Adrian Hayes kite-skis across Greenland on Wednesday, towing two sleds of supplies.
Adrian Hayes kite-skis across Greenland on Wednesday, towing two sleds of supplies.

Adventurers ready for last push of Arctic trek



DUBAI // After 44 patience-trying days of temperamental weather and halting progress, Adrian Hayes and his teammates are perhaps hours away from the Arctic Ocean and the final phase of their expedition across Greenland's ice sheet.

If they manage to cross the 150km remaining between them and the sea, the kite-skiing trio will be only the second expedition to make an unsupported journey from the Atlantic to the Arctic Ocean. From there they must travel 800km west to their destination, the village of Qaanaq in north-west Greenland. But, Hayes warned yesterday, unknown terrain means the final push is unlikely to be simple. "We've got a big couple of days ahead," he said. "We don't know what is going to hit us. Up until now, for the last 43 days, we've known we are going to be on flat ice and we are going to get blown east-west, we're going to have different winds, that we are going to stand still in our tent, not moving. We have known the terrain."

Now, he said, the ground is becoming hard and bumpy and the view is changing dramatically. "We are going downhill," he said. As the snow is on the hills, it is subject to more of these katabatic winds, so it is all very much cut up and carved up, and because of the curve of the ice you can't see anything. There are mountains perhaps 100km away to our north-east and north-west - maybe after 60km we should see some."

The team have only GPS co-ordinates and a satellite map, and must travel using whatever wind they can find, avoiding crevasses in Henson Glacier as they make their descent to JP Kocks Fjord. "We don't know what's there, so it's time to stand up and make it count," he said. "We are now in the final push. This is it. We have got the final little leg, 800km, to come, but this is the crux, as we say in climbing terms - the most challenging part.

"We have got good wind today; we'll just have to use it to the fullest and hopefully use the winds to get us as close to the fjord as we can. But we have to make our way carefully through this, so quite a few challenges." Hayes began the expedition on May 20 with two Canadians, Devon McDiarmid and Derek Crowe. If they succeed in their effort to kite-ski 3,500km along the world's second-largest ice-sheet, unassisted, they will make the record books for the longest unassisted Arctic expedition in history.

Since they departed, they have suffered small setbacks, including problems with kites and days of winds blowing lightly or in the wrong direction. But after a slow start to the week, the team have spent the past few days pushing north, and on Wednesday they used what little wind they had to position themselves west, directly south of the target point. Hayes was reluctant to say how long it would take to travel the 150km to the sea. The entire expedition was projected to take 40 to 65 days.

"If it was 150km with known terrain, like on the ice cap we've covered, then we would say on good winds we could do that today," he said. "But it's this unknown factor at the end with the mountains, crevasses and glaciers. We just don't know what is going to face us, so we are not going to make any predictions. I'm basically saying over the next couple of days is when we're going to be pushing to get there."

With the terrain largely uncharted, and the sea likely to be frozen over, the team will use GPS co-ordinates to identify where the Arctic Ocean begins. After a few celebratory photographs, they will embark on the final phase of the journey. "We would love to climb up, arrive at the sea edge, have a cup of coffee at Starbucks and then relax, camp the night and off we go, but it is not going to be quite like that," he said.

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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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