Tuesday 24th May 2016
News ticker: Tuesday, May 24th: Morningstar has upgraded the Schroder Japan Growth investment trust to a Morningstar Analyst Rating™ of Gold. The investment trust previously held a Silver rating. Peter Brunt, senior manager research analyst at Morningstar, comments: “The fund previously held a Silver rating. We continue to hold fund manager Andrew Rose, the supporting team and the structured process in high regard. Our concerns over the use of gearing have decreased over time, and we no longer see a reason to hold this closed-end vehicle at a differentiated rating to the identically managed Schroder Tokyo OEIC. The fund is therefore upgraded to Gold.” - The SYRIZA/ANEL coalition government secured late yesterday parliamentary approval of a key multi-bill incorporating the legislation required for the implementation of the remaining prior actions attached to the 1st programme review - Turkey’s Halk Bank has partnered with: Intellect Design Arena Limited to automate their Debt Management processes. Intellect’s Debt Management System will enable the Bank to manage its collections and recoveries more effectively and efficiently. The global lending portfolio is expected to be $38trn by 2019, growing at an average of7.9% CAGR. With increasing loans and high expected levels of delinquency, there is an increasing emphasis on strong debt management processes to devise powerful strategies for timely collection. Banks are spending to acquire customers and retain them on the one side, and on the other, they are also spending on collecting owed debt - Following what the asset manager describes as steady growth in the assets of the Threadneedle UK Absolute Alpha Fund, Columbia Threadneedle says it is currently monitoring flows in the fund with the potential to apply further containment measures. The Threadneedle UK Absolute Alpha Fund is managed by Mark Westwood and Chris Kinder, the fund takes long and short positions to deliver an absolute return to clients. As of end April 2016 the fund was £988m, having grown from £373m a year ago. Gary Collins, head of Wholesale, EMEA, at Columbia Threadneedle Investments says. “Our priority is always to protect the interests of existing investors and we have ceased marketing activity and new client pitches over the past year to manage inflows into the Threadneedle UK Absolute Alpha Fund. We are now monitoring new flows with the potential to apply further measures to limit demand if necessary to ensure the investment integrity of the fund is retained.” - Moody's has today withdrawn the A3 issuer rating of BP Finance PLC, a wholly-owned subsidiary of BP plc (rated A2, positive outlook) for what it says are business reasons - Dragon Capital, says it will list its flagship fund, Vietnam Enterprise Investments Limited (VEIL), on the main market of the London Stock Exchange sometime in July this year. Launched in 1995, VEIL is the largest and longest-running fund focused on Vietnam with a Net Asset Value (NA) of approximately $850m. The London listing is expected to create a more transparent and liquid market in VEIL's shares, widening potential ownership, attracting greater analyst coverage, increasing VEIL's profile and narrowing the discount to NAV at which the shares currently trade. Approximately half of VEIL's NAV is represented by stocks which are at their foreign ownership limits and cannot otherwise be accessed by foreign investors. The move is timely: Vietnam’s GDP rose 6.7% last year – Guaranty Trust Bank plc (GTBank) says it has redeemed the outstanding portion of its $500m eurobond notes due on May 19th. The bank issued a cash tender offer back in February to repurchase all the outstanding eurobond notes (priced at 7.5%), which it says was well received by investors. The issue was the first involving a Nigerian issuer and was secured by its subsidiary GTB Finance, set against an irrevocable bank guarantee. A statement from the bank issued yesterday, an aggregate principal amount of $126,586,000 of the securities were successfully tendered. The outstanding was redeemed from the bank’s cash reserves – Elsewhere in Nigeria, the Federal High Court has ordered former Minister of Finance, Dr. Ngozi Okonjo-Iweala and the federal government to give account of how NGN30trn that accrued to government during the last four years of the former President Goodluck Jonathan's administration was managed.‎ Presiding judge, Justice Ibrahim Buba said in a statement that the former minister of finance and the government should have made the requested information available about the money or given reasons why it could not be obliged within the stipulated period in conformity with the Freedom of Information Act.‎ ‎The judgement was released in a formal statement by civil rights group, Socio-Economic Rights and Accountability Project (SERAP)‎ through the office of its deputy director, Olukayode Majekodunmi, saying it embarked on the suit, tagged: FHC/L/CS/196/2015, ‎following the allegations by the former governor of Central Bank of Nigeria (CBN), Charles Soludo, that at least NGN30trn "has either been stolen or unaccounted for, or grossly mismanaged over the last few years under the watch of Dr Ngozi Okonjo-Iweala. At the same time, local press report that ex-President Jonathan Goodluck may have gone into exile in the Cote d’Ivoire. It seems that the Economic and Financial Crimes Commission (EFCC) is about to arrest him to face corruption charges, which would signal a total turnaround for the president whose administration was based on tackling graft in the country - US monetary policy continues to exert its influence on markets. Trading volumes are thin anyway, but clearly there is a risk off sentiment running through and this won’t change until the next FOMC meeting decision; it might be that the market has now factored in a rise in June despite mixed data emanating from the US. Right now, there are more pressing worries about the outcome of the upcoming G7 meeting, with expectations that the group will fall apart over the application of monetary policy. The outcome of the Ise-Shima G7 summit on May 26th and 27th will weigh on markets for most of this week as the US talks increasingly stridently about the ‘threat’ of competitive currency devaluation. What is a central bank with a rising currency such as the yen and declining exports (down 10.1% in April on a year on year basis) meant to do? The other worrying trend is the increasingly racist and toxic tone of the Leave camp in the Brexit campaign. How many insults can be directed at ‘foreigners’ in the UK without someone calling for restraint? - Asian markets had a mixed day. That inverse relationship between the yen and the Japanese stock market was still writ large today. The Nikkei 225 closed down 81.75 points, or 0.49 percent, at 16,654.60, retracing earlier losses of more than 1.5%, while the dollar-yen pair ultimately retreated to 109.75/$1.00. The Kospi rose 0.39% but the Hang Seng lost 0.38% over the day. The Shanghai Composite rose 0.66% while the Shenzhen Composite did better, rising 1.45%, across the water the ASX200 was down 0.6%. The Straits Times Index (STI) ended 3.11 points or 0.11% higher to 2766.93, taking the year-to-date performance to -4.02%. The top active stocks today were DBS, which gained 0.53%, Global Logistic, which declined 1.64%, SingTel, which gained 0.78%, OCBC Bank, which gained 0.36% and UOB, with a0.56% advance. The FTSE ST Mid Cap Index declined 0.08%, while the FTSE ST Small Cap Index rose0.14% - Today, traders will be watching PMI data from France, Germany, and headline eurozone.

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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."

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