Manny Pacquiao will be taking to teaching. Dale de la Rey / AFP
Manny Pacquiao will be taking to teaching. Dale de la Rey / AFP
Manny Pacquiao will be taking to teaching. Dale de la Rey / AFP
Manny Pacquiao will be taking to teaching. Dale de la Rey / AFP

Pacquiao to teach Chinese the basics with boxing academies chain


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SHANGHAI // Manny Pacquiao plans to open a government-backed chain of boxing academies across China to train potential future world champions.

The Chinese government will embark on the first “Manny Pacquiao Boxing Education Institute” in Beijing, with others to be built elsewhere in China later, Pacquiao announced on Manila television in a telephone call from Shanghai.

“The plan is to share with them my boxing knowledge,” said the World Boxing Organisation welterweight champion, who has held world titles in eight weight divisions.

“With a population of 1.4 billion, they have so many boxers. So I think they would be able to produce good fighters, like world champions. The important thing is to teach them the basics.”

The Filipino star, 35, was in China this week as part of a global promotional tour ahead of his November 23 welterweight title defence in Macau against unbeaten American challenger Chris Algieri.

He held talks with the Chinese authorities in the past two days for the “inauguration” of a company to undertake the project.

“They will put up the facilities, and if I have the time, I will visit them, like, once a month or once in three months to supervise them,” Pacquiao said.

Pacquiao did not reveal the project’s timetable or costs, and said the partnership could help thaw frosty ties between the Philippines and China, who are engaged in a tense territorial dispute in the South China Sea.

Pacquiao defended his decision to open boxing academies in China instead of his own country, and laughed off suggestions his project would deprive the Philippines of more world champions.

“In the Philippines we don’t have a problem [producing good boxers],” he said. “What our boxers need is more support. I’m already helping a few of them.”

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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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