H20 assets on a sixth-day bleeding crisis


Assets of Natixis-backed investment fund, H20 Funds Asset Management has continued on a sixth-day drop after the fund witnessed unprecedented outflows.

H20 had announced yesterday that it had separated distressed assets as well as its portfolio in private bonds. The fund has also tinkered with the scrapping of entry fees to encourage inflows.

In the last six days, H20 has paid out over $6.5 billion to its investors who took a run to the fund for withdrawals.

However, on Wednesday, H20 announced that “There have been substantial inflows since Monday 24 June 2019 and current AuM, as of 26th June, stands at €27 bn.”

There were no details given on the total amount of inflows into the fund. H20 Fund has suffered massive redemptions since Monday totaling to about $6.5 billion.

It, however, said withdrawals have “subsided to a level roughly five times less than at their peak (on 21 June), down to €450m today.”

It is not clear if H20 will suspend withdrawals as in the case of GAM Holdings and Neil Woodford’s fund which suspended withdrawals despite still charging management fees.

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