(Bloomberg) -- H2O Asset Management says redemptions from its funds have “markedly subsided” after assets plunged by more than $6 billion over four days.
The company said clients pulled 450 million euros from its funds on Wednesday, bringing assets under management to 27 billion euros. That’s a big drop from the $37.6 billion in assets the firm had in April.
“Fund flows are returning to normal,” Chief Executive Officer Bruno Crastes said in a statement. “We would like to thank our investors for their continued commitment to H2O and to reiterate that 98% of assets held by our funds are perfectly liquid.”
H2O’s crisis started after the Financial Times showed the exposure of several of its funds to companies related to Lars Windhorst, a German financier with a history of troubled investments. Morningstar Inc., a research firm used by investors as a guide to buy or sell funds, subsequently suspended its bronze rating on the Allegro fund over concerns about the “liquidity and appropriateness” of some of its holdings.
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