H2O MultiReturns Fund

A dynamic global macro approach

Citywire Wealth Manager
17-18 October
Marc Maudhuit
Contents

1

2

H2O asset Management

H2O MultiReturns Fund

 History and Overview

 Objective and
positioning

 People...
H2O Asset Management

History & Overview
People
H2O Asset Management: History & Overview

• Specialized in global fixed income and global macro strategy management
• Key ...
H2O AM – People
H2O MultiReturns Fund

Objective & Positioning
Investment Process
H2O MultiReturns Fund – Objective & Positioning
 Deliver higher performance than a bond fund with similar volatility over...
Investment Process – top-down allocation

Directional

Long-term > 1 year

USD

Relative
Value

Medium term
6 mths – 1 yr
...
Investment Process – Making decisions
• Covering all market-driving factors
• Making clear-cut decisions
CEO
Bruno
Crastes...
Portfolio Monitoring Panel
In-house front office tool enabling:
• real-time monitoring of positions, volatility & constrai...
Performance Attribution*
Directional

Govies

Relative Value (Arbitrage)
Specific

Exposure to G4 govies
G4 Bond market al...
Correlation: at the heart of global macro management
Oct-08
MXNA0EN Index
MXNA0MT Index
MXNA0IN Index
MXNA0CD Index
MXNA0C...
The Correlation Risk Trap

13.

Source: Bloomberg
Correlations : the unwinding has just started
Correlation-only
(constant volatility)
Heat Map

Medium-term &
indirect inve...
H2O’s Long-Term Track Record
H2O Moderato

15.
Positioning of H2O Moderato, a comparable fund (albeit less
dynamic) for H2O MultiReturns Fund
Investment Horizon
1 year

...
Performance of H2O Moderato Strategy(31/07/01 – 30/08/13)

Annualised gross
performance : +5.5%
Annualised gross excess
re...
Conclusion
 H2O MultiReturns Fund:
 A dynamic global macro approach for all market conditions
 Outperform 1-month LIBOR...
Appendices
H2O MultiReturns Fund – Terms & Constraints
Fund details
Launch date

TBC – October 2013

Accounting currency

GBP

Invest...
About Natixis Global Asset Management

• Global, affiliate-based organisation
• Each affiliate manages their clients’ asse...
Investment Process – top-down allocation in practice

Currencies

Directional

USD vs:
EUR, JPY and CAD

(arbitrages)

Int...
Investment Process – top-down allocation in practice

Relative
Value
(arbitrages)

G4 duration

Govies

Directional

Regio...
Investment Process – top-down allocation in practice

Credit duration

Credit

Directional

Corporates
Relative
Value
(arb...
Investment Process – top-down allocation in practice

Relative
Value
(arbitrages)

Beta

Equities

Directional

Country &
...
History of H2O Moderato
H2O Moderato (I-share)
The absolute performance portfolio whose track record is analysed below is ...
Disclaimer

H2O is authorised and regulated by the Financial Conduct Authority (FCA) and is listed on the UK Financial
Ser...
NGAM UK Sales Contact
Derek Brander
Director, UK Wholesale
Cannon Bridge House
25 Dowgate Hill
London
EC4R 2YA
Tel: 020 34...
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H2 o multireturns presentation citywire wealth manager

