Island hopping: the sequel


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There are lots of small children and tiresome teens but no other babies on the 7.25am ferry from Athens to the island of Naxos, a four-hour journey away. Waiting quayside at the harbour of Piraeus, surrounded by huge ships, I'm feeling too amazed at having made it - awake, dressed, washed, fed, and taxied by 6.30am - to wonder how we are actually going to get aboard the Blue Star Naxos. As the steel ramp is lowered to allow vehicles and pedestrians to embark, and a crush of people surge forward, baby and I are swept along, husband, manfully grappling with two enormous suitcases on tiny wheels, behind.

Up the ramp, baby safely strapped into her car seat which is clipped into the pushchair, we smoothly trundle onto the car deck. So far so very familiar: I'd discovered the joys of Greek island hopping, on and off ferry after ferry, one summer 16 years ago. My husband (then boyfriend) and I, equipped with backpacks and straw sun hats, had lazed on wooden benches on deck, read books and admired the changing landscape. Looking back, I now think of that holiday as 'Island Hopping Part One: The Carefree Years' and wonder if this trip will ever be as relaxing.

This morning's odyssey feels rather different. For a start, there is a purser in a smart uniform ready to take pity on a harassed-looking mother stupid enough to bring a pushchair aboard. I think that I am wearing my unflappable, ready-for-any-adventure face but, whatever, I'm clearly in everyone else's way so he picks up the front of baby's carriage and helps me up the escalator. Escalator? Greek ferries have obviously become a bit more swish, or just a bit more grown up like me.

The helpful man leaves us in the lounge area where there are airplane-style seats and a flat-screen television. I look around for husband, who's still trailing and toiling. Being uptight northern Europeans, we had to keep all our belongings with us rather than making life easy and dumping the suitcases in the locker downstairs.

It then becomes clear that travelling with me, rather than baby, will be today's challenge. Capable of succumbing to sea-sickness, even on a battleship-sized boat on the smoothest seas, I have to sit outside buffeted by fresh air. So we all have to sit outside. Greece being Greece, that's also where the many smokers take refuge as well as passengers seeking sunshine and glorious views. We finally manage to find seats away from smoke, bright sunshine, wind and sea spray (not easy), right next to a group of backpacking 20-somethings, who make me feel wistful. And very old.

Baby in the meantime is chortling happily. There's so much to see that she's quickly exhausted and falls asleep in my arms. Her parents are left to enjoy a rather expensive coffee and spanakopita (spinach and feta pie). Truth be told, as the sun dances on the water, today hasn't actually been all that difficult.

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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