H2O Cuts Bond Exposure

Mayfair asset manager H20 has reduced its exposure to non-rated bonds and cut entry fees for its funds in response to fears over illiquid assets and fund outlows

Jocelyn Jovene 24 June, 2019 | 9:20AM James Gard

Decision making

Under-fire Mayfair asset manager H2O said on Monday it had cut its exposure to "non-rated private bonds" to below 2% of assets under management. Following "press reports which dried up market liquidity and widened bid-ask spreads", H2O's funds will now be priced at a discount between 3% and 7%. The firm has also decided to remove entry fees for its funds "until further notice".

H2O owner confirmed last Friday that CEO Bruno Crastes has left a role that prompted Morningstar analysts to place €2.3 billion global macro fund H2O Allegro “Under Review”.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
H2O Allegro EUR-I C133,371.68 EUR12.30
Natixis3.49 EUR0.00

About Author

Jocelyn Jovene

Jocelyn Jovene  is Editor for Morningstar France

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