Respected announcer gives his backing for Sumo television blackout



TOKYO // Kunihiro Sugiyama, the veteran sumo commentator, said Japan's ancient sport needs to break all ties with organised crime to win back the confidence of fans. Sugiyama, one of sumo's most distinguished announcers, has spent the past 57 years covering the sport for national broadcaster NHK. "It's clear people want all ties to the underworld completely severed," Sugiyama said yesterday at the Foreign Correspondents' Club of Japan. Sumo's latest scandal involves dozens of top wrestlers and coaches who allegedly wagered tens of thousands of dollars on professional baseball games, with gangsters acting as go-betweens.

Many sumo watchers say the latest scandal merely underscores a close relationship sumo has had with organised crime for decades. It has also come to light in recent weeks that several sumo training facilities, known as stables, have been financed with contributions from gangsters. "The sport made itself vulnerable to this situation," Sugiyama said. "There are simply too many stables now. Some stable masters take out loans from banks but others can't resist the offers of anti-social elements." As a result of the recent revelations, NHK decided for the first time since 1953 not to broadcast live daily coverage of the recently completed Nagoya Grand Sumo Tournament, a move Sugiyama agreed with.

"That was the right thing to do," Sugiyama said. "NHK, which is a public broadcaster, got many faxes and telephone calls before the Nagoya tournament and 70 per cent of those were in favour of not broadcasting the tournament." In an incident last year, gangsters from a notorious crime syndicate took complimentary front row seats at a tournament to raise the spirits of fellow members in jail. The gangsters were clearly visible on the live television broadcasts, one of the few shows inmates are allowed to watch in prison.

Sugiyama said the next tournament in September could see a similar blackout unless the Japan Sumo Association (JSA) takes steps to clean up the sport. "It all depends on what reforms are implemented by the JSA," Sugiyama said. "Until specific reforms are introduced we won't know, so the autumn tournament could be held under the same circumstances as Nagoya." * AP

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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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