Cleric demands execution of 'rioters'


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A hardline Iranian cleric has called for the execution of "rioters" in the latest sign of the authorities' determination to stamp out opposition to the June 12 presidential election. Iran's top legislative body, the Guardian Council, said it had found no major violations in the election, which it called the "healthiest" vote since the 1979 Islamic Revolution. The council had already rejected a call for the annulment of the vote by the moderate former prime minister Mir Hussein Mousavi, who has led mass protests since he was declared a distant second in the election behind the incumbent president Mahmoud Ahmadinejad.

"I want the judiciary to ... punish leading rioters firmly and without showing any mercy to teach everyone a lesson," Ahmad Khatami told worshippers at Tehran University. Iranian state television said on Thursday eight Basij militiamen were killed by "rioters" during the protests. State media previously said 20 people were killed in the marches. Iranian authorities have accused Mr Mousavi of being responsible for the bloodshed, while the moderate former prime minister says the government is to blame.

Ayatollah Khatami, a member of the Assembly of Experts, said the judiciary should charge the leading "rioters" as being "mohareb" or one who wages war against God. "They should be punished ruthlessly and savagely," he said. Under Iran's Islamic law, punishment for people convicted as mohareb is execution. Mr Mousavi's supporters plan to release thousands of balloons today with the message: "Neda you will always remain in our hearts", in memory of the young woman killed last week who has become an icon of the demonstrations.

The authorities have used a combination of warnings, arrests and the threat of police action to drive large demonstrations off Tehran's street since Saturday with small gatherings dispersed with tear gas and baton charges. Seventy professors were detained after meeting Mousavi and his campaign manager was among many arrested. The professors were released on Thursday. The 12-man Guardian Council's statement leaves little scope for more legal challenges, short of an attack on the position of Supreme Leader Ayatollah Ali Khamenei, who has expressed strong support for Mr Ahmadinejad.

"The Guardian Council has almost finished reviewing defeated candidates' election complaints ... the reviews showed that the election was the healthiest since the revolution ... There were no major violations in the election," said Abbasali Kadkhodai, a spokesman of the council. The former president Akbar Hashemi Rafsanjani, a Mousavi ally, chairs the Assembly of Experts which has the constitutional power to depose Ayatollah Khamenei. The assembly has never tried to do so and Mr Rasfanjani is seen as unlikely to take such a radical step.

Group of Eight powers meeting in Trieste will issue a statement calling on Iran to settle the crisis soon through democratic dialogue and peaceful means. "We deplore post-electoral violence which led to the loss of lives of Iranian civilians and urge Iran to respect fundamental human rights including freedom of expression and ensured by the international treaties it has ratified," the final draft 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.”