H2O AM makes further cuts to side pocket fund valuations
In February, the asset manager suspended valuation for its segregated funds, following an initial reimbursement phase the month before.
In a statement earlier this week (16 October), H2O said it had made new valuations to its side-pocketed funds, with some being revised down by roughly 70% of the value they were ascribed at the end of last year.
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«These reductions vary depending on the financial instruments held within the respective [segregated funds],» the firm said.
In February, the asset manager suspended valuations for its segregated funds, following an initial reimbursement phase the month before. This saw €250m paid out to investors, though this was only a fraction of the €1.6bn it owed.
However, last month the asset manager said it would be publishing new estimated valuations, which declined due to the absence of «significant additional reimbursement» of existing holdings.
«We continue to work closely with our legal and financial advisers to achieve the full disposal of the assets making up the SP funds and, consequently, their liquidation,» the firm said last month.
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Seven of the firm's funds were suspended in August 2020, with its illiquid holdings side-pocketed, after uncertainties around valuations and illiquid assets led investors to redeem their holdings en masse.
The asset manager will inform investors of any significant developments by mid-November, it added.
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