Bruno Crastes’ London-based boutique H2O Asset Management is set to apply a 5% subscription fee on new inflows in its H2O Multistrategies and H2O Vivace funds as from 30 June 2018.
The information was unveiled by Crastes, founder and CEO of H2O AM, in an interview to French trade information website H24 Finance, and has been confirmed to InvestmentEurope.
Crastes said to H24 Finance that the size of assets under management in the boutique’s funds have always been considered as a danger for the funds’ real performance, arguing that alpha generation is not linked to the organic appreciation of assets.
He also explained the H2O Multistrategies and H2O Vivace funds have increased strongly in size and tend to stand still, therefore penalising the latest investors in the funds.
“Our DNA is researching performance, not racing for assets. We have always looked at being aligned with our investors’ interests. Risk-pondered absolute return assets managed by H2O have now reached a cap that lead us to close our most dynamic funds (…) This soft-closing decision is logic. All entry fees levied on both funds will be reversed to protect existing investors,” Crastes pointed out.
All investors in the H2O Multistrategies and H2O Vivace funds are due to receive a shareholder notice by end-May 2018. The former had €1.19bn in assets under management as of end-March 2018 while the latter had AUM of €340.92m at the same date.
'Excellent growth opportunity'