To address the problems associated with the current scarcity of liquidity in the marketplace following tougher regulations for financial institutions, H2O Asset Management announces the expansion of its product range with the launch of the H2O Barry funds, H2O Barry Active Value and H2O Barry Short, both Irish UCITS.
“The objective of the Barry funds is to offer investment solutions that leverage today’s challenging market profile and turn the constraints that impact traditional asset classes’ performances into investment opportunities. Frequent market shocks due to the massive drop in liquidity provided by banks are more limited due to lower systemic risk, and this pattern can offer attractive opportunities to flexible and responsive asset managers,” said Bruno Crastes, H2O’s CEO. The funds will seek to offer investors new sources of performance and diversification benefits.
H2O Barry Active Value aims to tap value from this new market context. When markets are calm, the fund invests in money market instruments. When a shock occurs that is not deemed to be the result of a fundamental change in market profile, Barry Active Value steps in with a short-term investment strategy.
H2O Barry Short is designed to take advantage of sharp rises in interest rates, while benefiting from higher yields than money market returns pending these rate increases.
H2O Asset Management intends to launch additional strategies in the Barry range in 2017 and 2018. The next, Barry Yield, is a strategy that will derive a significant share of its return from fees paid by banks that seek to gain a capital/liquidity relief benefit by entering into transactions that will decrease their RWAs and hence their cost of capital.
H2O Asset Management LLP – 10 Old Burlington Street, Westminster – London W1S 3 AG – United Kingdom – Registered in England and Wales with registered name H2O AM LLP and registration number OC 356207 – Authorized and regulated by the Financial Conduct Authority (“FCA”), and is entered on the FCA Register with the Registration Number 529105 and company number OC356207. H2O Asset Management is a 50.01 % subsidiary of Natixis Asset Management.
Natixis Asset Management – Asset management company regulated by AMF under n° GP 90-009 – Limited Liability Company with share capital of €50,434,604.76 – RCS Number Paris 329 450 738 – Registered Office: 21 quai d’Austerlitz, 75013 Paris.