Joseph Estrada, the former Philippine president, now occupies second place in public opinion surveys on tomorrow's president elections.
Joseph Estrada, the former Philippine president, now occupies second place in public opinion surveys on tomorrow's president elections.

Polls predict landslide for Aquino



MANILA // If opinion polls are anything to go by, the senator Benigno "Noynoy" Aquino should win tomorrow's election and become the first Liberal Party president of the Philippines since 1961.

The son of the late and revered president Corazon "Cory" Aquino and the martyred senator and nemesis of the dictator Marcos, Benigno "Ninoy" Aquino Jr, he has led the opinion polls since campaigning started back in February, winning popularity for his image as a politician untainted by corruption. The latest poll by Business World-Social Weather Stations on Friday put the 50-year-old Mr Aquino ahead of his nearest rivals - the self-made billionaire businessman Manuel "Manny" Villar, 60, and the former disgraced president, Joseph "Erap" Estrada, 72 - by more than 20 percentage points.

For the first time, Mr Villar has slipped into third place with 19 per cent and Mr Estrada in second place with 20 per cent. The ruling party's candidate, the former defence secretary Gilbert "Gibo" Teodoro, trails well behind with just nine per cent while the remaining five candidates are also on single figures. The main thrust of this election has not been policy, but change. Most Filipinos have had enough of the president Gloria Macapagal Arroyo, whose father Diosdado Macapagal was the last Liberal president, and want change. Mr Aquino is seen as a man relatively unsullied by dirty politics, but the fact that he is the son of a well-loved political couple has been a major advantage for him.

"It is not a question of track record versus achievement. It is about integrity or at least the public's perception of it," said Marvin Tort, the director of the Manila-based political and economic consultancy Think Tank. "Elections in this country are almost always about personality and not policies. In Mr Aquino's case, he is perceived by many as a man of integrity." Mr Villar is an individual who rose out of poverty to build a multimillion-dollar property development company. He has been a congressman and senator and now he is hungry for the country's top job, spending up to 6 billion pesos (Dh480 million) of his own money on his election campaign, some say. But he has also been linked to a corruption scandal that has soured his image in the eyes of many Filipinos.

The dark horse in the race is Mr Estrada, who still commands widespread support among the poor. Business leaders, however, quietly shudder at the thought of Mr Estrada returning as president. In the 30 months he was president, before being removed in 2001 in what he constantly describes as a coup by the Church, elites and military, he was known for having two cabinets - one comprising some of the best brains in the country, and his so-called "midnight cabinet" of drinking buddies, who would congregate at the presidential palace in Manila for all-night drinking sessions.

"If Estrada should win, I doubt you would see a return to the old ways," said Mr Tort. "Perhaps he has learnt his lesson and might be thinking more about his legacy given his advanced age. A sad possibility is that he may also be mulling payback for those who arrested and tried him for plunder." Mr Estrada was sentenced to life in prison in 2007 on charges of plunder but Mrs Arroyo pardoned him shortly after.

As for Mr Aquino, in his nine years in Congress and since he was elected to the Senate in 2007, he has done very little of note. It could well be the so-called "Cory factor" that will win him the election. In a recent interview with The National, Mr Aquino said he had never contemplated following in his mother's footsteps. But her death in August last year changed that and the mild-mannered senator and former congressman suddenly found himself swept along by a sea of emotion by Filipinos wanting an "honest" and "clean" president.

His father, Ninoy, who was killed at Manila airport in 1983, is held by many to have been the best president the country never had. Jailed by the dictator Ferdinand Marcos, he was the country's leading opposition figure and single biggest threat to Marcos. In many ways, the younger Aquino's sudden thrust into the political limelight is similar to his mother's political awakening after her husband's assassination. Mrs Aquino was the housewife, mother and devout Catholic who, reluctantly, said yes to picking up where Ninoy left off. Three years later, she led a non-violent revolution that ended Marcos' 21 years of rule.

Ramon Casiple, the executive director of the Institute for Political and Electoral Reform, said: "He [Mr Aquino] claims the legacy of his parents' anti-dictatorship, pro-people power and pro-democracy stands and stresses anti-corruption, as well as the honesty and clean government of his mother's term." Mr Aquino is seen as the antithesis of Mrs Arroyo and those who support him believe he can strengthen democratic institutions that Mrs Arroyo allowed to weaken during her nine years as president.

"If surveys are to be the guide, it seems that there is a strong preference among voters for a leader whom they can trust [over] one who has the demonstrated management skills," Mr Casiple said. "That is, they will go for the ethical leadership." foreign.desk@thenational.ae

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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.”

Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
  • Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
  • Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
 
 
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