Collapsed houses are seen after an earthquake hits the island of Ischia, off the coast of Naples. Ciro De Luca / Reuters

Earthquake kills at least two on Italian holiday island, tourists flee



An earthquake hit the tourist-packed Italian holiday island of Ischia on Monday night, collapsing buildings, killing at least two people and injuring dozens, officials said.

Residents and tourists on the island off the coast of Naples ran out on to the narrow streets from homes and hotels. Fearing aftershocks, many decided to leave the island early.

Television images showed about six buildings in the town of Casamicciola including a church had collapsed in the quake, which hit at 8.57pm local time.

The quake hit a few days before the first anniversary of a major quake that killed nearly 300 people in central Italy, most of them in the town of Amatrice.

Italy's National Institute of Geophysics and Vulcanology put the magnitude of Monday's quake at 4.0, revising it up from an initial 3.6, but both the US Geological Survey and the European quake agency estimated the magnitude at 4.3.

The director of the island's hospital said two people were killed and about 40 injured. One of victims was killed when she was hit by falling masonry from the church of Santa Maria del Suffragio, the Civil Protection Department in Rome said.

Most of the damage was in the high part of the volcanic island. Hotels and residences on the coast did not appear to suffer serious damage.

Helicopters and a ferry boat brought in more rescue workers from the mainland.

Three extra ferries were provided during the night for about 1,000 residents and tourists who wanted to leave. As daylight broke, dozens of people went to the island's four ports, having decided to end their vacations early.

A few people were pulled out alive from the rubble, including a seven-month-old baby. A few others, including two children, were located still alive and rescuers were working to free them, according to media.

Roberto Allocca, a doctor from a local hospital, told Sky TG24 television that about 25 people had been treated for minor injuries. Most of the hospital had been evacuated and the injured were treated outside.

Some civil protection squads were already on the island because of brushfires.

Ischia, a volcanic island about a one-hour ferry ride from Naples, is popular with German tourists. German chancellor Angela Merkel has stayed there often.

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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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