Multi-asset  

Natixis affiliate launches absolute return fund

Natixis Global Asset Management (Ngam) has teamed up with H2O Asset Management to launch a multi-asset absolute return fund.

The H2O MultiReturns fund will be a UK-domiciled open-ended fund run by H2O’s investment team led by chief investment officer Vincent Chailley and Bruno Crastes.

The fund will aim to deliver annual returns of one-month Libor plus 4 per cent and a distribution yield of 3 per cent with a volatility target of roughly 5 per cent in three-year rolling periods.

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The launch is the third fund from one of Ngam’s affiliates, following the launch of two Loomis Sayles funds earlier this year.

Matthew Shafer, managing director of UK retail and global key accounts at Ngam, said the firm was looking to get the three funds on all major platforms by mid-2014 and said Ngam was committed to expanding its UK presence with further fund launches in 2014 and beyond.

He said: “We will become a significant player in the asset management industry in the UK.”

The H2O fund will take a top down global approach to invesment, taking relative value positions across asset classes. Mr Chailley said the fund would have a medium to long term value bias while trying to control volatility through the relative value positions.

He highlighted one position in the fund where the team has balanced out a basket of several European sovereign bonds with a short position on the euro, selling the currency relative to the dollar in order to hedge out some of the risk.

H2O was set up by Mr Chailley and Mr Crastes in July 2010, formed through a strategic partnership with Ngam. It has four similar multi-asset absolute return funds domiciled in France and the new launch will be managed in the same style.