34,036)

Net realised and unrealised foreign exchange loss/(gain) allocated from BHGO

12,197

(11,815)

31,822

Purchase of investment in BHGO

–

(20,170)

–

Proceeds from sale of investment in BHGO

2,571

33,717

34,056

Foreign exchange (gains)/losses

(14,100)

5,541

(33,277)

(Increase)/decrease in other debtors

(168)

(88)

(Decrease)/increase in management fees payable

(30)

–

Increase/(decrease) in accrued expenses and other liabilities

116

(215)

(74)

Increase in Directors’ fees payable

Increase/(decrease) in administration fees payable

(57)

(58)

Net cash (used in)/provided by operating activities

(1,227)

6,294

30,604

Cash flows from financing activities

Purchase of own shares

–

(16,947)

(13,425)

Net cash used in financing activities

–

(16,947)

(13,425)

Change in cash

(1,227)

(10,653)

17,179

Cash, beginning of the period/year

2,776

13,429

Cash, end of the period/year

1,549

2,776

30,608

Cash, end of the period/year

Cash and bank balances denominated in US Dollars

219

594

8,229

Cash and bank balances denominated in Euro

109

140

2,453

Cash and bank balances denominated in Sterling

1,221

2,042

19,926

1,549

2,776

30,608

See accompanying notes to the Interim Unaudited Financial Statements.

Notes to the Interim Unaudited Financial Statements

For the period from 1 January 2012 to 30 June 2012

The Company

BH Global Limited (the “Company”) is a limited liability closed-ended investment company incorporated in Guernsey on 25 February 2008 for an unlimited period, with registration number 48555.

The Company was admitted to a Primary Listing on the Official List of the London Stock Exchange on 29 May 2008. As a result of changes to the UK Listing Regime, the Company’s Primary Listing became a Premium Listing with effect from 6 April 2010.

As of 20 October 2008 the Company obtained a Secondary Listing on the Bermuda Stock Exchange and with effect from 11 November 2008, the US Dollar shares of the Company were admitted to a Secondary Listing on NASDAQ Dubai.

The Company offers multiple classes of ordinary shares, which differ in terms of currency of issue. To date, ordinary shares have been issued in US Dollar, Euro and Sterling.

Organisation

The Company’s investment objective is to seek to generate consistent long-term capital appreciation through an investment policy of investing all of its assets (net of those expenses of the initial public offering borne by the Company and funds required for its short-term working capital requirements) in BHGO.

The Company is organised as a feeder fund and invests substantially all of its investable assets in the ordinary US Dollar, Euro and Sterling denominated Class A shares issued by BHGO.

BHGO is an open-ended investment company incorporated with limited liability in the Cayman Islands on 3 March 2008 which, as at the date of these Interim Unaudited Financial Statements, invests in Brevan Howard Master Fund Limited, Brevan Howard Emerging Markets Strategies Master Fund Limited, Brevan Howard Asia Master Fund Limited, Brevan Howard Systematic Trading Master Fund Limited, Brevan Howard Credit Catalysts Master Fund Limited, Brevan Howard Commodities Strategies Master Fund Limited and Brevan Howard Investment Fund – Emerging Markets Local Fixed Income Fund. As at 30 June 2012, BHGO’s investments represented 1.75%, 3.43%, 4.10%, 11.92%, 4.38%, 8.58% and 3.25% respectively of the investee funds’ net asset value.

These investment funds may invest in a wide range of geographical regions, sectors and instruments. Such instruments may include, but are not limited to, debt securities and obligations (which may be below investment grade or unrated), bank loans, listed and unlisted equities, other collective investment schemes (which may be open ended or closed ended, listed or unlisted, and which may employ leverage), currencies, commodities, futures, options, warrants, swaps, other derivative instruments and any other type of instrument or security. These funds have the ability to take short positions across the majority of these instruments. Subject to the investment restrictions disclosed in the Prospectus and subsequent Directors’ resolutions, the allocation of assets of BHGO among the Brevan Howard Underlying Funds in which it is permitted to invest is at the discretion of the Manager.

