Most British expats fail to vote in election


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It appears to be the UK's closest election for decades, but the vast majority of Britons living in the UAE are missing out on having their say. Only 30,559 registration forms for overseas voting have been downloaded worldwide from the UK Electoral Commission website since its registration campaign began on March 15.

About 15,000 British nationals living overseas were registered to vote on that date, from an expatriate population of about 5.5 million, including more than 100,000 in the UAE. Political parties have been encouraging overseas voters to register. A handful of votes in a handful of constituencies could make a significant difference as the British parliament uses a first-past-the-post electoral system.

"This is a tight-fought election and every vote counts," said a spokesman for Conservatives Abroad. The precise number of overseas voters will not be known for several months. Once the form is downloaded it can be printed several times, so download figures give only a rough indication of the number registering. Some forms may have been delayed by the volcanic ash cloud, which disrupted airmail during the registration period. The deadline for postal vote applications passed on April 20, and for proxy votes on April 27.

Some people have criticised a complicated registration system and a lack of electronic voting. In the 2008 US election, 69 per cent of voters living abroad cast a ballot, far outstripping British overseas voters. In the last UK general election, in 2005, just 18,000 overseas votes were cast. Geraldine Chell, who lives in Sharjah and works for the Higher Colleges of Technology, said she was not aware she could vote from overseas.

"I have just never realised that you could do a postal vote and in all honesty don't keep up with politics so wouldn't know who to vote for anyway," she said. "I feel very ignorant in admitting this." Stephen Board, 26, a UAE resident, said he had registered by proxy and believed it was important to vote, as government policies affected citizens overseas. "It goes without saying that foreign affairs are important to all Brits abroad, especially the ones on possible expat taxation," he said. "Britain's foreign policy also has an effect on the way the British and British companies are seen abroad, which affects us all." newsdesk@thenational.ae

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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.”