South Africa had to charter a direct flight to Karachi ahead of the upcoming Test series against Pakistan. AFP
South Africa had to charter a direct flight to Karachi ahead of the upcoming Test series against Pakistan. AFP
South Africa had to charter a direct flight to Karachi ahead of the upcoming Test series against Pakistan. AFP
South Africa had to charter a direct flight to Karachi ahead of the upcoming Test series against Pakistan. AFP

South African team forced into last-minute charter flight dash to Pakistan


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South Africa's Test cricket squad had to fly to Pakistan on a hastily-arranged charter flight after their commercial flights were cancelled - and Covid-19 restrictions could further complicate the team's plans, it emerged on Sunday.

The 21-member team and support staff arrived in Karachi on Saturday for a two-Test series against Pakistan, starting on January 26.

A team spokesperson confirmed on Sunday that Cricket South Africa had to make urgent late arrangements after being informed on Thursday that Emirates Airlines had temporarily suspended flights to and from South Africa for "operational reasons".

The South African players had been due to travel in groups to Dubai from the airline's hubs in Johannesburg, Cape Town and Durban before travelling on to Karachi.

Cricket South Africa were able to organise a charter flight to enable the team to depart as planned on Friday night, flying directly to Karachi.

With Covid-19 restrictions severely limiting international travel options from South Africa, CSA now has a major logistical and cost problem if a planned Twenty20 international series, due to follow the Test matches, is to go ahead.

It had been expected that an almost completely different squad would play in the three T20 matches, with the Test squad returning to South Africa to prepare for a planned series against Australia.

The Test series in Pakistan is due to end on February 8 with the T20 internationals scheduled on February 11-14.

The home Test series against Australia, which has not yet been confirmed, is likely to start in early March, two weeks later than originally planned.

But a CSA source told AFP that Covid-19 protocols would make it necessary for the South African Test squad to return home immediately after the second Test in Pakistan.

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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.”