At the date of these Interim Unaudited Financial Statements, the Company is the only Feeder Fund investing into BHGO.

The Company’s Interim Unaudited Financial Statements should be read alongside the Interim Unaudited Financial Statements of BHGO which can be found on the Company’s website, www.bhglobal.com.

The Manager

Brevan Howard Capital Management LP (the “Manager”) is the Manager of the Company. The Manager is a Jersey limited partnership, the sole 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 BHGO and the Brevan Howard Underlying Funds.

Significant accounting policies

The Annual Audited Financial Statements which give a true and fair view, are prepared in conformity with accounting principles generally accepted in the United States of America and The Companies (Guernsey) Law, 2008. The accompanying Interim Unaudited Financial Statements, have been prepared following the same accounting policies and methods of computation as the most recent Annual Audited Financial Statements. The functional and reporting currency of the Company is US Dollars.

The following are significant accounting policies adopted by the Company:

Valuation of investments

The Company records its investment in the Class A shares of BHGO at fair value. At 30 June 2012, 31 December 2011 and at 30 June 2011, the Company’s US Dollar, Euro and Sterling capital account represents 100%, 100% and 100% respectively of BHGO’s capital.

Fair value measurement

Accounting Standards Codification (“ASC”) Topic 820 defines fair value as the price that the Company would receive upon selling a security in an orderly transaction to an independent buyer in the principal or most advantageous market of the security.

ASC 820 establishes a three-level hierarchy to maximise the use of observable market data and minimise the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable.

Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity.

Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgement.

Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgement by the Company’s Directors (the “Management”). Management considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorisation of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to Management’s perceived risk of that instrument.

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, Management’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. Management uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy.

The valuation and classification of securities held by BHGO is disclosed in the notes to BHGO’s Interim Unaudited Financial Statements which are available on the Company’s website.

Income and expenses

The Company records monthly its proportionate share of BHGO’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 Financial Statements in conformity with Accounting Principles Generally Accepted in the United States of America 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 those 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.

Share issue expenses

Share issue expenses of US$10,552,146 were borne by the Company and were charged against the Share capital account at launch. In accordance with the Placing Agreement dated 28 April 2008, the Manager paid the costs and expenses of, and incidental to, the Offer (including all costs related to the establishment of the Company) (the “Offer Costs”) which were in excess of 1% of the gross proceeds of the Offer. The Offer Costs paid by the Manager amounted to US$26,559,274.

Pursuant to the terms of the Management Agreement, the Company must repay to the Manager a fraction of these Offer Costs for every US Dollar by which repurchases, redemptions or cancellations of the Company’s shares reduce the Current US Dollar NAV of the Company below its NAV at the time of the Company’s listing, being US$1,044,631,308. The Current US Dollar NAV is calculated using the exchange rates ruling at the time of the Company’s listings and at 30 June 2012 stood at US$1,168,197,654. The amount of these Offer Costs to be repaid for every US Dollar by which the Company’s NAV is reduced will be up to 2.55 cents (or such lower amount as may result in the reduction in the Offer Costs actually paid by the Manager), being the figure obtained by dividing the Offer Costs by the NAV of the Company at the time of its listing. No such payments were due in respect of the current or previous years.

In addition, if the Management Agreement were to be terminated for certain grounds either in whole or with respect to a class of shares on or before the seventh anniversary of admission to the London Stock Exchange, being 29 May 2015, any Offer Costs that have not already been repaid to the Manager (or, in the case of termination in respect of a class of shares, the Offer Costs attributable to such class), will be repaid in full to the Manager by the Company. Any repurchases, redemptions or cancellations will be priced to take into account any fractional Offer Cost repayments and therefore ensure that continuing shareholders should not be prejudiced. The Directors consider the likelihood of the Management Agreement terminating and as a consequence the contingent liability described above arising as remote and therefore no provision has been made within these Interim Unaudited Financial Statements.

