Pakistan still waiting on Mumbai evidence



Pakistan was still awaiting "concrete proof" today that a group based there carried out the devastating Mumbai attacks, as India said evidence was mounting and warned its anger had not cooled.

"Pakistan is currently doing its own internal investigation and is waiting for concrete proof to be handed over to us," Mr Zardari told reporters in Istanbul, where he discussed ways to combat extremism with Afghan leader Hamid Karzai. "Our position is that we have always been and still are the victims of terrorism." Last week's 60-hour Mumbai siege by 10 militants has badly hit relations between India and Pakistan, the nuclear-armed South Asian neighbours who have fought three wars since independence from Britain.

The attack by gunmen against multiple targets in Mumbai, including the landmark Taj Mahal hotel, killed 163 people including 26 foreigners. Nine militants were killed, while one was captured alive. New Delhi has increasingly pointed the finger at Islamabad over the violence, sometimes referred to as 'India's 9/11,' which has enraged public opinion and threatened a slow-moving peace process. On Friday, Prime Minister Manmohan Singh said India has been angered "as never before" by the attacks as his new home minister hinted at growing evidence of Pakistani involvement.

"We have told the world that the people of India have felt a sense of hurt and anger as never before due to the Mumbai terror strikes," Singh said. "It is the obligation of all concerned that perpetrators of this horrible crime are brought to book," Singh added. India says all 10 gunmen involved in the assault came from Pakistan, and has handed Islamabad a list of 20 terror suspects, with demands for their arrest and extradition.

Suspicion has focused on Lashkar-i-Taiba, a Pakistan-based militant group which has fought Indian control of divided Kashmir. Lashkar was blamed for an attack on the Indian parliament in 2001, which pushed the two nations to the brink of war. Indian Home Minister Palaniappan Chidambaram clearly had Pakistani groups in mind when he spoke of proof that elements outside the country were responsible. "There is ample evidence to show that the source of the terrorist attack was clearly linked to organisations which have in the past been identified as being behind terrorist attacks in India," Mr Chidambaram said.

"There are one or two countries which have broadly confirmed our preliminary conclusions," he added. However, Mr Chidambaram also acknowledged there had been some security and intelligence "lapses" prior to the attacks. Several Indian newspapers on Friday cited unidentified intelligence sources as saying that Pakistan's powerful spy agency, the Inter Services Intelligence (ISI), was involved in training the gunmen.

The Indian Express said intercepts of conversations between the gunmen and their handlers showed the use of communication pathways often used by the ISI. Separately Vienna officials said they would investigate reports the militants used an Austrian cellphone number during the siege. The European Union also said it may increase aid to Pakistan and pledged to strengthen relations with Zardari's government to counter the threat of terrorism.

Pakistan has been a key US ally since the September 11 attacks seven years ago, but many critics openly question whether elements in the Pakistan military and intelligence services support militants.

*AFP

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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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