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![]() IFD Kapital Group Headquarters, Krasnopresnenskaya Embankment 6, Moscow | |
Formerly | IFD Capital Financial Group |
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Industry | financial services holding company |
Founded | 2003 |
Headquarters | Moscow , Russia |
Key people | Vagit Alekperov (CEO) Leonid Fedun (Deputy Chief Executive) |
Services | investment banking brokerage services |
Divisions |
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Website | ifdk |
IFD Kapital Group, earlier also called IFD Capital Financial Group, is a Russian financial holding company founded in 2003 from LUKoil non-oil assets, based in Moscow. With assets exceeding US$14.7 billion and total shareholders’ funds of 7.5 billion US$ as of 2012, it ranked among the top-100 largest Russian companies by volume of proceeds, according to ratings of Expert-400[1] and finance500.com. As of 2013, it had a triple A rating with a Russian rating agency.[2]
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Transcription
Voiceover: Easily the most quoted number people give you when they're publicizing information about their credit cards is the APR. I think you might guess or you might already know that it stands for annual percentage rate. What I want to do in this video is to understand a little bit more detail in what they actually mean by the annual percentage rate and do a little bit math to get the real or the mathematically or the effective annual percentage rate. I was actually just browsing the web and I saw some credit card that had an annual percentage rate of 22.9% annual percentage rate, but then right next to it, they say that we have 0.06274% daily periodic rate, which, to me, this right here tells me that they compound the interest on your credit card balance on a daily basis and this is the amount that they compound. Where do they get these numbers from? If you just take .06274 and multiply by 365 days in a year, you should get this 22.9. Let's see if we get that. Of course this is percentage, so this is a percentage here and this is a percent here. Let me get out my trusty calculator and see if that is what they get. If I take .06274 - Remember, this is a percent, but I'll just ignore the percent sign, so as a decimal, I would actually add two more zeros here, but .06274 x 365 is equal to, right on the money, 22.9%. You say, "Hey, Sal, what's wrong with that? "They're charging me .06274% per day, "they're going to do that for 365 days a year, "so that gives me 22.9%." My reply to you is that they're compounding on a daily basis. They're compounding this number on a daily basis, so if you were to give them $100 and if you didn't have to pay some type of a minimum balance and you just let that $100 ride for a year, you wouldn't just owe them $122.9. They're compounding this much every day, so if I were to write this as a decimal ... Let me just write that as a decimal. 0.06274%. As a decimal this is the same thing as 0.0006274. These are the same thing, right? 1% is .01, so .06% is .0006 as a decimal. This is how much they're charging every day. If you watch the compounding interest video, you know that if you wanted to figure out how much total interest you would be paying over a total year, you would take this number, add it to 1, so we have 1., this thing over here, .0006274. Instead of just taking this and multiplying it by 365, you take this number and you take it to the 365th power. You multiply it by itself 365 times. That's because if I have $1 in my balance, on day 2, I'm going to have to pay this much x $1. 1.0006274 x $1. On day 2, I'm going to have to pay this much x this number again x $1. Let me write that down. On day 1, maybe I have $1 that I owe them. On day 2, it'll be $1 x this thing, 1.0006274. On day 3, I'm going to have to pay 1.00 - Actually I forgot a 0. 06274 x this whole thing. On day 3, it'll be $1, which is the initial amount I borrowed, x 1.000, this number, 6274, that's just that there and then I'm going to have to pay that much interest on this whole thing again. I'm compounding 1.0006274. As you can see, we've kept the balance for two days. I'm raising this to the second power, by multiplying it by itself. I'm squaring it. If I keep that balance for 365 days, I have to raise it to the 365th power and this is counting any kind of extra penalties or fees, so let's figure out - This right here, this number, whatever it is, this is - Once I get this and I subtract 1 from it, that is the mathematically true, that is the effective annual percentage rate. Let's figure out what that is. If I take 1.0006274 and I raise it to the 365 power, I get 1.257. If I were to compound this much interest, .06% for 365 days, at the end of a year or 365 days, I would owe 1.257 x my original principle amount. This right here is equal to 1.257. I would owe 1.257 x my original principle amount, or the effective interest rate. Do it in purple. The effective APR, annual percentage rate, or the mathematically correct annual percentage rate here is 25.7%. You might say, "Hey, Sal, that's still not too far off "from the reported APR, where they just take "this number and multiply by 365, instead of taking "this number and taking it to the 365 power." You're saying, "Hey, this is roughly 23%, "this is roughly 26%, it's only a 3% difference." If you look at that compounding interest video, even the most basic one that I put out there, you'll see that every percentage point really, really, really matters, especially if you're going to carry these balances for a long period of time. Be very careful. In general, you shouldn't carry any balances on your credit cards, because these are very high interest rates and you'll end up just paying interest on purchases you made many, many years ago and you've long ago lost all of the joy of that purchase. I encourage you to not even keep balances, but if you do keep any balances, pay very close attention to this. That 22.9% APR is still probably not the full effective interest rate, which might be closer to 26% in this example. That's before they even count the penalties and the other types of fees that they might throw on top of everything.
