Natixis Investment Managers has started negotiations with H20 AM to end their partnership. During the presentation of its quarterly results, the company revealed that the firm of Bruno Crastes is no longer a strategic asset for them.
In a joint communication, both asset managers explained they have entered into discussions to initiate “a progressive and orderly” unwind of their partnership. The process has to be considered by relevant regulatory authorities and will require regulatory approvals.
These discussions relate to a potential gradual sale of Natixis IM’s stake in its subsidiary and include plans for H2O AM to take over the distribution of its products over a transition period due to last until the end of 2021. The management company intends on giving a new direction to its development as the 10-year lock-up period provided for in its shareholder covenant with Natixis IM has come to an end, said the firms.
“In due course and in line with the regulatory process, H2O AM will make a further announcement regarding the impact of these proposals on its business, including its shareholding structure and changes to its governance approach”, they added in the press release.
This process will put an end to a situation that Natixis IM drags since 2019. In fact, last September, the French financial markets authority (AMF) asked H2O AM to suspend all subscriptions and redemptions in three of its funds: H2O Allegro, H2O MultiBonds and H2O MultiStrategies. The asset manager solved its liquidity problems with certain assets through a side pocket mechanism.
A new “European asset management leader”
Last week, Natixis also announced that it has completed with La Banque Postale the combination of their fixed-income and insurance-related asset management activities within Ostrum Asset Management. Both firms are reorganizing those businesses to give them a new dimension in an environment of persistent low interest rates.
“The closing of this combination on October 31 creates a European asset management leader with more than 430 billion euros in assets under management and over 590 billion euros under administration through its services platform as at end-September 2020”, they revealed in a press release.
The combined activities will be housed within Ostrum AM, owned 55% by Natixis through Natixis Investment Managers, and 45% by La Banque Postale as part of its asset management division. Ostrum AM will provide two distinct and independent offerings: asset management and investment services. In line with its client-centric organization, it is setting up two sales teams to manage all aspects of client relationships, one team for asset management and the other focused on its services platform.
Por Funds Society, Madrid
