BlueBay, Blackrock, Ashmore and UBS exposed to Evergrande -Morningstar | Canada News Media
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BlueBay, Blackrock, Ashmore and UBS exposed to Evergrande -Morningstar

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BlackRock Inc and Royal Bank of Canada‘s BlueBay Asset Management are among asset managers exposed to embattled developer China Evergrande Group, while TCW and HSBC funds have closed positions, researcher Morningstar said.

In an analysis Morningstar published on Sept. 24, Morningstar also said UBS Group AG and London-based Ashmore Group PLC funds retained significant holdings in Evergrande debt, based on data current at August-end. Funds run by Fidelity and SinoPac held sizeable investments, it said.

BlueBay told Reuters its holding was “very limited” and that it has been reducing it since August-end. None of the other asset managers provided comment.

Evergrande owes $305 billion and has run short of cash. Some investors worry a corporate collapse could pose systemic risks to China’s financial system and reverberate around the world.

Last week, Evergrande failed to pay interest on a $2 billion dollar bond maturing in March. It will default if it makes no payment within a 30-day grace period.

HSBC Holdings PLC’s asset management division and fund manager TCW exited Evergrande positions in September and August, Morningstar said. HSBC declined to comment and TCW had no immediate response.

Credit Suisse Group AG, not mentioned by Morningstar, sold its entire exposure to Evergrande debt last year, the Financial Times reported on Friday.

Fellow Swiss bank UBS has Evergrande debt exposure totalling about $283 million across multiple portfolios, Morningstar said. Ashmore’s runs to $146 million. Both declined to comment.

Morningstar had earlier noted BlackRock’s exposure had recently increased. In its Friday analysis, it said BlueBay had “gradually started adding”.

“The investment team proactively reduced exposure to the company earlier this year,” BlueBay said in a statement.

Morningstar did not give a dollar total for BlueBay exposure, though the researcher listed two BlueBay funds in its top exposure lists with exposure of about $8 million in July, along with an index-tracking fund managed by BlackRock which it said had about $1.5 million in exposure in September.

Blackrock declined to comment.

Evergrande’s dollar bonds have been tumbling since May when the group was late in paying suppliers. A $1 billion dollar bond with a coupon payment due next week last traded at the distressed level of 27.5 cents on the dollar.

Of the other fund managers mentioned by Morningstar, only T Rowe Price Group Inc – which closed its Evergrande position last year – had immediate comment when contacted by Reuters.

“A period of elevated high-yield default rates may lead to dollar market access being shut for some weaker issuers,” Sheldon Chan, portfolio manager of T. Rowe Price’s Asia credit bond strategy, said in an emailed response.

“This may keep volatility elevated … and present attractive entry points to add exposure to the sector.”

 

(Reporting by Tom Westbrook; Editing by Susan Fenton and Christopher Cushing)

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RCMP arrest second suspect in deadly shooting east of Calgary

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EDMONTON – RCMP say a second suspect has been arrested in the killing of an Alberta county worker.

Mounties say 28-year-old Elijah Strawberry was taken into custody Friday at a house on O’Chiese First Nation.

Colin Hough, a worker with Rocky View County, was shot and killed while on the job on a rural road east of Calgary on Aug. 6.

Another man who worked for Fortis Alberta was shot and wounded, and RCMP said the suspects fled in a Rocky View County work truck.

Police later arrested Arthur Wayne Penner, 35, and charged him with first-degree murder and attempted murder, and a warrant was issued for Strawberry’s arrest.

RCMP also said there was a $10,000 reward for information leading to the arrest of Strawberry, describing him as armed and dangerous.

Chief Supt. Roberta McKale, told a news conference in Edmonton that officers had received tips and information over the last few weeks.

“I don’t know of many members that when were stopped, fuelling up our vehicles, we weren’t keeping an eye out, looking for him,” she said.

But officers had been investigating other cases when they found Strawberry.

“Our investigators were in O’Chiese First Nation at a residence on another matter and the major crimes unit was there working another file and ended up locating him hiding in the residence,” McKale said.

While an investigation is still underway, RCMP say they’re confident both suspects in the case are in police custody.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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26-year-old son is accused of his father’s murder on B.C.’s Sunshine Coast

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RICHMOND, B.C. – The Integrated Homicide Investigation Team says the 26-year-old son of a man found dead on British Columbia’s Sunshine Coast has been charged with his murder.

Police say 58-year-old Henry Doyle was found badly injured on a forest service road in Egmont last September and died of his injuries.

The homicide team took over when the BC Coroners Service said the man’s death was suspicious.

It says in a statement that the BC Prosecution Service has approved one count of first-degree murder against the man’s son, Jackson Doyle.

Police say the accused will remain in custody until at least his next court appearance.

The homicide team says investigators remained committed to solving the case with the help of the community of Egmont, the RCMP on the Sunshine Coast and in Richmond, and the Vancouver Police Department.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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Metro Vancouver’s HandyDART strike continues after talks break with no deal

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, have broken off without an agreement following 15 hours of talks.

Joe McCann, president of Amalgamated Transit Union Local 1724, says they stayed at the bargaining table with help from a mediator until 2 a.m. Friday and made “some progress.”

However, he says the union negotiators didn’t get an offer that they could recommend to the membership.

McCann says that in some ways they are close to an agreement, but in other areas they are “miles apart.”

About 600 employees of the door-to-door transit service for people who can’t navigate the conventional transit system have been on strike since last week, pausing service for all but essential medical trips.

McCann asks HandyDART users to be “patient,” since they are trying to get not only a fair contract for workers but also a better service for customers.

He says it’s unclear when the talks will resume, but he hopes next week at the latest.

The employer, Transdev, didn’t reply to an interview request before publication.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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