It's strange who you meet in the unlikeliest places. My summer was a series of random but interesting encounters with celebs of differing magnitude, none of them planned but each with its own little bit of excitement.
By far the biggest star I bumped into was Charlie Watts, drummer of The Rolling Stones. Sitting outside the Bibendum cafe in London's swanky South Kensington on a warm summer's afternoon with wife and child, I looked up from my plate of charcuterie to see a little old man strolling casually down the road, incongruously dressed in a raincoat done up to the neck despite the fine weather. It took about two seconds for the face to register.
"Charlie Watts," I shouted to the surprise of other lunchers, and couldn't stop myself from running across to him and grabbing his hand. "Charlie, I'm a great fan. I saw you last week in Hyde Park, you were fantastic. Keep on rocking."
I realised it must have looked slightly ridiculous, one elderly man (myself) enthusiastically shaking the hand of an obvious stranger in the street, but Charlie was nonplussed. "Thanks man," he replied with just the faintest smile before shuffling off down the Brompton Road. It made my day.
Then, a few days later, in a sleepy provincial town in south-west France, we were enjoying an open-air communal lunch by the banks of the river Vincou when I started up a conversation with the chap seated to my left. Chatting about the weather, food and livelihoods, it turned out he was Giles Darby, one of the "NatWest Three" investment bankers who got caught up in the Enron scandal a decade ago and ended up doing time in prison in Texas.
I've covered plenty of financial scandals in my time, and met many of the perpetrators of frauds big and small, and they all have an air of obsession with their case. Giles was rather less obsessive, although we did spend a while talking about the high-profile circumstances of his arrest, extradition and eventual imprisonment for crimes of which he still protests innocence.
But it was obvious he was happy just getting on with life, back in business as an investor in the leisure industry, and having just bought a property in the beautiful medieval town of Bellac in the Haute-Vienne region of France, where we were.
"I haven't told my side of the story yet. Maybe I will one day, and there is explosive stuff there, right at the heart of the British business and political establishment," he said. I look forward to reading that, Giles.
At the same enjoyable gathering I was introduced to the mayor of Bellac, Jean-Michel Doumeix. He has been running the little conurbation (population about 5,000) since 2008, and seen it through some pretty dark days.
In my faltering schoolboy French, I asked how the global financial crisis had affected Bellac. He explained that the main business of the place was agriculture, which was not so badly hit by the recession. Bellac had in days gone by been one of the leading leather processing centres of France, though that had died out many years back.
"But we suffered from the English disease. Property prices fell when the English stopped buying second homes here. It's getting better now though," he said.
I asked if he had a political allegiance, and he beckoned me closer conspiratorially. "I am socialist, like Francois Hollande [the former-French president] but I do not tell anybody that. The town would never have voted for me if they knew."
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.”
Champions League Last 16
Red Bull Salzburg (AUT) v Bayern Munich (GER)
Sporting Lisbon (POR) v Manchester City (ENG)
Benfica (POR) v Ajax (NED)
Chelsea (ENG) v Lille (FRA)
Atletico Madrid (ESP) v Manchester United (ENG)
Villarreal (ESP) v Juventus (ITA)
Inter Milan (ITA) v Liverpool (ENG)
Paris Saint-Germain v Real Madrid (ESP)
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Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Dirham Stretcher tips for having a baby in the UAE
Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:
• Buy second hand stuff
They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.
• Get a health card and vaccinate your child for free at government health centres
Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.
• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.
Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.
• Once baby is ready for solids, cook at home
Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.
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