  1. 1. H2O MultiReturns Fund A dynamic global macro approach Citywire Wealth Manager 17-18 October Marc Maudhuit
  2. 2. Contents 1 2 H2O asset Management H2O MultiReturns Fund  History and Overview  Objective and positioning  People 2.  Investment process 3 H2O’s long-term trackrecord  H2O Moderato 4 Appendix
  3. 3. H2O Asset Management History & Overview People
  4. 4. H2O Asset Management: History & Overview • Specialized in global fixed income and global macro strategy management • Key members of the team together since the early 1990s (managed £28 billion in global macro strategies in 2007)  20 years’ experience in global fixed income & 14 in global macro management • Boutique structure backed by one of Europe’s largest asset managers (NGAM)  Founded in 2010, with headquarters in London  £2.6 bn. / €3.0 bn. in assets under management as at 30 August 2013  84% in eight institutional mandates , 16% in eight mutual funds Source : H2O AM Source: H2O AM
  5. 5. H2O AM – People
  6. 6. H2O MultiReturns Fund Objective & Positioning Investment Process
  7. 7. H2O MultiReturns Fund – Objective & Positioning  Deliver higher performance than a bond fund with similar volatility over the same investment horizon  Outperform 1-month LIBOR by 4% p.a. (after fees) over 3 years  Volatility target of between 5% and 10% p.a. over 3 years Investment Horizon 1 year 5 years 3 years H2O MultiReturns Fund 4-5% Return Equity Funds Fixed Income Funds 0.5%* Money Market Funds 1% 5% 10% Volatility range * Average historic 1-month LIBOR rate since 2010. Source: global-rates.com as at 2 October 2013 > 15%
  8. 8. Investment Process – top-down allocation Directional Long-term > 1 year USD Relative Value Medium term 6 mths – 1 yr (arbitrages) Specific Inter-bloc & Intra-bloc arbitrages G4 Credit Duration Duration Region & yield curve arbitrages Sector arbitrages Medium to short term < 1 week Trading Beta Country & sector arbitrages A l l o c a t i o n
  9. 9. Investment Process – Making decisions • Covering all market-driving factors • Making clear-cut decisions CEO Bruno Crastes FLOWS SPECIFIC Jean-Baptiste Julio Roux Obeso CIO Vincent Chailley Gonzague Jeremy Legoff Touboul Loic Cadiou VALUATIONS CASH Juliette Pianko 9. Source: H2O AM TECHNICALS ECONOMICS ECONOMICS Timothée Consigny QUANT
  10. 10. Portfolio Monitoring Panel In-house front office tool enabling: • real-time monitoring of positions, volatility & constraints • real-time attribution of performance Menu H2O Patrimoine EUR Currency 46.0 NAV Bench. EONIA Calculate P-B Bonds T-B -206 Mod. Dur. 71 MD EUR CHF PLN GBP USD CAD AUD JPY KRW Total 6.99% Agg. Yield P Agg. Rating Currencies -20% -10% 0% 10% 20% ¥ KRW HUF PLN € SEK NOK CHF GBP $ MXN CAD Com AUD NZD ZAR EM RUB MYR CLP BRL EUR Bloc EUR SEK NOK CHF PLN CZK HUF GBP USD Bloc USD MXN HKD ZAR Commo Bloc CAD AUD NZD JPY Bloc JPY KRW EM Ccies BRL MYR CLP RUB IDR INR Liquidity Government bonds Corporate bonds Emerging mkts bonds Asset Backed Sec. Asset liquidity Market liquidity Quotation liquidity Source : H2O AM 4.29 1.36 0.51 1.07 1.35 2.81 1.47 P P-T -12.3% 61.1% -16.3% 64.4% 0.9% 4.8% 1.9% -7.8% -6.7% 5.0% 1.7% -0.2% -0.1% 2.1% -0.9% 11.8% -20.2% 