Assets under management as of 31/01/2022
Years of Experience in Asset Management
H2O Asset Management LLP (“H2O”) is a global macro investment management company founded in August 2010. In addition to its main office in London, H2O has opened offices in Monaco (H2O Monaco), in Singapore (H2O AM Asia), in Paris (H2O AM Europe) and in Geneva (H2O AM Switzerland) , which, alongside the London office, form one fully integrated investment process and platform.
From the very beginning H2O entered into a threefold partnership with Natixis Investment Managers (“NIM” (*)): capitalistic as NIM holds 50.01% of the shares with H2O’s partners being allotted the remaining 49.99%; operational as H2O fund managers plugged their front-office systems in the Group’s Straight-Through Processing (STP), back-office and risk-monitoring systems; commercial as NIM is a distributor of H2O’s UCITS.
(*) Natixis Investment Managers serves financial professionals with more insightful ways to construct portfolios. Powered by the expertise of 26 specialized investment managers globally, they apply Active Thinking to deliver proactive solutions that help clients pursue better outcomes in all markets.
A long-term, top-down, mostly relative value, and unconstrained approach.
Investors’ market perception and management biases offer a prime source of performance.
Discretionary investment decisions backed by strong in-house engineering.
Long short strategies driven by market factor analysis
Focus on portfolio construction: diversification by horizon, asset classes and instruments.
Full consistency between view establishment, risk allocation and performance attribution.
At a firm level at H2O Asset Management the integration of sustainability risks is done through a systematic exclusion based on regulatory requirements, client specific requests, and wider Natixis group policies across all funds. These exclusions apply to sectors and countries under international sanctions. In addition, countries identified by FATF require additional due diligence and approval from the Compliance team before any investments can take place. This is consistent with the risk based approach defined in the EU AML Directive. Some of these exclusions can overlap with other exclusions based on the list of forbidden investments from Oslo and Ottawa conventions that are also applied by H2O.
Where the funds invest into individual equity securities, H2O is committed to engagement on ESG matters with the management of the companies by exercising our proxy voting rights. H2O is working on setting up a process to utilise the advice of ISS in its proxy voting considerations. We are currently working on our firm-wide ESG policy, which will provide further information on these matters.
H2O’s investment approach is top-down and global macro. As such, the primary criteria used when making investment decisions relate to macroeconomic themes, market data and broad asset risk considerations rather than a bottom-up analysis of individual corporations and sectors. At present, H2O does not integrate ESG analysis in the management of the entire range of funds. Having said that, as H2O has continued to develop its business and created more market access products, including credit focused portfolios, the investment team has been working on integrating the sustainability factors into the investment process for some of the portfolios. We are also looking at integrating sustainability factors into our front office and risk management tools, with a view to progressively move towards a more broad-based assessment of sustainability risks on our portfolios.
We currently do not perform principal adverse impact assessment at both the firm and product levels on sustainability factors*. However, our policies and procedures will be reviewed accordingly as the opportunities to further incorporate sustainability risks and impact of our business on sustainability factors arise.
At the corporate level H2O promotes sustainability and environmental awareness, and has implemented the following in an effort to reduce our footprint:
- Incorporate energy and water efficiency measures including the use of energy efficient lighting, computer monitors and electric appliances
- Promote efficient use of resources in all areas of business activity
- Implement waste management strategies that promote waste minimisation, including removal of plastic and paper cups, recycling programme across the office premises, use of reusable cups, water bottles and cutlery. We aim to ensure that our waste is disposed of in a way that minimises its impact on the environment
- Promote the use of eco friendly transportation for business travel, as well as the use of the cycle-to-work scheme internally: a large proportion of our staff commutes to work an environment-friendly way (walking, running, cycling, taking the underground)
- Take into account the environmental impact of products we use (carbon neutral paper, recycled office stationary and other office supplies)
- Ensure that our staff is aware of the environmental impacts of their work activities and encourage them through awareness raising.
*”Sustainability factors” mean environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters according to SFDR.
Please see below the list of procedures available for review and download:
- H2O Best Execution
- H2O Broker & Counterparty Selection
- H2O Modern Slavery Statement 2021
- H2O Remuneration policy
- H2O Conflicts of Interest Policy
- H2O Complaints procedure
- H2O Outsourced Service Providers Policy
- H2O Capital Requirements Directive - Pillar 3 Disclosure 2020
- H2O Proxy voting policy
- H2O Swing Pricing Policy FAQ
- MiFID II RTS 28 Report (2020)
- MiFID II RTS 28 Report (2019)
- MiFID II RTS 28 Report (2018)
- MiFID II RTS 28 Report (2017)
- H2O Shareholder Engagement Statement
In its wish to safeguard the interests of its long-term holders, H2O Asset Management has been implementing a swing pricing mechanism since 2017 based on the methodology recommended by the French Asset Management Association’s (AFG) charter.
The introduction of the swing pricing solely concerns the following UCITS funds:
- H2O Adagio FCP
- H2O Moderato FCP
- H2O MultiBonds FCP
- H2O MultiStrategies FCP
- H2O Vivace FCP
- H2O Allegro FCP
- H2O EuroAggregate
- H2O MultiEquities FCP
- H2O Largo
- H2O MultiAggregate Fund
- H2O Multi Emerging Debt Fund
- H2O EuroSovereign
- H2O EuroSovereign 3-5 years
- H2O Barry Active Value
- H2O MultiAsia