H2O Asset Management Faces Serious Concerns Over Liquidity

H2O Asset Management is Heavily Exposed to Illiquid Investments, Bringing to Mind Earlier Crises

H20 Asset Management is a London, UK-based subsidiary of a large French investment bank called Natixis. Currently, H20 Asset Management is believed to have tens of billions in investments under its control.

However, in recent weeks, major questions have been raised about the liquidity of the firm’s investments.

According to reporting from the Financial Times, investment fund industry experts are warning people to be careful when investing in H20 Asset Management and other similar entities.

Morningstar Downgraded the H20 Allegro Fund

Citing concerns over liquidity, as well as the fund’s link to a German financier with a questionable record, Morningstar downgraded the H20 Allegro fund. As noted by the global investment research company, many illiquid bonds held by the fund have already been sold at a reduced price. At least six other funds owned and managed by H20 have also been called into question.

Notably, in response to this issue, Bank of England Governor Mark Carney has called for new regulations on illiquid funds such as H20 Asset Management. In striking remarks made before officials, Mr. Carney stated that these types of funds are “built on a lie.”

Jeffrey R. Sonn is an investment fraud lawyer with extensive experience holding negligent financial advisors and brokerage firms accountable. If you sustained significant investment losses in unsuitable or illiquid investments, Mr. Sonn can help. For a free, completely confidential case evaluation, please contact the Sonn Law Group today.