Sunday 1st February 2015
NEWS TICKER FRIDAY, JANUARY 30TH: Morningstar has moved the Morningstar Analyst Rating™ of the Fidelity Japan fund to Neutral. The fund was previously Under Review due to a change in management. Prior to being placed Under Review, the fund was rated Neutral. Management of the fund has passed to Hiroyuki Ito - a proven Japanese equity manager, says Morningstar. Ito recently joined Fidelity from Goldman Sachs, where he successfully ran a Japanese equity fund which was positively rated by Morningstar. “At Fidelity, the manager is backed by a large and reasonably experienced analyst team, who enjoy excellent access to senior company management. While we value Mr Ito’s long experience, we are mindful that he may need some further time to establish effective working relationships with the large team of analysts and develop a suitable way of utilising this valuable resource,” says the Morningstar release - The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of administrative enforcement actions taken against banks and individuals in December. No administrative hearings are scheduled for February 2015. The FDIC issued a total of 53 orders and one notice. The orders included: five consent orders; 13 removal and prohibition orders; 11 section 19 orders; 15 civil money penalty; nine orders terminating consent orders and cease and desist orders; and one notice. More details are available on its website - Moody's Investors Service has completed a performance review of the UK non-conforming Residential Mortgage Backed Securities (RMBS) portfolio. The review shows that the performance of the portfolio has improved as a result of domestic recovery, increasing house prices and continued low interest-rates. Post-2009, the low interest rate environment has benefitted non-conforming borrowers, a market segment resilient to the moderate interest rate rise. Moody's also notes that UK non-conforming RMBS exposure to interest-only (IO) loans has recently diminished as the majority of such loans repaid or refinanced ahead of their maturity date - The London office of Deutsche Bank is being investigated by the Financial Conduct Authority (FCA), according to The Times newspaper. Allegedly, the bank has been placed under ‘enhanced supervision’ by the FCA amid concerns about governance and regulatory controls at the bank. The enhanced supervision order was taken out some months ago, says the report, however it has only just been made public - According to Reuters, London Stock Exchange Group will put Russell Investments on the block next month, after purchasing it last year. LSE reportedly wants $1.4bn - Legg Mason, Inc. has reported net income of $77m for Q3 fiscal 2014, compared with $4.9m in the previous quarter, and net income of $81.7m over the period. In the prior quarter, Legg Mason completed a debt refinancing that resulted in a $107.1m pre-tax charge. Adjusted income for Q3 fiscal was $113.1m compared to $40.6m in the previous quarter and $124.6m in Q3 fiscal. For the current quarter, operating revenues were $719.0m, up 2% from $703.9m in the prior quarter, and were relatively flat compared to $720.1m in Q3 fiscal. Operating expenses were $599.6m, up 5% from $573.5m in the prior quarter, and were relatively flat compared to $598.4min Q3 of fiscal 2014. Assets under management were $709.1bn as the end of December, up 4% from $679.5bn as of December 31, 2013. The Legg Mason board of directors says it has approved a new share repurchase authorisation for up to $1bn of common stock and declared a quarterly cash dividend on its common stock in the amount of $0.16 per share. - The EUR faces a couple of major releases today, says Clear Treasury LLP, and while the single currency has traded higher through the week, the prospect of €60bn per month in QE will likely keep the euro at a low ebb. The bigger picture hasn’t changed, yesterday’s run of German data was worse than expected with year on year inflation declining to -.5% (EU harmonised level). Despite the weak reading the EUR was unperturbed - The Singapore Exchange (SGX) is providing more information to companies and investors in a new comprehensive disclosure guide. Companies wanting clarity on specific principles and guidelines on corporate governance can look to the guide, which has been laid out in a question-and-answer format. SGX said listed companies are encouraged to include the new disclosure guide in their annual reports and comply with the 2012 Code of Corporate Governance, and will have to explain any deviations in their reporting collateral. - Cordea Savills on behalf of its European Commercial Fund has sold Camomile Court, 23 Camomile Street, London for £47.97mto a French pension fund, which has entrusted a real estate mandate to AXA Real Estate. The European Commercial Fund completed its initial investment phase in 2014 at total investment volume of more than €750m invested in 20 properties. Active Asset Management in order to secure a stable distribution of circa 5% a year. which has been achieved since inception of the fund is the main focus of the Fund Management now. Gerhard Lehner, head of portfolio management, Germany, at Cordea Savills says “With the sale of this property the fund is realising a value gain of more than 40%. This is the fruit of active Asset Management but does also anticipate future rental growth perspectives. For the reinvestment of the returned equity we have already identified suitable core office properties.” Meantime, Kiran Patel, chief investment officer at Cordea Savills adds: “The sale of Camomile Court adds to the £370m portfolio disposal early in the year. Together with a number of other asset sales, our total UK transaction activity since January stands at £450m. At this stage of the cycle, we believe there is merit in banking performance and taking advantage of some of the strong demand for assets in the market.” - US bourses closed higher last night thanks to much stronger Jobless Claims data (14yr low) which outweighed mixed earnings results. Overnight, Asian bourses taken positive lead from US, even as Bank of Japan data shows that inflation is still falling, consumption in shrinking and manufacturing output is just under expectations. According to Michael van Dulken at Accendo Markets, “Japan’s Nikkei [has been] helped by existing stimulus and weaker JPY. In Australia, the ASX higher as the AUD weakened following producer price inflation adding to expectations of an interest rate cut by the RBA, following other central banks recently reacting to low inflation. Chinese shares down again ahead of a manufacturing report.” - Natixis has just announced the closing of the debt financing for Seabras-1, a new subsea fiber optic cable system between the commercial and financial centers of Brazil and the United States. The global amount of debt at approximately $270m was provided on a fully-underwritten basis by Natixis -

