Shareholders lose faith in Natixis after H2O scandal

Data from Procensus poll

Some 70% of institutional shareholders responding to a poll by opinion-sharing platform Procensus have said the recent H2O scandal has eroded their perception of the quality of the Natixis franchise.

Natixis, the parent company of H2O Asset Management, saw its stock slump 14% in late June after the H2O Allegro fund was placed under review by Morningstar on concerns over its illiquid bond holdings. The rating was later cut to reflect the rating provider's assessment of the risks. H2O came under fire for its close relationship with controversial German financier Lars Windhorst, its investment in bonds within his empire and the questionable liquidity of these instruments, as well as the conflict of interest posed by the appointment of H2O CEO Bruno Crastes on the board of one of Windhor...