Cruise ship the Pacific Dawn in November 2007 as it sails past the Sydney Opera House in Sydney.
Cruise ship the Pacific Dawn in November 2007 as it sails past the Sydney Opera House in Sydney.
Cruise ship the Pacific Dawn in November 2007 as it sails past the Sydney Opera House in Sydney.
Cruise ship the Pacific Dawn in November 2007 as it sails past the Sydney Opera House in Sydney.

Swine flu ship allowed to dock


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A cruise ship held off northeastern Australia amid fears of a swine flu outbreak was today allowed to dock under emergency decree, as the number of confirmed cases there passed 250. Queensland state health authorities were forced to declare a public health emergency after management at the Brisbane city port refused to let the Pacific Dawn dock and release passengers. State health minister Paul Lucas signed an emergency decree forcing the port to allow the P&O liner to berth at the Portside Wharf, AAP newswire reported.

"The order gave us the power to override them and allow the ship to dock," a spokeswoman for Mr Lucas said. The Pacific Dawn has been at the centre of a spike in the number of Australian swine flu cases after 2,000 passengers last weekend walked free from the ship despite a suspected swine flu outbreak on board. Scores of guests have since tested positive for the virus, and are believed to be behind its rapid community spread, with cases jumping from 14 to 254 in just one week.

The ship was turned away from the Whitsunday Islands and northern tourist port of Cairns this week, after three crew fell ill with the A (H1N1) influenza with a fresh group of 2,000 passengers on board. Only 150 Queensland residents were allowed to disembark today at Brisbane, after the state invoked strict quarantine powers banning non-residents from entry. Seven passengers who were tested for swine flu were cleared, but all those who left the ship were required to wear masks and be examined by a nurse, officials said.

Anyone showing flu-like symptoms was swabbed and offered a course of antiviral drug, and 83 passengers who disembarked were ordered to join thousands of other Australians in self-quarantine for seven days. The Pacific Dawn has sailed on to Sydney, where the chief medical officer was today given tough new powers to enforce quarantine with police assistance, and extend isolation periods to up to 14 days.

* 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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