|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's range||1.9500 - 2.0540|
|52-week range||1.4710 - 4.4110|
|Beta (5Y monthly)||1.12|
|PE ratio (TTM)||16.67|
|Earnings date||05 Nov 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||05 May 2020|
|1y target est||6.07|
(Bloomberg Opinion) -- Investors whose money is trapped in eight funds run by H2O Asset Management are learning a hard lesson in what can happen when a portfolio manager is seduced into buying illiquid securities.It’s been more than a year since the Financial Times reported that H2O, part of Natixis SA’s fund management stable, had loaded up on bonds issued by companies related to German entrepreneur Lars Windhorst. In a letter just sent to its clients, H2O now says it’s marked down the value of those investments by 60%.Moreover, at least one of the bonds H2O invested in seems to have passed its original maturity date without being repaid. The fund owns about 77% of a 500 million-euro ($590 million) bond issued by Chain Finance, a Windhorst company. That bond was scheduled for repayment on Aug. 11; instead, the maturity date has been extended by 90 days to Nov. 11, according to data compiled by Bloomberg.In May, H2O agreed to sell the private investments back to Windhorst. Bloomberg News reported last month that Windhorst was securing financing to repurchase notes with a nominal value of more than 2 billion euros, at a discount of about 50%. In other words, H2O would forgo about 1 billion euros to get the investments off its books.Now, the asset manager says the transaction has been held up. “Completion is delayed, and we are not able to predict when it will be completed,” H2O said in the letter dated Wednesday.Investors are currently trapped. Last month, the French regulator intervened and ordered the company to halt redemptions from some of its portfolios due to “valuation uncertainties on the significant exposure of these funds to private securities.” That’s an embarrassing slap for Bruno Crastes, H2O’s co-founder and chief executive officer. But where does it leave his investors?Well, those with cash in the 3.4 billion-euro MultiBonds fund face having as much as 30% of their money split into a so-called side pocket that will own just the illiquid Windhorst securities. Holders of the 887 million-euro Allegro fund could see 35% of their investments allocated to the private debt that, remember, H2O has already marked down by 60%.And while H2O says it has additional collateral in the form of shares of Windhorst’s Tennor Group companies that could improve those numbers, that’s not a given. It goes on to say that “the downside risk is that these estimates could be significantly marked down should the Tennor Group companies come under major difficulties.” Moreover, it’s far from clear whether Windhorst will in fact repurchase the debt.As Neil Woodford and GAM Holding AG learned to their cost, investors are quick to pull their cash from funds that get caught out when hard-to-sell securities turn out to be, well, hard to sell. At the end of 2018, H2O oversaw about $33 billion; by June 30, that was down to about $26 billion. The risk is that, once investors have their withdrawal rights back, there’s a stampede for the exit that will make H2O a much smaller player. It’s an ironic outcome for a fund named after the chemical symbol for water.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Name of issuer: NATIXIS S.A. joint stock company with a share capital of 5,049,522,403.20 euros Registered under the nr B 542 044 524 RCS Paris Registered Office: 30 avenue Pierre Mendes-France - 75013 ParisInformation relating to the total number total of voting rights and of shares pursuant to Article L.233-8 II of the French Commercial Code and Article 223-16 of the Autorité des Marchés Financiers (AMF) General Regulations. Date Number of shares composing current share capitalTotal number of voting rights August 31, 2020 3,155,951,502 Gross total: 3,155,951,502 Net total*: 3,150,902,728 *Net total: total number of voting rights attached to the total number of shares – shares without voting rights (treasury stock, etc.)The €5,049,522,403.20 share capital has been registered by a decision of the Chief Executive Officer on July 28, 2020. Note: This translation is for information purposes only. In case of inconsistencies between the French version and the English version of this document, the French version shall prevail.Attachment * Natixis_monthly_info_equity_distribution_20200831
(Bloomberg) -- Financier Lars Windhorst has secured funding from two high-profile German investors to help him buy back illiquid bonds from H2O Asset Management that were at the center of a crisis last year.Fashion retail magnate Friedrich Knapp and health care entrepreneur Ulrich Marseille have contributed about 500 million euros ($595 million) of a 1.25 billion euro high-yield bond issued by a Windhorst vehicle to buy back the portfolio, according to people familiar with the matter and a presentation seen by Bloomberg. The investors’ support is key for Windhorst, who in May agreed to repurchase the bonds -- that were issued by companies tied to him -- at discounted prices.For H2O, the asset manager part-owned by Natixis SA, the sale of the bonds caps a rocky stretch that began with revelations about the investments’ links to the German financier. Research firm Morningstar Inc. last year flagged concerns about the rarely traded securities being held by H2O funds that allowed clients to make daily withdrawals. The potential for a liquidity crunch subsequently triggered about 8 billion euros of fund outflows.Selling the bonds back to Windhorst allows H2O to unwind the illiquid assets that at the time prompted concerns about the firm’s risk controls. The proceeds of his high-yield bond sale will be used to buy back notes with a nominal value of more than 2 billion euros, according to the presentation. That represents a discount of roughly 50%, allowing Windhorst to make a profit of more than 1 billion euros.Read more: Natixis’ H2O Agrees to Sell Stocks, Bonds to Windhorst’s VehicleSpokespeople for Windhorst and H2O declined to comment. Marseille confirmed by phone that he invested in the vehicle. Representatives for businesses owned by Knapp in New York declined to comment.H2O on Friday suspended trading in eight funds with holdings of illiquid securities following pressure from France’s markets regulator. The AMF asked the firm to suspend subscriptions and redemptions in its Allegro, MultiBonds and MultiStrategies funds for around four weeks, according to a statement on H2O’s website. H2O said it decided to freeze five other funds that were also exposed to the securities.More InvestorsKnapp, Marseille and a third unidentified investor bought about half of the notes, people said. Windhorst himself invested about 400 million euros in his own bonds and a few outside investors took the rest, the people added. The German financier has recently held talks with other potential investors about taking part in the raise, some of the people said.H2O agreed to sell the securities to Evergreen Funding, a new company owned by Windhorst’s trust, Bloomberg reported in May. The following month, Evergreen issued a 1.25 billion euro one-year bond paying a yield of 12.5%, according to the investor presentation seen by Bloomberg.The pitch won over two of Germany’s self-made entrepreneurs. Knapp, 67, owns German fashion retail chain New Yorker which boasts more than 1,100 branches and 18,000 employees. Marseille made a fortune in sanatoriums, rehab and other specialized clinics.(Updates with H2O fund suspensions in 6th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.