Chilean Embassy stages quake benefit


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ABU DHABI // The Chilean Embassy has launched a campaign to raise funds for the victims of the 8.8 magnitude earthquake that rocked the south of the country last week, killing more than 800 people and destroying thousands of homes. Marco Martinez, the Chilean consul, said help is still urgently required. Tens of thousands of people have been left homeless and scrambling for basic supplies. "The earth is still moving so people are afraid," Mr Martinez said, referring to aftershocks.

The south of Chile suffered the worst damage and many people are living in temporary housing as the weather grows worse. "The problem is that the winter is coming in Chile and in the south the winter is stronger," Mr Martinez noted. On March 17, the embassy will sponsor an invitation-only concert at the Emirates Palace featuring Chilean artists who live in the UAE to raise money for relief. The musician Ovidio De Ferrari will perform, along with the soprano Paula Ruiz.

"We have a community of 187 Chileans in the UAE and most have already sent donations. For this campaign, we're focusing on expats and locals," Mr Martinez said. Guests will be asked to donate what they can afford. The concert is one in a series of attempts by Chile to tap the power of artists to raise funds. A national telethon over the weekend, which collected donations in 400 locations across Chile, raised US$58 million (Dh213m) to help build temporary accommodations for those left homeless.

Mr De Ferrari, who is the conductor of the Dubai Chamber Orchestra, said classical music concert in Abu Dhabi would be sombre but spectacular, and the funds raised would be put to good use. "There are so many people in need of help and sheltering and who need support. It would be a disaster if we don't get help very quickly," said the musician, who has lived in Dubai for 16 years. "I would like to persuade all the people, not only the Chileans and Latin Americans, but everyone who can help us to contribute. That is the most important thing about this concert," he said.

The concert will feature a mix of jazz, classical and modern music performed by a local orchestra, Mr De Ferrari on his piano, and the vocal stylings of Ms Ruiz. The Embassy has also opened a special account at HSBC, number 011-223328-002, in which donations will be accepted for one month from today. Besides the concert, the Mexican restaurant My Way, on Hamdan Street, has agreed to donate all profits from a specially themed Chilean menu on Thursday.

jgerson@thenational.ae

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1: Quinoa 

2. Bathua 

3. Amaranth 

4. Pearl and finger millet 

5. Sorghum

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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