Mukhtar Ablyazov associate imprisoned, $5bn civil litigation ongoing

Tuesday, 14 August 2012
Mukhtar Ablyazov associate imprisoned, $5bn civil litigation ongoing On August 10th a Cypriot court sentenced British citizen, Paul Kythreotis, to 2 months in prison for contempt of court. Mr. Kythreotis is an associate of Mukhtar Ablyazov, former chairman of Kazakstan’s BTA Bank, who is accused of misappropriating BTA funds totalling around $10bn during his time at the bank. http://www.ftseglobalmarkets.com/

On August 10th a Cypriot court sentenced British citizen, Paul Kythreotis, to 2 months in prison for contempt of court. Mr. Kythreotis is an associate of Mukhtar Ablyazov, former chairman of Kazakstan’s BTA Bank, who is accused of misappropriating BTA funds totalling around $10bn during his time at the bank.

Kythreotis was the subject of a July 2010 English High Court order instructing him to disclose details of his assets as part of a world-wide freezing order. He failed to disclose information concerning over $68m of his personal assets, and also refused to comply with the request to provide information on a further $295m of BTA Bank assets alleged to have been misappropriated by himself, Mr. Ablyazov and other associates. He also later admitted to supplying the English court with false information. He was susequently found guilty of contempt of court and sentenced to 21 months imprisonment.

Mr.Kytherios has avoided serving his sentence by refusing to return to the UK, however BTA bank were able to successfully pursue action against him through the Cypriot legal system, where he currently resides. Despite currently residing in a Cypriot prison the English judgement and corresponding 21-month sentence remain outstanding.



Pavel Prosyankin, BTA Bank managing director, welcomed the judgement and reaffirmed the bank’s commitment to seek redress from Mr.Ablyazov and his associates, whom they allege to have misappropriated billions of dollars of funds during his tenure as chairman.

BTA Bank has launched 9 civil cases through the English High Court as a part of its restructuring agreement with creditors to recover missing assets. The proceedings were filed against Ablyazov and his associates- including Kytherios- shortly after his 2009 arrival in London. Somewhat Ironically, Ablyazov had applied for UK asylum on arrival to the UK, citing politically motivated persecution as the cause of his flight from Kazakhstan. In the early stages of the litigation, the English courts froze his assets and held his passports to prevent him fleeing the jurisdiction. However, Ablyazov subsequently fled the UK after the High Court sentenced him to prison in February 2012 and is now in hiding- his location is currently unknown.

He also has a 22-month contempt of court sentence against his name, and Justice Teare, presiding, has taken the unusual step of issuing Mr. Ablyazov an "unless order"- meaning that he will not be able to defend BTA’s suits against him should he continue to fail to comply with the outstanding court order against him. He has appealed both judgements through his lawyers, with a verdict expected in October.

Sources close to the bank have stated, "The bank’s main priority is to protect the assets [that they believe Ablyazov has misappropriated] through all legal channels so they can be returned to the bank and creditors. Ablyazov’s assets were put into receivership to prevent them from being removed or hidden, but there has been evidence that assets were improperly dealt with since then, so the bank sought and won a committal action."

Related News

Related Articles

Related Blogs

Related Videos

  • Forces shaping the UK pension industry Thursday, 18 October 2012 Forces shaping the UK pension industry
    Rosalind Knowles, partner, Linklaters Pension Practice Group provides the first Keynote Speech at FTSE Global Markets’ Transition Management conference at Gibson…
  • ALFI speaks to George Bock, about FATCA Thursday, 29 March 2012 ALFI speaks to George Bock, about FATCA
    Alfi speaks to George Bock, Partner and Head of Tax Department at KPMG Luxembourg about the adoption of FATCA. Mr Bock…
  • Investing in Russia (Part 1) Friday, 01 July 2011 Investing in Russia (Part 1)
    Mattias Westman, founding partner, Prosperity Capital Management, discusses the key challenges and opportunities of investing in Russia during the Accessing…

Tweets by @DataLend

DataLend is a global securities finance market data provider covering 42,000+ unique securities globally with a total on-loan value of more than $1.8 trillion.

What do our tweets mean? See: http://bit.ly/18YlGjP