More than 3,000 displaced in Myanmar rebel clashes: UN


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Yangon // Over 3,000 people have fled their homes in northern Myanmar following clashes between two ethnic rebel groups, the United Nations said on Tuesday, raising fears the government’s fragile peace efforts could be fracturing.

Heavy fighting in the northern state of Shan broke out last week between the Restoration Council for Shan State (RCSS) and the Ta’ang National Liberation Army (TNLA).

It is a rare instance of the country’s ethnic armed groups turning on each other and comes during a complicated transition from an army-backed goverment to Aung San Suu Kyi’s pro-democracy party.

“We are receiving reports that more than 3,000 people have been displaced in the past week,” said Mark Cutts, country head of the UN’s office for the coordination of humanitarian affairs.

He said most of the newly-displaced were being housed in monasteries in the town of Kyaukme and receiving assistance from local groups and the Myanmar Red Cross.

Kyaukme’s lower-house MP Sai Tun Aung said locals have told him of teachers and students fleeing on foot to escape arrests, killings and arson attacks being carried out by “an armed group moving around the region”. He did not specify which rebel group was responsible.

Myanmar’s government has tried in recent years to end decades-long civil wars between the military and numerous ethnic armed groups battling for greater autonomy.

The outgoing government signed a peace deal with a handful of major groups, including the RCSS, late last year.

But its efforts to sign a nationwide peace deal foundered after the government baulked at including several groups locked in ongoing conflict with the military, including the TNLA.

It is unclear what sparked the recent fighting between the RCSS and TNLA, but the lack of full participation in the peace deal has raised concerns that rebel groups may start vying for territorial control with each other.

The peace talks with ethnic armed groups have been steered by the quasi-civilian government that replaced outright military rule in 2011. It was trounced in November elections by Aung San Suu Kyi’s National League for Democracy.

Last month ethnic minority groups applauded the outgoing government’s peace efforts at a conference in the capital Naypyidaw, but said the difficult task of implementing the agreement lies with Ms Suu Kyi’s party, which will form a government in April.

Significant hurdles lie ahead, including ongoing fighting and Ms Suu Kyi’s strained relationship with the still hugely powerful military, which holds the key to lasting peace.

* Agence France-Presse

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Wednesday, January 22, v Afghanistan

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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.”