Japan's Fukushima lifts evacuation order 11 years after nuclear incident


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Residents have been allowed to return to the remote Japanese town housing the wrecked Fukushima nuclear power plant for the first time in 11 years, a major milestone for cleaning up the worst atomic disaster in decades.

Futaba, located in Japan’s Fukushima prefecture, lifted evacuation orders for some areas on Tuesday. Residents were removed from their homes following the nuclear meltdown at Tokyo Electric Power Co’s Fukushima Dai-Ichi nuclear power plant in March 2011.

The meltdown was sparked by a tsunami that swept away towns and cities after a 9.0-magnitude earthquake, leaving more than 20,000 people dead or missing.

It is the last of 11 municipalities to have an evacuation order lifted after the disaster. By 2030, the town aims to have 2,000 residents, less than 30 per cent of its original population, Japan Times reported.

The move comes as Japan shows renewed interest in atomic power to offset higher oil and gas prices and the effect of a weak yen on the resource-scant nation. While the Fukushima plant itself remains inoperable, radiation levels around the site have dropped over the last decade and evacuation orders are steadily being lifted for surrounding towns.

Nevertheless, Futaba faces a long road ahead to rebuilding the town. Most of the town remains off-limits, and a survey last year showed only 11 per cent of its citizens want to return to their hometown.

Last week, Tepco announced it had delayed work to remove radioactive debris from one of the reactors at the devastated power station, saying it needed an "additional preparation period" of up to 18 months. The work could now start as late as March 2024.

The delay is necessary "to improve the safety and ensure the success" of surveying inside the reactors and retrieving the debris, the company said.

Engineers are fine-tuning a robotic arm specially designed for the work, including adjusting its speed and precision, Tepco said.

AFP and Bloomberg contributed reporting

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: August 30, 2022, 11:02 AM