The theft last week of five paintings by artists including Picasso and Matisse is one of the biggest robberies in the art world in decades. The paintings, which were reported missing from the Musée d'Art Moderne in Paris on Thursday morning after staff discovered a broken window, are reported to be worth almost Dh454 million in total.
The works stolen were Pastoral by Henri Matisse (1906), Olive Tree near l'Estaque by Georges Braque (1906), Dove with Green Peas by Pablo Picasso (1911), Woman with Fan by Amedeo Modigliani (1919) and Still Life with Candlestick by Fernand Léger (1922). The raid, which has been branded a "serious crime against the heritage of humanity" by France's deputy culture secretary, Cristophe Girard, is just the latest in a long line that have taken place over the years.
Back in 1911 Vincenzo Peruggia committed one of the most famous art thefts in history when he stole the Mona Lisa after hiding overnight in the Louvre in Paris. In the morning Peruggia walked calmly out of the museum with possibly the most famous painting in the world - minus its frame - hidden under a museum worker's smock.
Although the absence of the painting was quickly noticed, it was wrongly assumed to have been taken away for cleaning. Police were only notified the following day. The discovery that Leonardo da Vinci's 16th-century masterpiece had been spirited away caused a worldwide furore, and it was a further two years before it was found in Italy and returned. Peruggia, an Italian who maintained he had removed the painting because he felt it rightfully belonged in Italy, was jailed for just over a year.
But it's not only the French who have been targeted. In 2004, two of the most famous works by the Norwegian artist Edvard Munch were stolen from the Munch Museum in Oslo. In the daylight robbery, several masked gunmen escaped with Madonna and Scream.
This was the second time Scream had been stolen, the first being in 1994 when four men made off with the Norwegian National Gallery's version (Munch painted several versions of the image). The National Gallery copy was recovered, undamaged, two months later, while the two paintings stolen in 2004 were found after almost exactly two years.
Both paintings had been damaged, but were back on display in 2008 after being restored to almost their original state.
Luckily for the Vincent Van Gogh Museum, in Amsterdam, there was no such wait to recover its stolen paintings, after a raid in 1990 in which two men made off with 20 paintings - each worth Dh735m. The paintings were found in the getaway car just a few hours later; leading investigators to believe the culprits had decided the stolen goods were not worth the bother of trying to sell off.
Unfortunately, not all art robberies have resulted in quite such happy endings. In the early hours of March 18, 1990 - a few months before the robbery at the Van Gogh Museum - two men in police uniforms and fake moustaches made their way to the main entrance of Boston's Isabella Stewart Gardener Museum, claiming they were investigating a disturbance.
The guards on duty let them in, only realising their mistake when it was too late. The thieves tied them up and made off with 13 items.
Among the items taken were three paintings by Rembrandt, a Vermeer, a Govaert Flinck and a Manet, a Chinese beaker, five sketches by Degas and a bronze Napoleonic eagle. It was also reported that the paintings had been crudely torn from their frames - vastly diminishing their value. Unfortunately, the paintings have yet to be recovered, and may have been sold to collectors who mistakenly believe them to be copies.
As for the latest robbery, the Musée d'Art Moderne has been cordoned off since the incident to allow investigators to look into how the security system was breached - although museum officials have already admitted that the alarm system had not been functioning properly for weeks.
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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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Killing of Qassem Suleimani