1.9% -22.7% 9.9% 3.6% -1.0% -2.0% -0.5% 0.0% -13.9% -10.1% -0.1% -3.7% 0.1% -0.1% 1.6% -25.3% -26.1% 1.6% 0.8% 1.0% 0.0% 0.8% -0.1% -0.1% -0.2% -0.1% 1.0% -0.3% <8 4.29 Liquidity VaR 1.97% <2.3%  Bonds Currencies Credit Directional Relative Specific Agg. Duration Zone Yield curve Sovereign risk US Dollar Inter-Bloc Intra-Bloc Periph. Ccies Credit expo. Group alloc. Credit picking EM arbitrage Trading Diversification 0.56% 0.55% 0.70% 1.38% 0.72% 0.87% 36.5 10.8 29.4 51.8 38.0 33.5 50.3 3.1 33.4 15.6 11.5 45.7 5.0 168 < 1.5% < 1.5% < 1.5% 47% 24% 29%       €-sov. GR IT ES PT IE BE Total Carry 1-3 2 3-7 10 7-15 46 15+ 84 Total 141 Ex-Cdt 50 -14 -69 24 -48 20 0 68 113 24 20 49 24 20 -1 -12 -59 42 265 235 94 1-3 3-7 1 7-15 26 15+ 63 Total 91 Tréso ABS Futures Svgn Corpo EMD Ccy Equities Options Total Ccy EURUSD EURGBP 25 28 20 47 30 4.8% 4.1% 5 80 84 168 18.5% R-D 2 -29 47 14 26 Total -3 34 -96 201 50 126 58 51 360 61 421 Options % 9.6% 2 1 Carry -3 31 -67 154 36 100 58 51 δ τ γ ϖ % -2.6 27.8 -0.9 -6.0 -2.6% Bonds EUR USD Equities EUR USD 0.4 -7.7 0.0 5.1 10.6% Credit MD ABS/MBS AA A BBB HY EM Hard EM Local Total Relative  Adagio Direc. Team Pat. Moderato 2 0 6 0 4 4 8 9 16 26 Total 9 0 5 4 10 50 4 31 17 26 78 1-3 0 3-7 7 7-15 1-3 2 0 0 EMD MD Argentina Venezuela Colombia Korea Thaïland Russia Ukraine Turkey South Africa Morocco Others Total 3-7 0 7-15 0 15+ 0 0 2 9 13 3 16 USD 0 508 0 508 15+ Total MD 7 26 39 26 5 50 EUR 9 0 44 30 68 150 SWMD 65 399 43 508 Other SWMD Carry 11 20 31 0 44 36 30 68 508 100 11 669 167 % 17.9% 1.1% 1.7% 1.0% 2.5% 8.3% Max < 20%  < 42%  < 30%  32.4% Balance-Sheet Money market Balancesheet ABS Gvt Bonds Credit Bonds EM Bonds Equities Leverage 37.8% 62.2% 17.9% 28.0% 6.3% 8.3% 1.7% 1.09 Off-bal. 46.8% Futures 36.4% 4.2% Repos Reverse r Swaps 6.2% Options
  11. 11. Performance Attribution* Directional Govies Relative Value (Arbitrage) Specific Exposure to G4 govies G4 Bond market allocation G4 yield curve allocation Country allocation Total Govies Directional Currencies Relative Value (Arbitrage) Specific Directional Credit Relative Value (Arbitrage) Specific Directional Equities Relative Value (Arbitrage) Specific Trading * H2O Moderato fund Source: H2O AM 11. USD vs: EUR, JPY, CAD Inter-bloc currency allocations Intra-bloc currency allocations Emerging currency allocations Total Currencies Exposure to credit markets Credit market allocation Corporate bond market picking Emerging bond market picking Total Credit Equity market exposure Global equity market allocation Long-short sector Long/short equities Total equities Trading Total gross out-performance Fixed & performance fees Total net out-performance 2012 53 58 28 1113 1252 25 -61 92 1 57 312 54 120 79 565 2013 -43 14 31 316 319 94 15 101 43 254 -9 40 -1 -49 -19 ITD 136 151 122 613 1022 37 57 132 14 240 235 165 88 -144 344 126 34 170 9 -90 -42 3 79 1955 -235 1720 -124 -122 162 -50 180 984 -165 519 -156 -339 -65 -390 424 1639 -489 1150