The Directors confirm that there are no other contingent liabilities that require disclosure or provision.

Foreign exchange

Investment securities and other assets and liabilities denominated in foreign currencies are translated into US Dollars using exchange rates at the reporting date for the purposes of an aggregated share class Unaudited Statement of Operations. The currency gain or loss arising from this translation is substantially offset by currency gains or losses allocated from BHGO.

Transactions denominated in foreign currencies are translated into US Dollars using exchange rates at the date of such transactions.

All currency gains and losses are included in the Unaudited Statement of Operations.

Treasury shares

Where the Company purchases its own share capital, the consideration paid, which includes any directly attributable costs, is recognised as a deduction from equity shareholders’ funds through the Share capital account. When such shares are 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 8 or in the Financial Highlights in note 11.

Management and administration agreements

Management fee

The Company has entered into a management agreement with the Manager to manage the Company’s investment portfolio. The Manager receives a management fee of 1/12 of 0.50% (or a pro rata proportion thereof) per month of the closing NAV (before deduction of that month’s management fee) as at the last valuation day in each month, payable monthly in arrears. BHGO itself is not subject to management fees, however BHGO’s investments are subject to management fees ranging from 1.5% to 3% per annum. During the period ended 30 June 2012, US$2,571,167 (31 December 2011: US$5,146,172, 30 June 2011: US$2,532,120) was charged by the Manager as management fees. At 30 June 2012, US$395,141 (31 December 2011: US$425,005, 30 June 2011: US$416,084) of the fee remained outstanding.

The management agreement may be terminated by either party giving the other party not less than 24 months written notice. In certain circumstances the Company will be obliged to pay compensation to the Manager of the aggregate management fees which would otherwise have been payable during the 24 months following the date of such notice. Compensation is not payable if more than 24 months notice of termination is given.

Administration fee

The Company has appointed Northern Trust International Fund Administration Services (Guernsey) Limited as Administrator, Registrar and Corporate Secretary. The Administrator is paid fees based on the NAV of the Company, payable monthly in arrears. The fee is at a rate of 0.03% of the first US$1 billion of net assets of the Company and then 0.01% per annum thereafter, subject to a minimum fee of £115,000 per annum. In addition to the NAV based fee the Administrator is also entitled to an annual fee of £36,000 for certain additional administration services. The Administrator is entitled to be reimbursed out-of-pocket expenses incurred in the course of carrying out its duties as Administrator.

Directors’ fees

The Chairman is entitled to a fee of £140,000 per annum. John Hallam as Chairman of the Audit Committee is entitled to a fee of £33,000 per annum. All other Directors receive £30,000 per annum. The Directors are also entitled to be reimbursed for expenses properly incurred in the performance of their duties as Directors.

With effect from 1 July 2012, fees paid to the Chairman, the Chairman of Committees and to the Directors will increase to £150,000, £36,000 and £33,000 respectively.

Share capital

Issued and authorised share capital

The Company has the authority 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 three classes denominated in US Dollars, Euro and Sterling. Further issue of shares may be made in accordance with the Articles. Shares may be issued in differing currency classes of ordinary redeemable shares including C shares. The treasury shares have arisen as a result of the discount management programme as described in note 9.

For the period from 1 January 2012 to 30 June 2012

Reconciliation of number of shares

US Dollar shares

Euro shares

Sterling shares

Number of ordinary shares

In issue at 1 January 2012

15,185,614

2,919,762

39,910,912

Share conversions

152,116

(157,412)

34,148

Partial capital return

(695,168)

(145,765)

(1,789,795)

In issue at 30 June 2012

14,642,562

2,616,585

38,155,265

Number of treasury shares

In issue at 1 January 2012

1,465,294

259,973

2,940,103

In issue at 30 June 2012

1,465,294

259,973

2,940,103

Percentage of class

9.10%

9.04%

7.15%

Company Total

US$’000

€’000

£’000

US$’000

Share capital account

At 1 January 2012

123,495

19,164

419,707

936,081

Share conversions

1,934

(1,987)

