The UK government has announced an exemption to withholding tax on the interest from private placements, spurring a £9bn (€11.4bn) commitment from insurers and asset managers.Six investment companies, backed by the Investment Management Association (IMA), have committed to providing finance to corporate private placements and infrastructure projects.In yesterday’s Autumn Statement – the chancellor George Osborne’s economic update to Parliament – it was announced that the government would provide an exemption from withholding tax on interest from qualifying private placements. “[This will] help unlock new finance for businesses and infrastructure projects,” the government said. A withholding tax is deducted from interest payments made to lenders of finance or on dividend payments.While details on which private placements would qualify for exemption will be released next week, it is understood third-party funds and pension fund investors would also be exempt.The six organisations funding the £9bn commitment include asset manager Allianz Global Investors (Allianz GI) and insurers Aviva, Friends Life, Prudential, Legal & General and Standard Life.The chancellor said the exemption signalled the potential beginnings of an enduring private-placement market in the UK.UK private-placement issuers accounted for around 21% of the global market at the end of October 2013, according to S&P.This saw around £7bn issued to a mixture of US and UK lenders.On the back of the announcement, Allianz GI said it was prepared to invest upward of £3bn in UK infrastructure debt over the next 3-5 years.This is in addition to the £600m the company is already on track to invest by the end of 2014.Deborah Zurkow, Allianz GI’s CIO for infrastructure debt, said: “Introducing a new tax exemption for private placements will act as an important step in helping unlock further international investment into UK infrastructure.”Insurer Aviva also announced an immediate commitment of £500m to UK infrastructure debt projects, in addition to £500m allocated last year.This will be done via Aviva Investors, the insurer’s asset management arm.Friends Life, which this week agreed to be taken over by Aviva in a deal worth more than £5bn, is also party to the agreement.It said the tax exemption would allow the company to continue its infrastructure and private-placement business, adding to the £1.5bn already invested.Daniel Godfrey, chief executive at the IMA, added: “This measure is a significant boost to the development of the UK private-placement market.”Yesterday’s Autumn Statement also announced a commitment to investigate the possibility of creating a long-term investment fund backed by tax revenues from shale-gas extraction in the North of England.The government said it would legislate in the next Parliament, from May 2015, for a fund to “capture the economic benefits of shale gas for future generations, and ensure revenues are invested in the long-term economic health of the North to create jobs and investment”.
Published on November 24, 2017 at 2:13 pm Contact: [email protected] | @jtbloss Facebook Twitter Google+ Syracuse (4-7, 2-5 Atlantic Coast) will play Boston College (6-5, 3-4) in the Carrier Dome on Saturday with a chance to earn its fifth win. Five wins, sometimes, can be enough to get a team to a bowl game. For SU, it certainly won’t.Here’s why:There are 128 teams in the FBS and 78 available slots in 39 bowl games. For the first time in four years, it appears enough of those slots will be filled by teams that have met the standard requirement of six wins and a .500 record needed to earn a bowl bid. Seventy teams have met that threshold already, including eight from the ACC.That leaves eight spots still available, with 18 teams boasting five wins heading into the weekend. There are four head-to-head matchups between those 18 teams, meaning at least four more have to emerge with a sixth win, bringing the total to a minimum of 74 bowl-eligible teams. And that’s just the minimum — more can and likely will win to make five-win teams irrelevant.But let’s say the minimum happens and we only have 74 teams automatically eligible. Five-win teams would be considered next — a group SU can join by beating BC on Saturday. These teams would be selected in order of their Academic Progress Rating, or APR, a metric the NCAA defines as such:AdvertisementThis is placeholder textEach student-athlete receiving athletically related financial aid earns one point for staying in school and one point for being academically eligible.A team’s total points are divided by points possible and then multiplied by 1,000 to equal the team’s Academic Progress Rate.In addition to a team’s current-year APR, its rolling four-year APR is also used to determine accountability.Here’s where SU’s hopes sink: of the five-win teams already sitting above SU, 11 have a better APR than SU’s 968. So unless some of them decline bowl invitations — a rare decision that also turns down both a financial and recruiting boost — SU will be watching bowl games from its collective couch for the fourth straight year. Comments