  12. 12. Correlation: at the heart of global macro management Oct-08 MXNA0EN Index MXNA0MT Index MXNA0IN Index MXNA0CD Index MXNA0CS Index MXNA0HC Index MXNA0FN Index MXNA0IT Index MXNA0TC Index MXNA0UT Index MXEM0EN Index MXEM0MT Index MXEM0IN Index MXEM0CD Index MXEM0CS Index MXEM0HC Index MXEM0FN Index MXEM0IT Index MXEM0TC Index MXEM0UT Index EUR_1 F Index EUR_2 F Index EUR_3 F Index EUR_4 F Index GBP_1 F Index GBP_2 F Index GBP_3 F Index GBP_4 F Index USD_1 F Index USD_2 F Index USD_3 F Index USD_4 F Index FR F Index IT F Index ES F Index AA F Index BBB F Index ABS F Index HY F Index EMBI F Index XAU Curncy CL1 Comdty HG1 Comdty USDMXN Curncy USDJPY Curncy USDCAD Curncy USDEUR Curncy USDCHF Curncy USDGBP Curncy USDAUD Curncy Jun-12 MXNA0EN Index MXNA0MT Index MXNA0IN Index MXNA0CD Index MXNA0CS Index MXNA0HC Index MXNA0FN Index MXNA0IT Index MXNA0TC Index MXNA0UT Index MXEM0EN Index MXEM0MT Index MXEM0IN Index MXEM0CD Index MXEM0CS Index MXEM0HC Index MXEM0FN Index MXEM0IT Index MXEM0TC Index MXEM0UT Index EUR_1 F Index EUR_2 F Index EUR_3 F Index EUR_4 F Index GBP_1 F Index GBP_2 F Index GBP_3 F Index GBP_4 F Index USD_1 F Index USD_2 F Index USD_3 F Index USD_4 F Index FR F Index IT F Index ES F Index AA F Index BBB F Index ABS F Index HY F Index EMBI F Index XAU Curncy CL1 Comdty HG1 Comdty USDMXN Curncy USDJPY Curncy USDCAD Curncy USDEUR Curncy USDCHF Curncy USDGBP Curncy USDAUD Curncy MXNA0EN Index MXNA0MT Index MXNA0IN Index MXNA0CD Index MXNA0CS Index MXNA0HC Index MXNA0FN Index MXNA0IT Index MXNA0TC Index MXNA0UT Index MXEM0EN Index MXEM0MT Index MXEM0IN Index MXEM0CD Index MXEM0CS Index MXEM0HC Index MXEM0FN Index MXEM0IT Index MXEM0TC Index MXEM0UT Index EUR_1 F Index EUR_2 F Index EUR_3 F Index EUR_4 F Index GBP_1 F Index GBP_2 F Index GBP_3 F Index GBP_4 F Index USD_1 F Index USD_2 F Index USD_3 F Index USD_4 F Index FR F Index IT F Index ES F Index AA F Index BBB F Index ABS F Index HY F Index EMBI F Index XAU Curncy CL1 Comdty HG1 Comdty USDMXN Curncy USDJPY Curncy USDCAD Curncy USDEUR Curncy USDCHF Curncy USDGBP Curncy USDAUD Curncy EMU debt crisis – June 2012 12. MXNA0EN Index MXNA0MT Index MXNA0IN Index MXNA0CD Index MXNA0CS Index MXNA0HC Index MXNA0FN Index MXNA0IT Index MXNA0TC Index MXNA0UT Index MXEM0EN Index MXEM0MT Index MXEM0IN Index MXEM0CD Index MXEM0CS Index MXEM0HC Index MXEM0FN Index MXEM0IT Index MXEM0TC Index MXEM0UT Index EUR_1 F Index EUR_2 F Index EUR_3 F Index EUR_4 F Index GBP_1 F Index GBP_2 F Index GBP_3 F Index GBP_4 F Index USD_1 F Index USD_2 F Index USD_3 F Index USD_4 F Index FR F Index IT F Index ES F Index AA F Index BBB F Index ABS F Index HY F Index EMBI F Index XAU Curncy CL1 Comdty HG1 Comdty USDMXN Curncy USDJPY Curncy USDCAD Curncy USDEUR Curncy USDCHF Curncy USDGBP Curncy USDAUD Curncy Lehman Bros. – October 2008 • Global managers are highly sensitive to correlations • Correlations can boost, but also reduce their risk-adjusted return • Correlation changes can be used at a manager’s advantage • In 2003, and again in 2013, correlation changes provided a great source of performance Back to Normal - July 2013 Jul-13 MXNA0EN Index MXNA0MT Index MXNA0IN Index MXNA0CD Index MXNA0CS Index MXNA0HC Index MXNA0FN Index MXNA0IT Index MXNA0TC Index MXNA0UT Index MXEM0EN Index MXEM0MT Index MXEM0IN Index MXEM0CD Index MXEM0CS Index MXEM0HC Index MXEM0FN Index MXEM0IT Index MXEM0TC Index MXEM0UT Index EUR_1 F Index EUR_2 F