411

–

Partial capital return

(8,402)

(1,777)

(21,874)

(44,967)

At 30 June 2012

117,027

15,400

398,244

891,114

For the year from 1 January 2011 to 31 December 2011

Reconciliation of number of shares

US Dollar shares

Euro shares

Sterling shares

Number of ordinary shares

In issue at 1 January 2011

21,859,989

3,333,754

36,417,607

Share conversions

(6,172,743)

(261,391)

4,011,121

Purchase of own shares into treasury

(501,632)

(152,601)

(517,816)

In issue at 31 December 2011

15,185,614

2,919,762

39,910,912

Number of treasury shares

In issue at 1 January 2011

2,385,662

349,712

2,422,287

Shares purchased and held in treasury during the year:

– Other on market purchases

501,632

152,601

517,816

Shares cancelled

(1,422,000)

(242,340)

–

In issue at 31 December 2011

1,465,294

259,973

2,940,103

Percentage of class

8.80%

8.18%

6.86%

Company Total

US$’000

€’000

£’000

US$’000

Share capital account

In issue at 1 January 2011

203,264

23,998

376,538

953,028

Share conversions

(74,380)

(3,171)

48,841

–

Purchase of own shares into treasury

(5,389)

(1,663)

(5,672)

(16,947)

At 31 December 2011

123,495

19,164

419,707

936,081

For the period from 1 January 2011 to 30 June 2011

Reconciliation of number of shares

US Dollar shares

Euro shares

Sterling shares

Number of ordinary shares

In issue at 1 January 2011

21,859,989

3,333,754

36,417,607

Share conversions

(4,282,370)

(177,610)

2,779,227

Purchase of own shares into treasury

(501,632)

(106,571)

(362,816)

In issue at 30 June 2011

17,075,987

3,049,573

38,834,018

Number of treasury shares

In issue at 1 January 2011

2,385,662

349,712

2,422,287

Shares purchased and held in treasury during the period:

– Other on market purchases

501,632

106,571

362,816

Shares cancelled

(1,107,000)

(167,340)

–

In issue at 30 June 2011

1,780,294

288,943

2,785,103

Percentage of class

9.44%

8.65%

6.69%

Company Total

US$’000

€’000

£’000

US$’000

Share capital account

In issue at 1 January 2011

203,264

23,998

376,538

953,028

Share conversions

(50,934)

(2,137)

33,414

–

Purchase of own shares into treasury

(5,389)

(1,152)

(3,958)

(13,425)

At 30 June 2011

146,941

20,709

405,994

939,603

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 BHGO US Dollars shares, BHGO Euro shares and BHGO Sterling shares as calculated by BHGO is allocated to the relevant class account in the Company. Each class account is allocated those costs, pre-paid expenses, losses, dividends, profits, gains and income which the Directors determine in their sole discretion relate to a particular class.

Voting rights

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. Currently, on a vote, a single US Dollar ordinary share has one vote, a single Euro ordinary share has 1.57465 votes and a single Sterling ordinary share has 1.97950 votes.

Treasury shares do not have any voting rights.

Repurchase of shares

The Directors have been granted authority to purchase in the market up to 2,287,925 US Dollar shares, 422,993 Euro shares and 5,987,803 Sterling shares respectively and they intend to seek annual renewal of this authority from shareholders which was last granted on 18 June 2012. The Directors may, at their discretion, utilise this share repurchase authority to address any imbalance between the supply of and demand for shares.

Under the Company’s Articles, the Directors are required to convene a shareholders’ meeting to consider the repurchase of a class of shares in certain circumstances. See note 9 for further details.

Note Purchase Agreement

The Company is party to a Note Purchase Agreement with JP Morgan Chase Bank dated 19 August 2011, pursuant to which the Company may obtain financing of up to approximately US$50 million to be drawn down on a currency-by-currency basis, if required, to finance share buybacks pending receipt of the proceeds of redemption from its underlying investments. As at the date of this report, this financing has not been utilised.

