The decision to suspend these funds was taken in the interests of unitholders and in order to ensure their fair treatment. The 16 other funds managed by H2O AM remain open to subscriptions and redemptions.
Natixis supports these measures, which are aimed at protecting investors’ interests.
H2O AM is a unique asset manager created within Natixis Investment Managers, differentiated by its specific global macro investment strategies. It is one of the 24 asset management companies, which are independent from each other and autonomous in their investment policies, that constitute Natixis’ diversified asset management model.
The suspension of these funds has no financial impact on Natixis, either on the balance sheet or on the income statement. Natixis holds 50.01% of H2O AM shares via Natixis Investment Managers, while the affiliate’s assets under management account for 2.3% of Natixis Investment Managers’ total AuM2. Natixis’ investments in H2O AM’s funds total €20 million in seed money and €60 million via H2O Asset Management’s cash invested in its funds.
H2O AM’s contribution to Natixis’ net income group share is limited (€4 million in the second quarter of 2020) and should remain so over the quarters ahead, as performance fees from H2O AM were no longer expected given the impact of the Covid-19 crisis, which affected the recent performance of its funds. Excluding performance fees, H2O AM’s contribution to Natixis’ 2019 results was limited to:
- around €150 million in net revenues, i.e. less than 2% of Natixis’ underlying net revenues3;
- around €30 million in net income group share, i.e. approximately 2.5% of Natixis’ underlying net income3.
For more information, please read the article on H2O Asset Management website: Temporary Suspension of H2O Funds
2 Figures at end-June 2020.
3 Excluding exceptional items and excluding H2O AM’s performance fees contribution.