This October was the seventh warmest on record due to mild temperatures, while slightly above-average rainfall did little to change what has been an extremely dry year so far.
Temperatures during the first 10 months of 2022 make the year the warmest on record so far, the UK's Met Office said.
There were higher-than-usual temperatures across the southern half of the UK during October and mercury climbed to almost 23°C in London as the month came to an end.
A temperature of 22.9°C was recorded at Kew Gardens in the west of the capital on Saturday.
Provisional Met Office statistics show that the mean temperature for October was 11.5°C, with a particularly balmy end making the month the seventh-warmest October in a series which goes back to 1884.
The warmest year on record for the UK was 2014.
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The Met Office will continue to monitor temperature statistics for November and December to see how 2022 fares.
The weather service said the temperature statistics mean that six of the 10 warmest Octobers on record for the UK have happened since the turn of the century, “as the influence of human-induced climate change can be seen across long-term recorded data”.
“What has been particularly unusual about this October is the persistent above-average temperatures — particularly across the southern half of the UK,” said Michael Kendon, of the National Climate Information Centre.
“Maximum temperatures have been above average on every day of the month — always reaching the mid-teens.”
He said a south-westerly airflow brought warm air over Europe to the UK and that above-average temperatures in France and Spain were also partly responsible for the warmth of the air in the UK late in October.
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The slightly above-average rainfall for the UK has not made much of a dent in what has been a dry year, the Met Office said.
So far, East Anglia has seen only 328 millimetres — 52 per cent — of its average rainfall for the whole year, rather than the expected 83 per cent by this stage of 2022.
Counties including Norfolk, Suffolk, Kent and East Sussex have had only half their annual rainfall, the forecaster said.
UK heatwave sees highest-ever recorded temperatures — video
The UK’s long-term average rainfall is currently at 67 per cent — 780mm.
For England, the level is at only 60 per cent (523mm), with the same — 60 per cent or 881mm — for Wales.
Northern Ireland exceeded its long-term average rainfall by more than 50 per cent, while Scotland had 16 per cent more rainfall than average, with 196mm falling.
“There’s still a lot of rainfall needed to replenish our water resources after the incredibly hot and dry summer,” said senior director of policy, research and campaigns at the Consumer Council for Water Mike Keil.
“Saving water is always a good thing to do, whatever the weather — it helps people save money, protects the environment and reduces carbon emissions.”
UK heatwave: London one of the hottest places on Earth — video
In terms of sunshine, the UK received 14 per cent more than average, with 105 hours in October.
England had 129 hours of sunshine, while Wales had 104 hours — both above average.
But Scotland and Northern Ireland had below average sun, with 69 hours and 73 hours respectively.
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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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