Further issue of shares

As approved by the shareholders at the Annual General Meeting held on 18 June 2012 (the “AGM”), the Directors have the power to issue further shares on a non pre-emptive basis for cash in respect of 5,087,162 US Dollar shares, 940,517 Euro shares and 13,313,775 Sterling shares respectively. This power expires on the date falling fifteen months after the date of the AGM or the conclusion of the next Annual General Meeting of the Company, whichever is the earlier.

Distributions

BHGO does not expect to pay dividends to its investors. Therefore, the Directors of the Company do not expect to declare any dividends. 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.

Treasury shares are not entitled to distributions.

Annual redemption offer

Each calendar year the Directors may, in their absolute discretion, determine that the Company should make an offer to redeem such number of shares of the Company in issue as they may determine provided that the maximum amount distributed does not exceed 100% of the increase in the NAV of the Company in the prior calendar year.

The Directors shall, in their absolute discretion, determine the particular class or classes of shares in respect of which an Annual Redemption Offer will be made, the timetable for that Annual Redemption Offer and the price at which the shares of each relevant class will be redeemed.

Whether a return of capital is made in any particular year and, if so, the amount of the return, may depend, among other things, on prevailing market conditions, the ability of the Company to liquidate its investment to fund the capital return, the success of prior capital returns and applicable legal, regulatory and tax considerations.

On 29 June 2012 the following number of each class of shares were redeemed and cancelled pursuant to the 2012 redemption offer:

695,168 US Dollar shares at a redemption price of US$12.0862, equalling a gross redemption of US$8,401,939.

145,765 Euro shares at a redemption price of €12.1929, equalling a gross redemption of €1,777,298.

1,789,795 Sterling Shares at a redemption price of £12.2220. equalling a gross redemption of £21,874,874.

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 another class. From 31 October 2008 shareholders at the discretion of the Board have been able to convert ordinary shares on the last business day of every month. Each conversion will be based on NAV (note 8) of the share classes to be converted.

Taxation

Overview

The Company is exempt from taxation in Guernsey under the provisions of the Income Tax (Exempt Bodies) (Guernsey) Ordinance 1989.

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 Financial Statements. Income tax and related interest and penalties would be recognised by the Company as tax expense in the Statement of Operations if the tax positions were deemed to not 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 the Cayman Islands and foreign jurisdictions where the Company makes significant investments. The Company has no examinations by tax authorities in progress.

Management has analysed the Company’s tax positions, and has concluded that no liability for unrecognised tax benefits should be recorded related to uncertain tax positions. Further, Management is 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 next twelve months.

Foreign Account Tax Compliance Act

It is anticipated that with effect from 1 January 2013 the Foreign Account Tax Compliance Act (FATCA) will become effective. The legislation is aimed at determining the ownership of US assets in foreign accounts and improving US tax compliance with respect to those assets. The Board is in discussion with the Company’s service providers to ensure that the Company will comply with the Act’s requirements.

Publication and calculation of net asset value

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 share class 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 BHGO, 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 BHGO, weekly in arrears.

Discount management programme

The Company’s discount management programme includes the ability to make market purchases of shares and the obligation to propose class closure resolutions if, in any fixed discount management period (1 January to 31 December each year), the average daily closing market price of the relevant class of shares during such period is 10% or more below the average NAV per share of the relevant class taken over the 12 monthly NAV Determination Dates in that fixed discount management period, as described more fully in the Company’s Principal documents.

In the event a class closure resolution is passed, shareholders in a class have the following options available to them:

(i) to redeem all or some of their shares at NAV per share less the costs and expenses of the class closure vote and other outstanding costs and expenses of the Company attributable to the relevant class (including any redemption fees and repayment of Offer Costs as described in note 3);

(ii) subject to certain limitations, to convert all or some of their shares into shares of another class, assuming that other class does not also pass a class closure resolution; or

(iii) subject to the class continuing, to remain in the class.

