People walk down the Long Walk ahead of the Coronation of Britain's King Charles, in Windsor on Saturday. Reuters
People walk down the Long Walk ahead of the Coronation of Britain's King Charles, in Windsor on Saturday. Reuters
People walk down the Long Walk ahead of the Coronation of Britain's King Charles, in Windsor on Saturday. Reuters
People walk down the Long Walk ahead of the Coronation of Britain's King Charles, in Windsor on Saturday. Reuters


Why King Charles should shrink his real estate empire


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May 01, 2023

One of the functions carried out by King Charles III in the lead up to his coronation next weekend was the dedication of the “anointing screen”. It will cover the UK’s new monarch from the cameras at the vital moment when he is anointed with oil in the ceremony.

The screen is a work of magnificence in itself. The hand and digital embroidery, managed by the Royal School of Needlework, has created a tree that includes 56 leaves representing the 56 member countries of the Commonwealth. The screen is borne on oak poles made from a tree planted in 1765.

On the day of the coronation, these poles, topped by two eagles, cast in bronze and gilded in gold leaf, are to be held at a total height of 2.6 metres and width of 2.2 metres. Buckingham Palace has said that the three sides of the screen will be borne by a Trooper and Guardsman from each of The Life Guards, Grenadier Guards, Coldstream Guards, Scots Guards, Irish Guards and Welsh Guards.

The Palace note explained that the screen is a collaboration of specialists in traditional crafts, including members of the Worshipful Company of Broderers, Drapers and Weavers and the Worshipful Company of Carpenters.

I mention all this because nothing is left to chance in matters surrounding the UK monarchy. The emphasis is on the cumulative and a careful build-up to grand events. There is no space for quick thinking or chopping and changing to suit the occasion. After all, a mere cloth screen that will be used for minutes has a backstory that goes back centuries, plus a recent history involving dozens of specialists.

A view of souvenirs designed for the coronation of King Charles in Windsor, Britain, on Saturday. Reuters
A view of souvenirs designed for the coronation of King Charles in Windsor, Britain, on Saturday. Reuters
The portfolio is simply too big for the smaller circle of royals

Yet, there are a number of those who argue that King Charles at 74 must be ruthless and rapid in his decisions during his time on the throne. The coronation may not be the time to demonstrate this agenda, but the work must start exactly after it.

What caught my eye about the announcement on the dedication of the anointing screen was that it was held in the Chapel Royal at St James’s Palace in central London.

There has been much talk in recent years about the slimmed-down monarchy and King Charles having an agenda of running a core team of himself, heir Prince William and a few other hardworking and trusted relatives.

Some of the balcony pictures from the era of the Silver Jubilee in 1977 and onwards would show dozens of royals, most of whom were described as working royals. This means that at the time, they gained some support from the state funds entrusted to the monarch. And crucially they would have a royal residence plus, most likely, a grace-and-favour apartment in one of the central royal palaces.

It is quite a step change to now go down to just a handful of senior royals working at the coalface of investitures, walkabouts and ceremonial patronages. One problem, however, is that the number of palaces hasn’t been reduced. This is one area where a ruthless king could act to show a country struggling with a cost-of-living crisis that he was interested in a lighter burden.

In London alone, there is considerable slack. St James’s Palace is practically the only domain of his sister Princess Anne. King Charles lives just next door in Clarence House as he appears to resist a formal move into Buckingham Palace (which is undergoing renovation). Kensington Palace has a smattering of elderly grandchildren of King George V. Prince William and family have more or less abandoned it.

The UK royal family has often moved on from palaces and properties that monarchs spurn.

The anointing screen used in the coronation of King Charles III at St James's Palace in London. AFP
The anointing screen used in the coronation of King Charles III at St James's Palace in London. AFP
King Charles III has inherited Balmoral Castle (left) from the Crown Estate. He also owns Tresco Island in the Isles of Scilly on which sits Dolphin House, where the Duke and Duchess of Cambridge have holidayed. Photo: Alamy, Dolphin House
King Charles III has inherited Balmoral Castle (left) from the Crown Estate. He also owns Tresco Island in the Isles of Scilly on which sits Dolphin House, where the Duke and Duchess of Cambridge have holidayed. Photo: Alamy, Dolphin House

The surviving parts of Richmond Palace, the home of King Henry VII, in what is now a south-west London suburb, are now rented out on lease by the Crown Estate, providing an income for the royal fortune and a salubrious home for modern families. The Wardrobe, Trumpeters' House and Gate House still bear royal markings even if they are now occupied by commoners.

Nearby Hampton Court is a working tourist attraction – and another place of residence for a lucky few – not a King’s bastion. Osborne House on the Isle of Wight may have been one of Queen Victoria’s sanctuaries, but it has long served as a tourist attraction.

The conversion of Buckingham Palace and its 40 acres of gardens into an open-door central London public spectacle has been occasionally discussed. The ornate interiors of Kensington Palace, such as the ceilings of the Cupola Room and the Presence Chamber, would attract as many visitors as a Paris museum but are not marketed as accessible to the public.

Turning over the properties of the Crown in central London is more than just an economic decision. It may be tied up in considerations around the national heritage. For the royals as a family, there may be sadness at forfeiting city apartments that are very convenient. For staff, there would surely be rationalisation involved.

The King should weigh this against the cost of not acting. The portfolio is simply too big for the smaller circle of royals. The next generation amounts to Prince William’s three young children. The generational overhang of King Charles’s cousins has withered quickly.

Showing that he is prepared to take bold action would endear the monarch and make the royals less vulnerable to a hostile turn in the public mood. A reforming monarch who put his own family on a sounder footing would be a fitting legacy for the man who is anointed King under that special cloth on Saturday.

THE BIO

Occupation: Specialised chief medical laboratory technologist

Age: 78

Favourite destination: Always Al Ain “Dar Al Zain”

Hobbies: his work  - “ the thing which I am most passionate for and which occupied all my time in the morning and evening from 1963 to 2019”

Other hobbies: football

Favorite football club: Al Ain Sports Club

 

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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Updated: May 01, 2023, 5:00 AM