Leaders of US, India, Japan and Australia vow vaccine increase


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The leaders of the US, India, Japan and Australia wrapped up their first virtual summit, vowing to promote security in the Indo-Pacific, expand efforts to produce Covid-19 vaccines and co-ordinate efforts on issues including climate change and disaster relief.

A joint statement Friday from the so-called Quad included shared goals such as ensuring North Korea denuclearises and holding an in-person meeting of the four nations’ leaders by the end of 2021 – in itself a sign of confidence in expanding vaccine access.

Towards that goal, the group agreed to support efforts to ramp up vaccine manufacturing in the region. Specifically, that includes an effort to bolster vaccine output in India by as many as a billion doses by 2022. To help reach that target, Japan is in talks to provide concessional yen loans for India, according to a fact sheet provided at the meeting’s end.

“We are committed to leveraging our partnership to help the world’s most dynamic region respond to this historic crisis, so that it may be the free, open, accessible, diverse and thriving Indo-Pacific we all seek,” the statement said.

The gathering of the four leaders come as all of them have their particular tension with a country that was not present: China.

It was not mentioned in the final statement, but references to an “open” Indo-Pacific region and shared security interests leave little doubt that the meeting was also a show of unity against Beijing.

“The United States is committed to working with you, our partners, and all our allies in the region to achieve stability,” US President Joe Biden said at the start of Friday’s virtual gathering. The Quad, he added, was dedicated to “practical solutions and concrete results".

When asked about the meeting, Chinese Foreign Ministry spokesman Zhao Lijian called on countries to refrain from creating blocs. Exchanges between governments should create understanding and avoid targeting third parties, he said during a briefing in Beijing.

Australian Prime Minister Scott Morrison told the meeting the Quad could collectively address challenges including the pandemic and the environment. “We’ll do our share of the heavy lifting to ease the burden for us all,” he said.

On vaccines, Australia said it would provide $77 million to help nations in South-East Asia buy vaccines and help resolve problems with “last mile” delivery of the medicine. That’s on top of the $407 million it is already providing for vaccine coverage in Pacific Island nations and Timor-Leste, according to the fact sheet.

But India appeared to be the biggest beneficiary, with leaders vowing to help the world’s second-most populous nation ramp up vaccine production. Developing countries have been largely left behind in the race to vaccinate their populations, with the majority of the world’s early doses going to fewer than a dozen wealthier nations, including the US and the UK.

On climate change, the Quad nations agreed to establish a working group to promote low-emissions technology and help nations reach targets they agreed to as part of the Paris Climate Agreement.

Japanese Prime Minister Yoshihide Suga also said the recent coup in Myanmar was a topic of discussion.

“I expressed serious concerns about the situation in Myanmar and strong opposition to attempts by China to change the status quo in a one-sided fashion,” Mr Suga said.

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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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What: 11th edition of the Mubadala World Tennis Championship

When: December 27-29, 2018

Confirmed: men: Novak Djokovic, Rafael Nadal, Kevin Anderson, Dominic Thiem, Hyeon Chung, Karen Khachanov; women: Venus Williams

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