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OPINION: Debate over the Governments plan for partial asset sales, and whether it has a mandate, having front-footed the issue at last years election, is ramping up. Rangitata MP Jo Goodhew puts the case for the policy. Over the past weeks some constituents have contacted me to discuss the Governments plan to introduce a mixed-ownership model for power companies and to extend the model further with Air New Zealand. Early in 2011 the Government announced it was considering this option and, through the year, made it plain that we would be seeking a mandate on election day to carry out this process as part of our plan to return to surplus in 2014-15. Between 2000 and 2009, total core crown expenditure jumped more than 80 per cent from $35billion to $64b. If we exclude earthquake costs, core crown expenses will increase by another $7.4b to a forecast $71.4b in the … Continue reading →

The government had only now come forward to discuss the Special Purpose Vehicle in Parliament because it was obliged to do so, since the setting up of this SPV was decided by the government alone. Opposition spokesman on finance Karmenu Vella said it appeared Minister Fenech didnt want to hear that this SPV had been set up to hide government debt, by transferring it to other instruments. In fact, many professionals were extremely sceptical about this SPV. According to the Maastricht Treaty, debt should be no more than 60 per cent of the GDP of a country. Notwithstanding, Maltas debt stands at 72 per cent of the GDP and the government continued to try to hide this problem. Malta had three debt pillars: that accrued directly by government, that by its entities and now by this SPV. Although last week Mr Fenech said it was not difficult for the government … Continue reading →

On the flip side, when the markets rally, the potential upside for these strategies is generally lower compared to traditional, long-only funds. The objective is to create a stable return profile with an emphasis on capital preservation, while producing attractive risk adjusted returns. We believe the most successful managers are those who are nimble and can dynamically adjust their net exposure based on prevailing market conditions. In addition, managers with unique sourcing can take advantage of market volatility by identifying alpha generating opportunities on both the long and short side. Although long/short strategies have historically focused on equities, the number of long/short credit funds — and the assets they manage — began to proliferate in the post-crisis era due to increased volatility within the bank loan and high yield bond markets. Distressed for Control Distressed for control opportunities arise when companies with sound market prospects suffer from poor management. Although … Continue reading →