Rescuers carry the body of a victim caught in a landslide caused by Typhoon Kompasu in Baguio city, northern Philippines. AP Photo
Rescuers carry the body of a victim caught in a landslide caused by Typhoon Kompasu in Baguio city, northern Philippines. AP Photo
Rescuers carry the body of a victim caught in a landslide caused by Typhoon Kompasu in Baguio city, northern Philippines. AP Photo
Rescuers carry the body of a victim caught in a landslide caused by Typhoon Kompasu in Baguio city, northern Philippines. AP Photo

Typhoon Kompasu death toll rises to 19 in Philippines


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The death toll from Typhoon Kompasu has risen to 19 after a month’s worth of rain fell in the Philippines in just two days.

Kompasu triggered landslides and flash floods across the archipelago, with authorities blaming “a new normal caused by climate change”.

National disaster agency spokesman Mark Timbal said the rainfall was "even greater” than from Typhoon Ketsana, which was categorised in the Philippines as Tropical Storm Ondoy, which hit in 2009 and claimed hundreds of lives.

Kompasu, named after the Japanese pronunciation of compass, intensified the south-west monsoon that had already saturated areas of the disaster-prone country.

Provinces on the most populous island of Luzon were hit hardest by the storm, which caused damage worth an estimated $20 million-plus to the agriculture sector and damaged hundreds of homes.

"This only proves the effect of climate change when it comes to the increasing magnitude of these natural hazards," Mr Timbal said. "This continues to pose a challenge to our disaster management system. We always have to step up our preparations in view of the worst-case scenario for every natural hazard."

Because a warmer atmosphere holds more water, climate change increases the risk and intensity of flooding from extreme rainfall.

The majority of the deaths were in the north-west province of Ilocos Sur, where most of the victims were caught in flash floods. The disaster agency is also checking another 11 reported fatalities, mostly in the landlocked mountainous province of Benguet. There are 14 people reported missing.

A rescue operation at a flooded village near the town of Gonzaga in the Philippines' Cagayan province. EPA
A rescue operation at a flooded village near the town of Gonzaga in the Philippines' Cagayan province. EPA

Mr Timbal said the "changing nature" of the hazards made it difficult for authorities to achieve their target of zero casualties. "Each hazard is unique to the next one," he said. "It's a new normal caused by climate change."

Mr Timbal said nearly 15,000 people fled their homes, but only about half stayed in evacuation centres. The rest sought shelter with friends or relatives because of fears of catching the coronavirus.

The storm moved across the South China Sea on Tuesday towards Hong Kong, forcing the international business centre to batten down.

The Philippines, ranked as one of the countries most vulnerable to the impacts of a warming planet, is hit by an average of 20 storms and typhoons every year, which typically wipe out harvests, homes and infrastructure in already impoverished areas.

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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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Updated: October 14, 2021, 9:35 AM