US drone strike kills five in northwest Pakistan


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PESHAWAR // A US drone strike killed at least five militants on Monday in a Pakistani tribal region where Islamabad launched a full-scale military offensive last year.

The strike targeted a Taliban compound in the North Waziristan, one of seven semi-autonomous tribal districts that border Afghanistan, and an area that has been a hub for Al Qaeda and Taliban militants since the early 2000s.

It was the fourth such strike this year.

Recent drone attacks by the US have raised speculation that Washington and Islamabad are coordinating their military efforts.

Pakistan however officially denounces the strikes as a violation of its sovereignty.

Observers say the military has given its tacit acceptance, pointing to a six-month halt in strikes last year while the government tried to negotiate peace with the Taliban.

“A US drone fired two missiles at a compound in Shahi Khel neighbourhood of Shawal killing five terrorists,” a senior security official said.

Washington pressed Islamabad for years to wipe out militant sanctuaries in North Waziristan, which have been used to launch attacks on Nato forces in Afghanistan.

The Pakistani military launched a major offensive in the area in June and says it has killed more than 1,800 militants so far, with 126 soldiers having lost their lives.

The latest strikes came after Pakistan ramped up its anti-terror campaign in the wake of a December 16 attack on an army-run school in Peshawar that killed 150 people, 134 of them children.

It was the worst single assault in the country’s history.

Prime minister Nawaz Sharif has announced the establishment of military courts for terror-related cases in order to accelerate trials, and has also lifted a six-year moratorium on the death penalty, reinstating it for terrorism-related cases.

Drone strikes in Pakistan have been gradually decreasing from a high in 2010, when there were 128.

Last year, 25 attacks in Pakistan killed up to 186 people, including two civilians, according to the Bureau of Investigative Journalism, which tracks drone strikes using media reports.

* Agence France-Presse, with additional reporting from 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.”

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