Illustration by Gary Clement for The National
Illustration by Gary Clement for The National
Illustration by Gary Clement for The National
Illustration by Gary Clement for The National

Bad times in any language


Felicity Glover
  • English
  • Arabic

I've never studied Latin. In my defence (and perhaps a little smugly), I'm happy to say that by the time I started school, it didn't feature in the curriculum.

Latin, of course, was the mandatory language at school for my parents, who were able to quote it verbatim when I was growing up. Much to my annoyance. Not just because they were my parents, but because, like most teenagers, I thought I knew everything.

I vaguely recall them saying I had it pretty easy when I started studying languages at school - French, of course, because that was the classic of my day. And Bahasa Indonesia; what you'd consider a modern language because it didn't become official until the country declared independence in 1945.

I studied Russian for a while and picked up a smattering of Tok Pisin, or pidgin English, during my time in Papua New Guinea. Then there was some Cantonese in Hong Kong and a little Swedish to impress the locals. A vital advantage these days because that's where I'm doing my house-hunting.

But Latin is one language that I've not shown much of an interest in. Until now, that is. And it's only because of a book I read recently.

Pompeii, by Robert Harris, the British author, is exactly what it says it is: an interesting look into a time long gone that The Sunday Times says is "blazingly exciting". I'm going to go out on a limb here and say that The Sunday Times is trying to be clever because the book is about Mount Vesuvius and its subsequent eruption that destroyed Pompeii.

Anyway, because of the time he was writing about, Harris uses a bit of Latin in his book, including a couple of interesting phrases.

Salve lucrumis one. Or hail profit. That's something we've not heard for a while. And I'm not just talking about the Latin version of it.

Who's making a profit these days? Mark Zuckerberg, the co-founder and chief executive of Facebook, certainly isn't, having lost a few billion big ones after the disastrous listing last month of his social-networking site on the Nasdaq.

Not even being on his honeymoon in Italy is cheering him up, if you believe the photos of him and his new wife sitting in a cafe in Rome this week. They looked miserable.

But, hey, if everything goes belly up and there's another dot-com crash, which some say there will be, she's just qualified as a doctor and can support him as he looks for another start-up idea to "borrow", sorry, share with a couple of other hoodie-wearing nerds.

I think bankers are still pretty happy, too - unless, of course, you are the "London Whale" and responsible for JPMorgan & Co's recent US$2 billion (Dh7.3bn) trading loss.

I imagine if they spoke Latin, many of them would be saying something along the lines of "meus richus", especially when they receive their legendary six-figure bonuses - despite the continuing financial crisis. Or should that be richus meus? See, I told you I knew nothing about Latin.

But for the average person, any sort of windfall has become somewhat of a memory these days. Which rules out using another Latin phrase I have also learnt: lucrum gaudium, or profit is joy.

Thanks to volatile stock markets, record low interest rates on our fixed deposits and savings, the unreliable highs and lows of currency swings that affect our remittances and investment funds that these days return very little (if anything), there's not much out there that is bringing joy to anybody, anywhere.

In fact, in the Middle East and North Africa region alone, 31 per cent of respondents to the latest Bayt.com and YouGov Consumer Confidence Index say their financial situation has worsened over the past year, while 34 per cent say they've not experienced any change at all.

The survey, released this week, also found that 67 per cent of respondents were unhappy with their salaries, which were failing to keep up with the cost of living, and 40 per cent were dissatisfied with their jobs and career prospects.

Globally, as we all know, the picture is much gloomier.

As we head into a summer of discontent for our personal finances, another Latin phrase comes to mind: absque argento omnia vana.

Without money, all is in vain.

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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.”