History
The origin of IFD Kapital Group are with the Russian oil giant LUKoil. In the beginning of 2003, LUKoil split off 3 billion US$ of non-oil or non-core assets, which started IFD Kapital Group: LUKoil's insurance business and pension fund LUKoil-Garant. LUKoil's deputy chief executive Leonid Fedun became IFD Kapital's first chair. In April 2003, IFD Kapital Group agreed to buy brokerage LUKoil-Reserve-Invest, and the sale was completed in January 2004.[3] In the spring of 2003, IFD Kapital Group also bought JSC Capital Investment Group, which had started within LUKOIL Reserve-Invest about 7 years earlier.[4] In June 2004 IFD Kapital group bought LUKoil's majority stake in the mid-sized bank Petrocommerce, Open joint-stock company (OJSC), which had been founded in 1992, and it sold it in 2013 to Otkritie Financial Corp.[5]
By 2004, IDF Kapital Group was owned by a closed-end fund called Strategic Investments, with unknown owners, managed by 'Management-Center', and Igor Sherkunov as chairman of the board of directors, a long term LUKoil insurance company man and member of LUKoil's board of directors.[6]
In May 2006, the two main owners of IFD Kapital were reported to be Lukoil executives: CEO Vagit Alekperov and deputy chief executive Leonid Fedun.[7]
Services
IFD Kapital Group operates in investment banking and brokerage services, focusing on pension reserves and insurance reserves. The company manages non-state pension funds, closed-end real estate mutual funds, and various insurance products, including mandatory medical insurance.[8] It manages 36 non-governmental pension funds (NPFs), including such major Russian funds as Blagosotoyanie a mandatory pension insurance in 80 regions of Russia, serving 2.9 million customers, assets of 6.5 billion euros,[9] Gazfond, LUKOIL Garant, Norilsk Nickel, Sberbank, the government-owned Electric Power Industry fund, Promagrofond, KIT Finance Investment Bank, and others.[2]
Organization
IFD Kapital has four subdivisions: asset management business, Petrocommerce banking group, media and information technology and real estate. The corporate center of the Group coordinating the subdivisions is the "IFD Kapital” Integrated Private Investment Fund (IPIF).
