Serbian President Aleksandar Vucic declares an election win in Belgrade, Serbia. EPA
Serbian President Aleksandar Vucic declares an election win in Belgrade, Serbia. EPA
Serbian President Aleksandar Vucic declares an election win in Belgrade, Serbia. EPA
Serbian President Aleksandar Vucic declares an election win in Belgrade, Serbia. EPA

President Aleksandar Vucic is big winner in boycotted Serbian election


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Serbian President Aleksandar Vucic on Sunday declared a landslide victory for his right-wing party in a parliamentary vote that was boycotted by much of the opposition.

Aleksandar Vucic told jubilant supporters that his Serbian Progressive Party won more than 60 per cent of the vote, or about 190 of the 250 seats in the Serbian Parliament.

The initial unofficial results indicate that Serbia will have virtually no opposition.

The president's allied Socialists are forecast to take 10 per cent of the vote and second place.

“I have been long in politics but I never experienced such a moment,” Mr Vucic said.

“I’m talking about a historic moment in which one party can find itself. We have won everywhere, where we have never been winning in the past.”

Sunday’s vote was the first national election in Europe to take place during the coronavirus pandemic.

The election, initially planned for April but postponed because of the coronavirus pandemic, came as Serbia is still reporting dozens of new cases each day after completely relaxing its strict lockdown rules.

While Serbian voters were not choosing a president on Sunday, Mr Vucic has dominated the campaign through the mainstream media he controls, denouncing and ridiculing critics.

He has denied claims of abusing his formal ceremonial powers as president by taking a leading role in the campaign.

The opposition groups who boycotted the election said there was a lack of free and fair voting conditions and a danger to public health.

But a number of smaller parties decided to run, saying the boycott would only sideline an already marginalised opposition.

Mr Vucic briefly served as information minister in the government of Slobodan Milosevic during the 1990s wars in the Balkans.

While he now says he seeks EU membership for Serbia, critics warn that democratic freedom has been eroded since his party came to power in 2012.

The president called on supporters to vote in large numbers to get a strong mandate for internationally mediated peace negotiations on the future of Serbia’s breakaway former province of Kosovo.

Turnout was lower than in previous elections.

A US-brokered Kosovo-Serbia summit is to be held in Washington on June 27, while EU officials have announced plans to restart Brussels-mediated negotiations.

Serbia has refused to recognise Kosovo’s independence and has the support of Russia and China in the dispute.

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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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