A hosepipe ban has been extended for parts of traditionally rainy England in spite of a spring of seemingly unending clouds and grey skies.
A ban already in force for Cornwall and north Devon now also covers large parts of the rest of Devon, South West Water said.
Despite April showers that have rarely seemed to stop, the water supply is suffering the effects of last year’s drought and an unusually dry February.
The 2022 heatwave led to drought for most of England. Devon, neighbouring Cornwall, and the Isles of Scilly — all in the South West region — and East Anglia, have not yet recovered.
The Devon hosepipe ban, announced on Tuesday, comes after the National Drought Group warned in February that England is “one dry spell” away from drought.
February was also the driest on record, with only 6 per cent of the 30-year normal amount of rain, experts said.
South West Water said it made the decision to replenish depleted water supplies.
It said that, while water levels were recovering from last summer, they were under “immense and increasing pressure”.
“Our region remains officially in drought and a temporary use ban (known as a hosepipe ban) has been in place for Cornwall and a small part of North Devon since August 2022,” South West Water said.
“Reservoir levels are recovering across Cornwall and Devon, but remain lower than this time last year. As a result of the low reservoir levels, the hosepipe ban is necessary.
“We recognise and appreciate our customers' efforts to reduce their daily water usage throughout this drought period.
“We ask that you continue saving water where you can, so that our water resources can recover sufficiently for the spring and summer ahead.”
The new ban, introduced on Tuesday, applies to the Roadford reservoir supply area, including Plymouth and Torquay.
It prevents customers from using hosepipes and sprinklers to water grass, clean their cars or fill pools.
South West Water's drought and resilience director David Harris said: “Despite our interventions and investments, and the fantastic efforts of our customers, the region's water resources are under immense and increasing pressure.
“Extending the hosepipe ban to parts of Devon is the responsible thing for us to do and going into the summer period is the right time to do it.”
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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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