Republican politicians and Texas Governor Greg Abbott muscled sweeping new voting restrictions through the state legislature last year. AP
Republican politicians and Texas Governor Greg Abbott muscled sweeping new voting restrictions through the state legislature last year. AP
Republican politicians and Texas Governor Greg Abbott muscled sweeping new voting restrictions through the state legislature last year. AP
Republican politicians and Texas Governor Greg Abbott muscled sweeping new voting restrictions through the state legislature last year. AP

Texas primary tests Republicans' rightward shift as midterms begin


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Republican Texas Governor Greg Abbott will try to hold off challengers on his right flank on Tuesday to set up a likely November election against Democratic former congressman Beto O'Rourke as the state holds the first nominating contest of the US midterms.

Polls are open until 7pm local time on Tuesday, with early voting figures released by the Texas Secretary of State's office showing that over a million Republicans had voted early, compared with about 627,000 Democrats.

Jointly, that's less than 10 per cent of registered voters, a sharp drop from the 2020 elections, during which there was a 57 per cent turnout in early voting. Experts interpret early voting as a sign of enthusiasm.

Voters will also pick their parties' nominees for the US House of Representatives and other statewide offices in primary elections that will provide the first test of a wave of new restrictions on voting passed in response to former president Donald Trump's false claims of election fraud.

The results will offer clues about the mood of American voters who decide on November 8 which party will control Congress for the rest of President Joe Biden's four-year term in office.

The voting comes the same day that Mr Biden delivers his annual State of the Union address.

Midterms typically serve as a referendum on the sitting president and Republicans are favoured to win a majority in at least one of the two chambers of Congress that Democrats control by razor-thin margins.

Doing so would allow them to block Mr Biden's legislative agenda and to launch potentially damaging investigations into his administration.

Texas's Republican attorney general, Ken Paxton, is running for a third term, despite his pending 2015 indictment for securities fraud. Mr Paxton has denied any wrongdoing and has been endorsed by Mr Trump.

His Republican opponents include firebrand US Representative Louie Gohmert, Land Commissioner George P Bush, the grandson of former president George H W Bush, and former state Supreme Court justice Eva Guzman.

Under Texas law, if no candidate exceeds 50 per cent of the vote, the two candidates who receive the most votes advance to a run-off election on May 24.

Republican politicians and Mr Abbott muscled sweeping new voting restrictions through the state legislature last year over objections from Democrats and civil rights groups. In the past few weeks, elections officials in several counties have reported an unprecedented number of rejected mail-in ballots due to new identification requirements.

Mr Abbott's most notable opponents, former Texas Republican Party chairman Allen West and former state senator Don Huffines, lag far behind; polls suggest Mr Abbott is likely to avoid a run-off altogether.

The governor secured Mr Trump's endorsement last summer and has nearly $50 million in campaign funding.

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Iran v Uzbekistan, 8pm
N Korea v UAE, 10.15pm
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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.”

Updated: March 01, 2022, 10:52 PM