A 7.6-magnitude earthquake rattled Papua New Guinea on Sunday, damaging buildings, triggering landslides and killing at least five people, with several more severely injured.
Residents in northern towns near the epicentre reported intense shaking mid-morning, with cracks appearing in roads and the cladding of buildings.
Local member of parliament Kessy Sawang said at least two people had died in remote mountain villages, with four others airlifted to hospital in critical condition.
"There has been widespread damage," she said.
In nearby Wau, Koranga Alluvial Mining said three miners had been buried alive.
There are limited communications in the area, few government resources and very few paved roads, making assessment and rescue efforts difficult.
Small aviation companies and missionary groups were involved in airlifting some of the injured across the rugged jungle landscape.
"It's very difficult, the terrain, the weather. It's challenging," said Nellie Pumai of Manolos Aviation, which had transported one person out and was trying to return.
In the eastern highland town of Goroka, photographs showed window awnings falling off the crack-riven walls of the local university.
Hivi Apokore, a worker at the Jais Aben Resort near Madang on the north coast of Papua New Guinea, said the tremor was "very strong".
"Everything was like sitting on a sea — just floating."
The quake was felt as far away as the capital Port Moresby, about 480 kilometres away.
The US Geological Survey initially issued a tsunami warning for nearby coastal areas, but subsequently said the threat had passed.
Regardless, residents of coastal areas fled for higher ground after reporting that the sea level had suddenly dropped.
Prime Minister James Marape urged people to remain cautious.
Mr Marape said several regions had been affected but that the scale of damage and injuries was unknown.
"National and provincial disaster agencies, as well as leaders, have been asked to assess the damage and injuries to people and attend to these as soon as possible."
State-backed communications firm DataCo said it was experiencing "multiple service disruptions" to the operation of a domestic undersea communications cable as well as the PIPE Pacific Cable 1 that runs from Sydney to Guam.
The quake struck about 67km from the Eastern Highlands town of Kainantu at a depth of 61km, the US Geological Survey said.
Earlier on Sunday, the US Geological Survey also reported two strong earthquakes in the remote Mentawai Islands off the western coast of Indonesia's Sumatra island.
A 6-magnitude earthquake struck at a depth of 20km at about 6.10am local time (2.10am UAE), closely followed by a 5.7-magnitude quake at a depth of 10km minutes later.
There were no immediate reports of casualties or damage, but the tremor sent residents on the islands fleeing to evacuation centres set up last week following another earthquake.
The quake was also felt in the city of Padang, the capital of Western Sumatra province, where residents left their homes after the tremor shook buildings.
Papua New Guinea and Indonesia sit on the Pacific "Ring of Fire", causing them to experience frequent earthquakes.
In 2004, a 9.1-magnitude quake off the western coast of Sumatra island triggered a tsunami that killed 220,000 throughout the region, including about 170,000 in the country.
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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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