UBS Has Buy Rating on Natixis Despite H2O Fund Exodus

The video discusses the market situation with a focus on Natixis and H2O. Lorraine Juarez from UBS provides insights into Natixis's valuation, suggesting that the current market scenario is overly pessimistic. The discussion covers H2O's strategies to manage outflows, including removing entry fees and adjusting private bond portfolios. Concerns about liquidity mismatches in investment funds are addressed, highlighting existing regulations and potential future actions by regulators.

What is Lorraine Juarez's perspective on the probability of an extreme scenario affecting Natixis?

• High probability

• Moderate probability

• No probability

• Low probability

Which action did H2O take to facilitate inflows?

• Increased entry fees

• Removed entry fees

• Introduced new bonds

• Closed the fund temporarily

What is one of the strategies H2O used to manage its private bond portfolio?

• Increased the number of private bonds

• Sold all private bonds

• Marked down to transactional value

• Transferred bonds to another fund

What is a concern related to liquidity in investment funds as discussed in the video?

• Mismatch between asset liquidity and investor expectations

• Funds are not regulated

• Investors can always withdraw money instantly

• Assets are always liquid

What is the regulatory limit for illiquid assets in a fund's portfolio?

• 5%

• 10%

• 15%

• 20%