While Japanese pastry chefs may have started using cocoa a few centuries after the West, this once-foreign flavour has captivated Japan's confectionery world.
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Japanese chocolate makers and pastry chefs were the star guests at the 17th Salon du Chocolat held in Paris last week. One of them, Susumu Koyama, 47, was even named "Best Foreign Chocolatier" - beating top masters from celebrated chocolate-making nations such as Belgium and Switzerland.
And while "Japanese chocolate" may still strike some as incongruous, cocoa is definitely the rising star in the Land of the Rising Sun, said Koyama.
Fermented tofu with chocolate-cream filling was among the creations displayed at the 2011 Salon by Koyama, who said he relies on "instinct" and "nature" to ply his trade.
By the 17th century, chocolate made from the cocoa bean native to South America was a fashionable drink in many parts of Europe but only reached Japan "around 250 years" after it hit the West, Koyama said.
As a result, most of Japan's best-known pastries are largely chocolate free. But Koyama said Japanese chocolate makers are now "more and more numerous" and he's doing his part to boost the trend. The chocolatier set up a school in 2004 to turn out a new generation "trained in Japan" but, like himself, mindful of the French tradition.
He readily admits that childhood flavours infuse his concoctions, which he collectively calls "DNA Kyoto". One of his most acclaimed pieces, named Yanbai, is a bittersweet mix of dark chocolate, honey and a popular seven-spice powder called kuro-shichimi, a condiment often used by his mother.
Sadaharu Aoki, another pioneering Japanese chocolatier returning to the Salon this year, owns boutiques in Taiwan and Tokyo as well as four in Paris, where he offers a daring twist on the classic French pastry, l'opera, a layered cake with chocolate and cream filling. Sadaharu flavours his with green tea and calls it "bamboo".
On display at the Paris show was his latest invention: a chocolate macaroon set in a green-tea waffle flavoured with black sesame, a seed sometimes used to season broiled eel, and a Japanese pepper spice called sanshou.
Even Japan's historic confectionery house Toraya, one of the oldest makers of traditional Japanese sweets that has supplied confectionery to the Imperial Royal family since the 16th century, has embraced the trend.
The company, which started selling its pastries in Paris 31 years ago, now offers the classic yokan, a thick jellied dessert using the native azuki, or red beans, with sweetened cocoa.
"The essence of creation is knowing how to combine new flavours," a Toraya official said.
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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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