Mayon volcano evacuees are entertained by a clown at a public school turned into an evacuation centre in Legazpi City today.
Mayon volcano evacuees are entertained by a clown at a public school turned into an evacuation centre in Legazpi City today.

Christmas cheer for Filipino evacuees



LEGAZPI, PHILIPPINES // More than 47,000 Filipinos who fled their homes in anticipation of the eruption of the Mayon volcano shared rations of noodles, fried fish and fruit to celebrate Christmas in evacuation centres. Children opened donated presents and clowns entertained the crowds, as the government tried to keep the evacuees from slipping back to their homes. The 2,460-metre volcano known for its perfect cone has erupted nearly 40 times over 400 years, sending people packing for months at a time.

But never has it happened during the all-important Christmas celebration, when Filipinos gather with family and friends for traditional meals and songs. "I have mixed feelings of sadness and happiness," 38-year-old vegetable vendor Estela Netuno, who spent the holiday in an evacuation centre with her siblings and nine-year-old son, said today. "We should be home celebrating with the family, but we are here."

She said the gifts of candies and toys her son got from donors, the Christmas Eve dinner pack of noodles and fruits from the local government, and the fried fish and vegetables shared with fellow evacuees during the traditional midnight meal made them happy. With crammed conditions and no kitchen, she said it was difficult to do that this year. "If we were home and we could continue to earn a living, we could cook any food we want for Christmas," she said.

Last night, Masses were celebrated in evacuation centres. Evacuees received gifts or were entertained by soldiers in Santa hats who belted out songs. But the mood was subdued, with many evacuees opting to sleep before midnight. "We have to give them Christmas Eve midnight meal so at least while in the evacuation centre they can also feel the Christmas celebration," Legazpi Mayor Noel Rosal said.

Joey Salceda, the governor of eastern Albay province, where Mayon is located, said he distributed 100 peso (Dh7) bills to children to be spent any way they wanted. The celebration continued today, with a clown's magic tricks and games bringing laughter to young evacuees at an elementary school. Evacuation centres have been the scenes of daily entertainment for the past week as officials try to keep frustrated evacuees from sneaking back to their homes.

The military was still trying to get 600 holdout residents to leave their homes today in villages within the eight-kilometre danger zone, said Capt Razaleigh Bansawan, a military spokesman. Chief government volcanologist Renato Solidum warned that a hazardous eruption was possible within days as Mayon's activities continue to escalate. "It is now in a critical level or intense level of activity, so we should be careful," he said. Ash explosions have intensified, with ash columns now reaching more than two kilometres tall and molten rock spewing one kilometre from the summit, compared to several hundred metres two weeks ago, Mr Solidum said.

* AP

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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.”