H2O assets drop over 30% in four days

On the 07.09.19 at 11:47AM


Adrien Paredes-Vanheule

Bruno Crastes' asset management boutique has released a statement on 8 July.

Natixis Investment Managers' affiliate H2O Asset Management has recorded redemptions of around €8bn following headlines in the media around illiquid private debt positions in H2O funds, especially H2O Allegro.  

The boutique branded "deeply-unfair" the media interest for these positions that represented 3.7% of the firm's assets overall. 

"We are now recovering and receiving new subscriptions, with €869m gross in total since 18 June 2019", said H2O which had removed entry fees of its funds as a lever to stem redemptions.

Responding to the liquidity concerns, H2O AM said 95% of its strategies "were, and remain, perfectly liquid", adding that "there is no relationship between the daily liquidity of our funds and our business with Tennor Holdings."

The firm said its commitment to the daily liquidity of its funds "was known and has just been put to the test." H2O explained it has lost more than 30% of its Ucits funds in four days and has been "forced to lower the value of certain securities in the wake of market commotion." 

It also said it will carefully study the recommendations of the ongoing audits.

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