New typhoon heads for Philippines



MANILA // Officials were preparing compulsory evacuation plans for tens of thousands of people in the Philippines as they watched Typhoon Parma track toward the country with winds gusting up to 210 kph. A decision on the evacuations would be made in the next day or so, the country's social welfare secretary, Esperanza Cabral, said. Parma could be more powerful than Ketsana, which left the Philippines' capital awash on Saturday and then cut a destructive path across Vietnam, Cambodia and Laos.

Nathaniel Cruz, the Philippines' chief weather forecaster, said of Parma: "We are dealing with a very strong typhoon. There is a big possibility that this typhoon will gather more strength. Let us all pray." Parma was last monitored 650km east of Borongan town on the eastern island of Samar at dawn. Mr Cruz said the typhoon was expected to slam into the north of the Philippines' Luzon island on Saturday afternoon but was already bringing rain to eastern provinces. Mr Cruz said Parma could strengthen into a "super typhoon", a designation given to storms with sustained winds exceeding 200 kph) It was carrying less rain than Ketsana, but the stronger winds could be very destructive, he said. However, the storm could still change course and miss the Philippines, Mr Cruz said.

Steady rain fell in Manila on Thursday after several days of clear skies, making conditions miserable for more than 2 million people whose homes were lined with slushy mud by the worst flooding in four decades. The idea of another storm brought fresh trauma to survivors. "I hope the typhoon will hit another place," said Glen Juban, whose family was washed from the roof of their shanty by floodwaters last Saturday.

Mr Juban, his wife and 13-year-old son survived but his 4-year-old daughter drowned. He said: "We've been hit so hard. The situation now is just so difficult and I don't know if we can take some more, another calamity." In Cambodia and central Vietnam, rescuers picked through the remains of houses that were blown down or buried in landslides, and villages remained cut off by mud-blocked roads and the worst floods in decades. A Vietnamese military helicopter dropped packets of instant noodles to cut-off villages in central Kon Tum province while authorities in Quang Ngai province used speed boats to rush noodles and bottled water to victims in two isolated mountain districts, provincial officials said.

In Cambodia, rain poured down on towns in Siem Reap province already awash in almost a metre of floodwaters. Schools, markets and other businesses were closed, the deputy police chief, Kan Sambath, said. Four large trees at the famed Angkor Thom temple complex were felled by the storm but did not cause any damage, he said. The Laotian state news agency KPL reported flooding and damage to roads, bridges and telecommunications in the country's southern provinces. It said homes and rice fields were damaged when the storm hit on Wednesday morning, but there was no information about casualties.

Officials in Vietnam raised the death toll there to 92 on Thursday. Cambodia's rose to 14. The storm was deadliest in the Philippines, with 277 killed. Typhoons occur year-round in the northeastern Pacific, usually blowing in from the east and tracking a path threatening South East Asia and southern China to Japan in the north. They are most common and usually most powerful from August to November. Ketsana came after Typhoon Morakot, which slammed into Taiwan in early August, causing mudslides and the worst flooding on the island in 50 years. Morakot also killed 22 people in the Philippines and eight in China.

* AP and AFP

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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