Index EUR_3 F Index EUR_4 F Index GBP_1 F Index GBP_2 F Index GBP_3 F Index GBP_4 F Index USD_1 F Index USD_2 F Index USD_3 F Index USD_4 F Index FR F Index IT F Index ES F Index AA F Index BBB F Index ABS F Index HY F Index EMBI F Index XAU Curncy CL1 Comdty HG1 Comdty USDMXN Curncy USDJPY Curncy USDCAD Curncy USDEUR Curncy USDCHF Curncy USDGBP Curncy USDAUD Curncy MXNA0EN Index MXNA0MT Index MXNA0IN Index MXNA0CD Index MXNA0CS Index MXNA0HC Index MXNA0FN Index MXNA0IT Index MXNA0TC Index MXNA0UT Index MXEM0EN Index MXEM0MT Index MXEM0IN Index MXEM0CD Index MXEM0CS Index MXEM0HC Index MXEM0FN Index MXEM0IT Index MXEM0TC Index MXEM0UT Index EUR_1 F Index EUR_2 F Index EUR_3 F Index EUR_4 F Index GBP_1 F Index GBP_2 F Index GBP_3 F Index GBP_4 F Index USD_1 F Index USD_2 F Index USD_3 F Index USD_4 F Index FR F Index IT F Index ES F Index AA F Index BBB F Index ABS F Index HY F Index EMBI F Index XAU Curncy CL1 Comdty HG1 Comdty USDMXN Curncy USDJPY Curncy USDCAD Curncy USDEUR Curncy USDCHF Curncy USDGBP Curncy USDAUD Curncy Jul-01 MXNA0EN Index MXNA0MT Index MXNA0IN Index MXNA0CD Index MXNA0CS Index MXNA0HC Index MXNA0FN Index MXNA0IT Index MXNA0TC Index MXNA0UT Index MXEM0EN Index MXEM0MT Index MXEM0IN Index MXEM0CD Index MXEM0CS Index MXEM0HC Index MXEM0FN Index MXEM0IT Index MXEM0TC Index MXEM0UT Index EUR_1 F Index EUR_2 F Index EUR_3 F Index EUR_4 F Index GBP_1 F Index GBP_2 F Index GBP_3 F Index GBP_4 F Index USD_1 F Index USD_2 F Index USD_3 F Index USD_4 F Index FR F Index IT F Index ES F Index AA F Index BBB F Index ABS F Index HY F Index EMBI F Index XAU Curncy CL1 Comdty HG1 Comdty USDMXN Curncy USDJPY Curncy USDCAD Curncy USDEUR Curncy USDCHF Curncy USDGBP Curncy USDAUD Curncy MXNA0EN Index MXNA0MT Index MXNA0IN Index MXNA0CD Index MXNA0CS Index MXNA0HC Index MXNA0FN Index MXNA0IT Index MXNA0TC Index MXNA0UT Index MXEM0EN Index MXEM0MT Index MXEM0IN Index MXEM0CD Index MXEM0CS Index MXEM0HC Index MXEM0FN Index MXEM0IT Index MXEM0TC Index MXEM0UT Index EUR_1 F Index EUR_2 F Index EUR_3 F Index EUR_4 F Index GBP_1 F Index GBP_2 F Index GBP_3 F Index GBP_4 F Index USD_1 F Index USD_2 F Index USD_3 F Index USD_4 F Index FR F Index IT F Index ES F Index AA F Index BBB F Index ABS F Index HY F Index EMBI F Index XAU Curncy CL1 Comdty HG1 Comdty USDMXN Curncy USDJPY Curncy USDCAD Curncy USDEUR Curncy USDCHF Curncy USDGBP Curncy USDAUD Curncy Calm seas – July 2001 Source: Bloomberg & H2O AM
  13. 13. The Correlation Risk Trap 13. Source: Bloomberg
  14. 14. Correlations : the unwinding has just started Correlation-only (constant volatility) Heat Map Medium-term & indirect investors (3-year rolling correlation) Positions Bond allocation
  15. 15. H2O’s Long-Term Track Record H2O Moderato 15.
  16. 16. Positioning of H2O Moderato, a comparable fund (albeit less dynamic) for H2O MultiReturns Fund Investment Horizon 1 year 5 years 3 years H2O MultiReturns Fund 4-5% Equity Funds 2-3% Return H2O Moderato Fixed Income Funds Low Risk Fixed Income Funds 0.5%* Money Market Funds 1% 4% 5% 10% Volatility range 16. Source: H2O AM > 15%