These provisions are disclosed in more detail in the Company’s Articles.

The Annual Redemption Offer described in note 6 which enables a partial return of capital is also part of the discount management programme.

The discount management measures will be funded by partial redemptions of the Company’s investment in BHGO.

The total numbers of treasury shares held in treasury at 30 June 2012 are as disclosed in note 6.

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 other party in making financial or operational decisions.

The Directors are responsible for the determination of the investment policy of the Company and have overall responsibility for the Company’s activities.

The Company is managed by the Manager.

The Company and the Manager have entered into a Management Agreement dated 21 June 2010 under which the Manager has been given responsibility for the day-to-day discretionary management of the Company’s assets (including uninvested cash) in accordance with the Company’s investment objective and policy, subject to the overall supervision of the Directors and in accordance with the investment restrictions in the Management Agreement and the Articles of Association. Details of the management fees to which the Manager is entitled are in note 4.

The Company has six non-executive Directors. Lord Turnbull, John Hallam, Graham Harrison and Nicholas Moss are independent of the Manager.

Talmai Morgan and Stephen Stonberg are both non-executive Directors of BH Macro Limited. BH Macro Limited is managed by the Manager, and is a feeder fund for Brevan Howard Master Fund Limited into which BHGO invests.

Stephen Stonberg is also a non-executive Director of BH Credit Catalysts Limited. BH Credit Catalysts Limited is managed by the Manager, and is a feeder fund for the Brevan Howard Credit Catalysts Master Fund Limited into which the Company’s Master Fund invests.

Details of Directors’ fees to which the Directors are entitled are disclosed in note 5.

The Directors had the following interests in the Company, held either directly or beneficially at 30 June 2012:

US Dollar

Sterling

Euro

Lord Turnbull

Nil

5,000

Nil

John Hallam

5,000

Nil

Graham Harrison

Nil

1,500

Nil

Talmai Morgan

5,000

Nil

Nicholas Moss

Nil

839

Nil

Stephen Stonberg

Nil

8,628

Nil

As at 30 June 2012 Alan Howard, a Brevan Howard founder, held an interest of 706,375 US Dollar shares and 161,107 Sterling shares in the Company which he acquired through on-market purchases, as detailed in stock exchange announcements made on 28 November 2008.

Financial highlights

The following tables include selected data for a single ordinary share of each of the ordinary share classes in issue at the period end and other performance information derived from the Unaudited Interim Financial Statements.

The per share amounts and ratios which are shown reflect the income and expenses of the Company for each class of ordinary share.

30.06.12

US Dollar shares

Euro shares

Sterling shares

US$

€

Per share operating performance

Net asset value at beginning of the period

12.34

12.46

12.47

Expense from investment operations

Net investment loss*

(0.05)

Net realised and unrealised gain on investment

(0.03)

(0.02)

Other capital items**

0.01

–

0.01

Total return*

(0.07)

(0.06)

Net asset value, end of the period

12.27

12.39

12.41

Total return*

(0.61%)

(0.53%)

(0.47%)

Total return reflects the net return for an investment made at the beginning of the period and is calculated as the change in the NAV per ordinary share during the period from 1 January 2012 to 30 June 2012. Total return is not annualised.

30.06.12

US Dollar shares

Euro shares

Sterling shares

US$’000

€’000

£’000

Supplemental data

Net asset value, end of the period

179,599

32,421

473,628

Average net asset value for the period

188,552

35,719

500,303

30.06.12

US Dollar shares

Euro shares

Sterling shares

Ratio to average net assets

Operating expense

Company expenses***

0.37%

0.44%

0.36%

BHGO expenses****

0.01%

0.38%

0.45%

0.37%

Net investment loss*

(0.41%)

(0.34%)

(0.37%)

31.12.11

US Dollar shares

Euro shares

Sterling shares

US$

€

Per share operating performance

Net asset value at beginning of the year

11.79

11.86

11.92

Income from investment operations

Net investment loss*

(0.08)

(0.09)

(0.08)

Net realised and unrealised gain on investment

0.71

0.66

0.59

Other capital items**

(0.08)

0.03

0.04

Total return*

0.55

0.60

0.55

Net asset value, end of the year

12.34

12.46

12.47

Total return*

4.69%

5.04%

4.65%

Total return reflects the net return 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 from 1 January 2011 to 31 December 2011.

