Pope Benedict XVI arrives in St Peter's Square for his final general audience on Wednesday. Franco Origlia / Getty Images
Pope Benedict XVI arrives in St Peter's Square for his final general audience on Wednesday. Franco Origlia / Getty Images
Pope Benedict XVI arrives in St Peter's Square for his final general audience on Wednesday. Franco Origlia / Getty Images
Pope Benedict XVI arrives in St Peter's Square for his final general audience on Wednesday. Franco Origlia / Getty Images

Pope bows out to warm applause


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VATICAN CITY // Pope Benedict bid an emotional farewell at his last general audience yesterday, saying he understood the gravity of his decision to become the first pontiff to resign in 600 years but that he had done it for the good of the Roman Catholic Church.

Addressing an estimated 150,000 people in St Peter's Square the day before he steps down, Pope Benedict said his crisis-hit papacy had included moments of joy but also difficulty when, "It seemed like the Lord was sleeping".

Sitting on an ivory coloured throne on the steps of St Peter's Basilica and frequently interrupted by applause from the crowd, the pontiff said: "There were moments when the waters were choppy and there were headwinds."

When he finished his speech the crowd, including many red-hatted cardinals, stood up to clap.

Pope Benedict will abdicate tonight and then cardinals begin consultations ahead of a conclave to choose his successor.

He said he had great faith in the future of a troubled Church, adding: "I took this step in the full knowledge of its gravity and rarity but with a profound serenity of spirit." Loving the Church meant "having the courage to take difficult and anguished choices, always having in mind the good of the church and not oneself", he said.

The pope said he is too old and weak to continue leading a Church beset by crises over child abuse by priests and a leak of confidential Vatican documents showing corruption and rivalry among Vatican officials.

A large crowd had flowed into the sprawling square since early morning for the midweek audience which is normally held indoors but was moved outside to accommodate faithful wanting their last glimpse of the pope.

Many in the crowd, which streamed into the square across the Tiber River and along nearby streets, held up banners thanking the pope and wishing him well. "We are all on your side," one banner said.

* Reuters

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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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