PARIS (Reuters) – H20, the London-based fund management arm of French bank Natixis which has been hit by outflows of money, said on Monday it had sold some of its bonds portfolio.
“H2O has sold part of its non-rated private bonds and, based on a valuation received by international banks, marked down the balance in compliance with UCITS regulation, thereby cutting their aggregate market value below 2% of H2O’s assets under management,” H20 said in a statement.
“Following this mark down, triggered by press reports which dried up market liquidity and widened bid-ask spreads, H2O’s funds will be priced at a discount between 3% and 7%. H2O has decided to remove all entry fees across all funds until further notice,” the fund management company added.
Reporting by Sudip Kar-Gupta, Editing by Sherry Jacob-Phillips