FILE - In this Jan. 14, 2018, file photo, a South Korean army soldier stands guard next to a signboard showing the distance to North Korea's capital Pyongyang and to South Korea's capital Seoul from Imjingang Station in Paju, near the border with North Korea, South Korea. South Korea's presidential office said on Sunday, March 4, 2018, a 10-member government delegation is to visit North Korea this week for talks on how to promote peace on the Korean Peninsula. (AP Photo/Ahn Young-joon. File) (AP Photo/Ahn Young-joon)
In this January 14, 2018 photo, a South Korean army soldier stands guard next to a signboard showing the distance to North Korea's capital Pyongyang and to South Korea's capital Seoul. Ahn Young-joon Show more

South Korea to send envoys to North on Monday



South Korean President Moon Jae-in will send a team of special envoys – including Seoul's spy chief – to the North on Monday to push for talks between Washington and Pyongyang on nuclear weapons.

The delegation, announced by Mr Moon's office on Sunday, is the latest chapter in a remarkable Olympics-driven detente between the two Koreas.

An intense rapprochement saw the two foes march together at the South's Pyeongchang Winter Olympics that ended February 25, with the North's leader Kim Jong-un sending his sister as a special envoy to the event.

Kim Yo Jong's appearance at the Games' opening ceremony made global headlines, marking the first visit to the South by a member of the Kim family since the end of the Korean War.

Moon has sought to use the Pyeongchang Games to open dialogue between the US and the North in the hopes of easing a nuclear standoff that has heightened fears over global security.

He chose five top officials – including top national security adviser Chung Eui-yong and spy chief Suh Hoon – to visit Pyongyang on Monday, Mr Moon's spokesman said.

"The special delegates will have extensive discussions over issues including creating conditions for North-US talks to denuclearise the Korean peninsula and improving inter-Korea ties," Yoon Young-chan told reporters.

The 10-member group – five top delegates and five supporting officials – would fly to the North's capital Pyongyang on Monday afternoon before returning on Tuesday, Mr Yoon said.

The delegation will then fly to the US to explain the result of the talks to officials in Washington, he added.

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Mr Suh is a veteran in dealings with the North. He is known to have been deeply involved in negotiations to arrange two previous inter-Korea summits in 2000 and 2007.

The isolated, impoverished North staged its most powerful nuclear test and test-fired multiple missiles last year, including some capable of hitting the US mainland, in defiance of UN sanctions.

The North's leader Kim and US President Donald Trump have also traded threats of war and personal insults, sending tensions soaring.

Mr Moon, who advocates dialogue with the nuclear-armed regime, said last week that Washington needs to "lower the threshold for talks" with Pyongyang.

But the US has ruled out any possibility of talks before the North takes steps towards denuclearisation, and imposed what Mr Trump hailed as the "toughest ever" sanctions on Mr Kim's regime late last month.

On Saturday, a foreign ministry spokesman in Pyongyang called on the US drop any preconditions for talks.

"The US is taking preposterous action by continuing to trumpet an insistence that it will not have dialogue unless a right condition is met," the unnamed spokesman was quoted as saying by the state-run KCNA news agency.

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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.”