Depression is more than teenage angst


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Being a teenager is tough. The world is a daunting place and the soup of hormones that flood teenagers' bodies can lead to rapid changes in mood and unusual behaviour. Most parents see these mood swings as part and parcel of the maturation process, but occasionally they hint at something more troubling.

As The National reports today, an estimated one high school pupil in five in Dubai shows above-normal symptoms of depression. The Dubai Health Authority looked at hundreds of students between the ages of 14 and 18, the first study of its kind in the UAE across private and public schools.

The study does not mean that so many students actually have depression. It merely identifies symptoms that might, if they persist or are exacerbated, develop into depression. Some of the conditions are particular to life in the UAE, such as a sense of cultural dislocation in a place with so many different nationalities. Others are problems found in every country, such as a lack of psychological support from families.

The study highlighted eight main predictors of depressive symptoms, the most interesting of which was a lack of physical activity. Taking little exercise was strongly correlated with elevated symptoms - 23.2 per cent of students who were physically inactive had elevated symptoms compared to 13.7 per cent of those who were active.

Physical inactivity is a particular problem in the GCC, where the car culture reigns supreme and the summer heat makes outdoor activity difficult. That is one reason why schools need to take a greater role in ensuring that pupils are active. Team sports and inter-school leagues are an obvious way of doing this.

At the same time, city planning has a role. Too many neighbourhoods, especially in the urban centres, lack facilities for physical activity. This is not merely a case of building more parks, but of ensuring that neighbourhoods have community spaces where children and teenagers can spread their wings.

Depression, as opposed to passing sadness or angst, is a serious problem that can easily go unnoticed. Families have the first responsibility to communicate with children and nurture their passage into adulthood, but society can do more to offer creative outlets for that teenage energy.

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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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Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

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