Asset management business
The holding company 'Group Kapital Asset Management' CJSC was the second largest Russian asset management firm with over 230 billion rubles of assets in management,as of September 30, 2012 per company website.[10] It comprises three companies, namely Kapital Asset Management Company LLC, Kapital Asset Management joint stock company (JSC) and Management Company Kapital Mutual Funds LLC. The holding is headed by Sergei Mikhailov, a member of the Board of Directors with numerous connections. The holding totaled assets of RUR 132.7 billion as of March 31, 2013.[2]
Petrocommerce banking group
Petrocommerce OJSC, was established in 1992, and grew into the "Bank Petrocommerce Group" by incorporating Commercial Bank for Industry and Construction "Stavropolye" (Stavropolpromstroybank) Joint Stock Investment Company (JSC), Komi regional bank “Ukhtabank” (JSC Komiregionbank “Ukhtabank”) JSC, and “Bank Petrocommerce-Ukraine” public joint stock company, per Petrocommerce website.[11] Moody's Investors Service rated Petrocommerce at Ba3/D-according to its international scale, and at Aa3.ruaccording to the national rating scale. Standard & Poor’s rated it B+/B according to international scale, and ruA according to national scale. The Russian rating agency 'Expert RA' gave it A+ and 'Rus-Rating' gave it BBB− according to international scale and AA− according to national scale, per IFD Kapital website. Petrocommerce was among the 20 biggest banks of the Russian Federation in 2007 [12] and among the top 30 banks as of 2014.[11] Investment bank Otkritie, Russia's second largest financial group by assets, bought Petrocommerce as of 31 October 2013.[13] The new CEO since November 2013 is Vladimir Rykunov, former financial director and member of the executive board of Nomos bank.[14]
Music broadcasting
The 'Russian Media Group' is a holding company of numerous Russian music radio stations (Русское Радио, Monte Carlo, Хит FM, DFM, радио MAXIMUM, TV channel RU.TV) being one of the largest Russian music media holdings. It also includes a defunct (as at May 2021) entertainment internet portal, www.muz.ru designed "for on-demand download of legal digital music and video".[15]
Real estate
The real estate arm owns 3 Class A office buildings in Moscow, a sports center in the Sokolniki area, two hotel complexes in Russia and Ukraine, besides constructing a new stadium for the “Spartak” Football Club Moscow.
Board of directors
As of 2014, Leonid Fedun is chairman of the board of directors. The four members are Aleksander Zhirkov, Sergey Mikhailov, Olga Plaksina and Vsevolod Gordyi, with Elena Ilynskaya as secretary of the board of directors per the company website[16]
In June 2017, the company was sanctioned by the United States for taking ownership of the Riviera Sunrise hotel complex in Crimea.[17]
References
- ^ "Credit and Financial Stability Ratings". Moscow: EXPERT RA. Retrieved 10 April 2014.
- ^ a b c "NRA has affirmed reliability rating "AAA" of the Group of Asset Management Companies KAPITAL". Press Release. National Rating Agency, Ra-national.com. 22 July 2013. Retrieved 10 April 2014.
- ^ Eduard Gismatullin (13 August 2004). "LUKoil Puts Assets in Financial Group". The Moscow Times. Retrieved 11 April 2014.
- ^ "At the start of a long road" (Interview with Igor Sherkunov). Oil of Russia, No. 2, 2004. 2004. Retrieved 10 April 2014.
- ^ "Russia's Otkritie Financial Corp buys Petrocommerce bank". Reuters. 30 October 2013. Retrieved 11 April 2014.
- ^ "Building a Russian financial giant" (Profile). The Russia Journal. May 2004. Retrieved 11 April 2014.
- ^ Teagarden, Michael (1 March 2006). "Lukoil Executives Alekperov and Fedun Own Russia's IFD Kapital". Bloomberg News. Archived from the original on April 13, 2014. Retrieved 11 April 2014.
- ^ "Company Overview of IFD Kapital Group". Archived from the original on April 10, 2014. Retrieved 10 April 2014.
- ^ "About Blagosostoyanie: www.npfb.ru". Company website. Absolut Bank. Retrieved 10 April 2014.
- ^ "Asset management". IFD Kapital Group. Retrieved 11 April 2014.
- ^ a b "Petrocommerce Banking". official website. IFD Kapital Group. 2014. Retrieved 11 April 2014.
- ^ ""Petrocommerce" Banking Group". IDF Kapital Group. 2007. Retrieved 11 April 2014.
- ^ "Otkritie ties up with IFD Kapital, buys Petrocommerce". Zephyr. 31 October 2013. Retrieved 11 April 2014.
- ^ "Executive Profile Vladimir Rykunov". Bloomberg News. Archived from the original on April 12, 2014. Retrieved 12 April 2014.
- ^ "Banking Group". IDF Kapital Group. 2007. Retrieved 11 April 2014.
- ^ "About us: Board of Directors". official website. IFD Kapital Group. Retrieved 11 April 2014.
- ^ "Treasury Designates Individuals and Entities Involved in the Ongoing Conflict in Ukraine". United States Department of the Treasury. 20 June 2017.
External links
- Official website (archive)
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