Natixis IM looks to 'unwind' H2O AM partnership

Subsidiary faces risk management questions

The asset management division of French investment bank Natixis is set to cut ties with H2O Asset Management, following regulatory and investor scrutiny of the subsidiary's risk management.

In a joint statement published this morning (6 November), Natixis Investment Management and H2O confirmed they were in "discussions" to "unwind the partnership". H2O AM has been embroiled in a liquidity crisis this year as seven funds - H2O Adagio, H2O Moderato, H2O MultiBonds, H2O Allegro, H2O Vivace, H2O MultiStrategies and H2O MultiEquities - were suspended in August, following the French regulator's request for Allegro, MultiBonds and MultiStrategies to be suspended due to "significant exposure" to private securities. The funds are in the process of reopening, with the firm creati...