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Natixis Plunges After Morningstar Suspends a Fund Rating

  • Concerns surround “liquidity and appropriateness” of bonds
  • Suspension adds to fund management woes after Woodford, GAM
Updated on

Natixis SA plunged after Morningstar Inc. cited concerns about the “liquidity and appropriateness” of some corporate-bond holdings in a fund owned by the French bank, the latest move to send tremors through Europe’s money management industry.

The U.S. research firm suspended its rating on H2O Asset Management’s Allegro fund, which managed 2.2 billion euros ($2.5 billion) at the end of May and had received Morningstar’s third-highest rating before being placed under review, according to a note on June 19. In September, the firm had flagged concerns about risk management at the fund.