Natixis supports the measures announced by H2O Asset Management and confirms the principles of its multi-affiliates model
24 Juin 2019 - 07:25AM
Natixis supports the measures announced by H2O Asset Management and
confirms the principles of its multi-affiliates model
Paris, June 24, 2019
Natixis supports the measures announced by
H2O Asset Management and confirms
the principles of its multi-affiliates model
Following the information released on 20th June
2019 by Natixis and H2O Asset Management and the statements of H2O
Asset Management made earlier today, Natixis today provides the
following additional information.
- Natixis supports the measures announced by
H2O
Asset Management relating to the following
topics:
Intrinsic liquidity of
securities
Regarding the intrinsic liquidity of securities
that have been considered as illiquid, H2O AM teams have continued
to adopt the required measures in order to fully ensure their
valuation in regards of their condition of liquidity.
The relevant assets are private debt securities
relating to a wide variety of companies, none of which are
currently in a default situation. However, considering the current
environment, the H2O AM teams have decided to record these
securities at their transactional value in case of an immediate
total sale rather than recording them at their standard market
value, it being specified that their transactional value has been
determined with valuations obtained this Sunday from international
banks which are independent from Natixis. Such securities represent
a total exposure for H2O funds of less than 2% of the outstanding
amounts under these funds (source H2O AM). This will enable
remaining clients and new investors to retrieve the long-term value
of their securities.
The liquidity of the securities is ensured and
will allow to face potential additional withdrawals, if some
clients decide to partially sell their funds due to a concern about
the media coverage associated with these securities. In addition,
the long-term performance drivers of H2O funds, which have been
proven over numerous years to the benefit of our clients, remain
unaffected as they are not related to this type of investment (see
detailed press release of H2O AM dated 20 June 2019).
Removal of entrance fees
H2O AM has announced the removal until further
notice of all the entrance fees that had been implemented several
months ago in all their funds.
Additionally, H2O AM has announced the
implementation, in 2017, of swing pricing rules with a view to
protecting the security holders remaining in the funds from the
payment of fees incurred by investor exits. Such fees will
therefore be borne by those investors requesting the buyback of
their securities.
- Natixis confirms the principles of its
multi-affiliates model for asset management
Natixis’ asset management model relies on 25
management companies, all of which are independent from each other,
autonomous in their investment policy and rely on talented
investment managers. Natixis Investment Managers provides a global
distribution platform for the benefit of all its affiliates and, in
particular, monitors the control and compliance functions.
In the context of restoring confidence in H2O
Asset Management, Natixis has also decided to bring forward the
periodic audit performed on this affiliate, by implementing it as
of 21 June 2019. By way of reminder, the General Inspection of the
bank performs an audit of all the affiliates of Natixis Investment
Managers on a regular basis.
As of 31 March 2019, the assets under management
by our 25 affiliates are equal to 855 billion euros. The
differences in the management approach of each of these affiliates
enable to offer a wide range of products in order to satisfy a
customer base which is diverse in terms of geography and risk
appetite.
As of 31 March 2019, H2O Asset Management has
approximately 31 billion euros of assets under management for a
wide customer base. Natixis has 20 million euros of seed money from
Atlantera funds and a commitment of 25 million euros from a fund
which is in the process of being constituted. H2O Asset Management
represents approximately 3.7% of the assets managed by Natixis
Investment Managers and its contribution to the net group income of
Natixis reached 5% in 2017, 11% in 2018 and 6% in the first quarter
of 2019 (excluding IFRIC 21 impact). It is reminded that the
contribution for 2018 included approximately 420 million euros of
performance fees, corresponding to 13% of the 2018 asset management
revenues, versus a long-term average of approximately 7% which is
used as a basis for Natixis New Dimension targets.
About NatixisNatixis is a
French multinational financial services firm specialized in asset
& wealth management, corporate & investment banking,
insurance and payments. A subsidiary of Groupe BPCE, the
second-largest banking group in France through its two retail
banking networks, Banque Populaire and Caisse d’Epargne, Natixis
counts nearly 16,000 employees across 38 countries. Its clients
include corporations, financial institutions, sovereign and
supranational organizations, as well as the customers of Groupe
BPCE’s networks. Listed on the Paris stock exchange, Natixis has a
solid financial base with a CET1 capital under Basel 3(1) of €11.1
billion, a Basel 3 CET1 Ratio(1) of 11.6% and quality long-term
ratings (Standard & Poor’s: A+ / Moody’s: A1 / Fitch Ratings:
A+). (1) Based on CRR-CRD4 rules as reported on June 26, 2013,
including the Danish compromise - without phase-in .Figures as at
31 March 2019
Contacts
Investor
RelationsDamien Souchet +33 1 58 55 41 10Noémie Louvel +33 1 78 40
37 87investorelations@natixis.com |
Press
RelationsDaniel Wilson +33 1 58 19 10 40Sonia Dilouya +33 1 58 19
01 03Vanessa Stephan +33 1 58 19 34
16relationspresse@natixis.com |