31.12.11

US Dollar shares

Euro shares

Sterling shares

US$’000

€’000

£’000

Supplemental data

Net asset value, end of the year

187,393

36,372

497,755

Average net asset value for the year

215,735

38,040

473,389

31.12.11

US Dollar shares

Euro shares

Sterling shares

Ratio to average net assets

Operating expense

Company expenses***

0.70%

0.68%

0.67%

BHGO expenses****

0.01%

0.71%

0.69%

0.68%

Net investment loss*

(0.56%)

(0.70%)

(0.71%)

30.06.11

US Dollar shares

Euro shares

Sterling shares

US$

€

Per share operating performance

Net asset value at beginning of the period

11.79

11.86

11.92

Income from investment operations

Net investment loss*

(0.03)

(0.04)

Net realised and unrealised gain on investment

0.23

0.22

0.19

Other capital items**

–

0.03

0.02

Total return*

0.20

0.21

0.17

Net asset value, end of the period

11.99

12.07

12.09

Total return*

1.68%

1.78%

1.47%

30.06.11

US Dollar shares

Euro shares

Sterling shares

US$’000

€’000

£’000

Supplemental data

Net asset value, end of the period

204,655

36,810

469,629

Average net asset value for the period

232,888

38,747

454,332

30.06.11

US Dollar shares

Euro shares

Sterling shares

Ratio to average net assets

Operating expense

Company expenses***

0.33%

0.30%

0.33%

BHGO expenses****

0.01%

0.34%

0.31%

0.34%

Net investment loss*

(0.22%)

(0.30%)

(0.37%)

Operating expense and net investment loss are not annualised.

The net investment loss figures disclosed above, in the Directors’ opinion and in accordance with the Company’s investment objectives, do not reflect the Company’s overall performance.

** Included in other capital items are the discounts and premiums on conversions between share classes, the sale of treasury shares and capital returns as compared to the NAV per share at the beginning of the period.

*** Company expenses are as disclosed in the Unaudited Statement of Operations, excluding foreign exchange losses on consolidation.

**** BHGO expenses are the operating expenses of BHGO.

Subsequent events

Management has evaluated subsequent events up to 22 August 2012, which is the date that the Interim Unaudited Financial Statements were available to be issued, and has concluded there are no further items that require disclosure or adjustment to the Interim Unaudited Financial Statements.

Historic Performance Summary

As at 30 June 2012

30.06.12*

31.12.11

31.12.10

31.12.09

(Unaudited)

(Audited)

US$’000

Net increase/(decrease) in net assets resulting from operations

8,323

39,147

(13,348)

166,593

Total assets

1,009,433

1,000,993

979,050

992,245

Total liabilities

(45,712)

(628)

(885)

(732)

Net assets

963,721

1,000,365

978,165

991,513

Number of shares in issue

US Dollar shares

14,642,562

15,185,614

21,859,989

26,766,139

Euro shares

2,616,585

2,919,762

3,333,754

5,392,188

Sterling shares

38,155,265

39,910,912

36,417,607

31,461,725

Net asset value per share

US Dollar shares

US$12.27

US$12.34

US$11.79

US$11.61

Euro shares

€12.39

€12.46

€11.86

€11.66

Sterling shares

£12.41

£12.47

£11.92

£11.73

Covers the period from 1 January 2012 to 30 June 2012.

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Hiper Global Ltd. Interim / Quarterly Report 2012

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Hiper Global Ltd. — Interim / Quarterly Report 2012

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