Natixis’ multistore model challenged by H2O

Posted on Oct 13, 2020 at 10:05 a.m.

In the management world, Natixis has become synonymous with the multistore model. Natixis Investment Managers (NIM) now has 24 affiliates spread over both sides of the Atlantic. In total, the group managed more than 900 billion euros in assets at the end of June 2020. Natixis generally holds the majority of the capital of its stores, ensures the distribution of their products and supervises the risk management functions. Its subsidiaries, however, are independent in their management strategy, offering it a wide and diversified range of products. But the current difficulties of its H2O subsidiary – whose freezing of several funds at the request of the AMF ends this Tuesday – highlight the limits of this organization often praised by the group.

The strength of the multistore model lies in its diversification: “Depending on market trends, it is not always the same affiliate who will be successful”, recalls a Natixis spokesperson. In recent years, however, H2O’s contribution to Natixis’ results has grown without comparison with its share of the group’s outstandings, which today stands at 2.3%. Thanks to very high outperformance fees, H2O accounted for 10% of the underlying pre-tax profits of the bank in 2018 and 15% last year, says a close associate of the group.

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