Assets under management as of 31/12/2020
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), and in Paris (H2O AM Europe), 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.
An affiliate of
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 present, H2O Asset Management and its affiliates do not integrate sustainability risks* in the investment decision making process or financial advice at a firm level and for the products we offer to clients. Equally, we currently do not perform principal adverse impact assessment at both the firm and product levels on sustainability factors**. However, we are constantly looking at ways to enhance our commitment to ESG and our policies and procedures will be reviewed accordingly as the opportunities to incorporate sustainability risks and impact of our business on sustainability factors arise.
At H2O we believe that environmental, social and/or governance (ESG) issues have an impact on our culture and performance. We embrace ESG as a corporate objective and it is part of both our strategy and culture. It is the aim of H2O to minimise the impact of our operations and services on the environment. We promote sustainability and environmental awareness at all levels of the organisation and implement the following in an effort to reduce/offset our footprint:
– Incorporate energy and water efficiency measures within our office, 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. H2O’s aim is to ensure that our waste is disposed of in a way that minimises its impact on the environment.
– Seek to manage and reduce travel where possible by using video/teleconference meetings, as well as promote use of eco friendly transportation.
o Promoting cycle-to-work scheme internally
o 78% of our staff commute 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 and training to minimise those impacts.
– Pursue a programme of continuous improvement of our procedures and practices.
At the investment decision making level, given the style of H2O’s investment process, ESG and sustainability topics have a limited application to the management of our product range. 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.
- The majority of H2O’s positions are taken through derivatives contracts such as futures, as H2O’s aim is for the funds to be as liquid as possible;
- At present, there is limited exposure to credit within H2O’s portfolios;
- A number of H2O’s products have no exposure to equities, however, even for those pooled funds in H2O’s product range that do have equity exposure, the stock picking element in the portfolio is small as we implement a top down investment approach across all asset classes. Most of our equity exposure in such funds is through futures on indices and CFDs.
As a result, H2O does not have a systematic procedure in place regarding ESG analysis and integration 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 company has considered integrating the ESG factors into the investment process for some of the portfolios.
At the broad H2O level, H2O applies a systematic exclusion based on regulatory requirements, client specific request, and wider Natixis group policies across all funds.
Finally, where the funds do 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
*“Sustainability risk” means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment according to SFDR.
**“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 UK Stewardship Code
- H2O Best Execution
- H2O Broker & Counterparty Selection
- H2O Modern Slavery Statement 2021
- H2O Remuneration policy
- H2O Conflicts of Interest Policy
- H2O Conflicts of Interest Inventory
- H2O Complaints procedure
- H2O Outsourced Service Providers Policy
- H2O Capital Requirements Directive - Pillar 3 Disclosure 2019
- H2O Proxy voting policy
- H2O Swing Pricing Policy FAQ
- MiFID II RTS 28 Report (2019)
- MiFID II RTS 28 Report (2018)
- MiFID II RTS 28 Report (2017)
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 Allegretto
- H2O EuroSovereign
- H2O EuroSovereign 3-5 years