  17. 17. Performance of H2O Moderato Strategy(31/07/01 – 30/08/13) Annualised gross performance : +5.5% Annualised gross excess return : +3.7% Average ex-post volatility (based on daily NAVs): 5.3% Strategy gross performance Original inception date 31/07/2001 – at Amundi. The Strategy was ‘unmanaged’ from 31/03/2010 – 22/08/2010, before being re-launched as H2O Moderato on 23/08/2010 17. Source: H2O AM & Bloomberg
  18. 18. Conclusion  H2O MultiReturns Fund:  A dynamic global macro approach for all market conditions  Outperform 1-month LIBOR by 4% p.a. (after fees) with volatility between 5-10% p.a. over an investment horizon of 3 years  Use a volatility budgeting process to build efficient portfolios 18.
  19. 19. Appendices
  20. 20. H2O MultiReturns Fund – Terms & Constraints Fund details Launch date TBC – October 2013 Accounting currency GBP Investment horizon 3 years Net performance objective* 4% p.a. in excess of 1-month GBP LIBOR Annual ex-post volatility 5-10% * Based on the I/A share class over the investment horizon, after fees and expenses Share class reference information Share class Ongoing charges Max. initial charge* Redemption charge Min. initial investment* I/A 0.80% 1.00% None £5,000,000 I/D 0.80% 1.00% None £5,000,000 N/A 1.00% 1.00% None £50,000 N/D 1.00% 1.00% None £50,000 I = Institutional share class N = No trail share class A = Accumulation share class D = Distribution share class * Initial charge and minimum initial investment waived when investing via a platform 20.
  21. 21. About Natixis Global Asset Management • Global, affiliate-based organisation • Each affiliate manages their clients’ assets independently • £516 billion in assets under management1  15th largest asset manager in the world2 • Diversified product line and client base • Over 3,000 employees worldwide with local representation in key markets 1 2 21. As at 30 June 2013 Source: Cerulli Quantitative Update : Global Markets 2013 – NGAM is ranked 15th in the world based on assets under management as at 31 December 2012. Source: H2O AM
  22. 22. Investment Process – top-down allocation in practice Currencies Directional USD vs: EUR, JPY and CAD (arbitrages) Inter-bloc & Intra-bloc arbitrages Specific Trading EUR JPY CAD Intra-bloc positions EUR, SEK, PLN, CHF, GBP, NOK JPY, KRW, SGD CAD, ZAR, AUD, NZD Asia Relative Value Inter-bloc positions Latin America Eastern Europe Other A l l o c a t i o n
  23. 23. Investment Process – top-down allocation in practice Relative Value (arbitrages) G4 duration Govies Directional Region & yield curve arbitrages Region allocation N. America Europe ex-EMU EMU Japan Yield curve 1-3 years 3-7 years 7-15 years 15-30 years Canada US Mexico Specific Trading UK Sweden Poland Hungary France Italy Portugal Spain etc Japan A l l o c a t i o n
  24. 24. Investment Process – top-down allocation in practice Credit duration Credit Directional Corporates Relative Value (arbitrages) Sector arbitrages High Grade Investment Grade High Yield Emerging soveriegn vs. corporate ABS / MBS Sovereign Instrument selection Specific Trading Corporate A l l o c a t i o n
  25. 25. Investment Process – top-down allocation in practice Relative Value (arbitrages) Beta Equities Directional Country & Sector Arbitrages Specific Region allocation N. America Sector Arbitrages Europe ex-EMU Financials Tech Indu Instrument selection Trading EMU Japan A l l o c a t i o n
