(Bloomberg) -- H2O Asset Management says redemptions from its funds have “markedly subsided” after assets plunged by more than $6 billion over four days.
The company said clients pulled 450 million euros from its funds on Wednesday, bringing assets under management to 27 billion euros. That's a big drop from the $37.6 billion in assets the firm had in April.
“Fund flows are returning to normal,” Chief Executive Officer Bruno Crastes said in a statement. “We would like to thank our investors for their continued commitment to H2O and to reiterate that 98% of assets held by our funds are perfectly liquid.”
H2O's crisis started after the Financial Times showed the exposure of several of its funds to companies related to Lars Windhorst, a German financier with a history of troubled investments. Morningstar Inc., a research firm used by investors as a guide to buy or sell funds, subsequently suspended its bronze rating on the Allegro fund over concerns about the “liquidity and appropriateness” of some of its holdings.
To contact the reporter on this story: Lucca de Paoli in London at gdepaoli1@bloomberg.net
To contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net, Abigail Moses
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