  26. 26. History of H2O Moderato H2O Moderato (I-share) The absolute performance portfolio whose track record is analysed below is a UCITS III that has been managed by the same fund manager (namely Vincent Chailley) using the same investment process & management tools since its inception on May 28, 2003. The reference index has continuously remained the euro-zone daily money market rate (EONIA) compounded daily. The objective has also systematically consisted in outperforming EONIA by 2% p.a. net of fees over a minimum 3-year investment horizon with a targeted ex-post volatility of 2-4% p.a. at this horizon. The management universe includes government and corporate bonds, currencies, and equities. The fund has carried several names since its launch. When Vincent left Amundi on March 31, 2010, he stopped managing it for nearly five months (31/03/10 thru. 23/08/10) before resuming it under the name of “H2O Moderato”. During this short period, the performance calculation is based upon the assumption that the fund strictly tracked the Euro money market rate (EONIA) in gross & net terms. The sources are Bloomberg and the fund prospectuses, exclusively. The gross performance computations are based upon the fixed & performance fees as indicated in the fund prospectuses, and using a formula that best estimates the gross performance. Since inception, the fixed fee has stood at 0.60% p.a. and the performance fee at 30% above management objective from November 2002 until March 2010. It is 25% since 23/08/2010. There was no High Water Mark until August 2010.
  27. 27. Disclaimer H2O is authorised and regulated by the Financial Conduct Authority (FCA) and is listed on the UK Financial Services Register under firm reference number 529105. This document (and any attachments thereto) is confidential and for use only by the intended recipient. Access by others is unauthorized. Its content should not be relied upon and no liability or responsibility is accepted by us (H20 AM LLP) or associated companies), without subsequent written confirmation of its contents, signed by an authorized signatory. If you are not the intended recipient, please notify us promptly and delete all copies and note any discloser, copying, distribution or any action taken or omitted to be taken in reliance on the information it contains is prohibited and may be unlawful. This message is provided for information purposes and should not be construed as a solicitation or offer to buy or sell any securities or related financial instruments. Company Name & Business Office: H20 AM LLP, 2nd floor, 10 Old Burlington Street, London W1S 3AG. Company Number OC356207. 27.
  28. 28. NGAM UK Sales Contact Derek Brander Director, UK Wholesale Cannon Bridge House 25 Dowgate Hill London EC4R 2YA Tel: 020 3405 2181 Mobile: 07939 511 816 Email: derek.brander@ngam.natixis.com James Walkin UK Wholesale Sales Cannon Bridge House 25 Dowgate Hill London EC4R 2YA Tel: 020 3405 2156 Mobile: 07939 206 538 Email: James.Walkin@ngam.natixis.com 28.

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