US secretary of state John Kerry, centre, with Russian foreign minister Sergei Lavrov, left, and UN Special Envoy of the secretary-general for Syria Staffan de Mistura, right, hold a press conference after the International Syria Support Group meeting in Munich, Germany, Sven Hoppe / EPA
US secretary of state John Kerry, centre, with Russian foreign minister Sergei Lavrov, left, and UN Special Envoy of the secretary-general for Syria Staffan de Mistura, right, hold a press conference Show more

World powers agree to peace plan in Syria in a week’s time



MUNICH // Major powers agreed on Friday to implement a cessation of hostilities in Syria and to expand delivery of humanitarian aid to people caught up in the conflict, officials said.

US secretary of state John Kerry, speaking to reporters after a meeting in Munich that included Russia and more than a dozen other countries, said the target for implementing the nationwide cessation of fighting was a week’s time.

Mr Kerry said all participants had agreed that Syrian peace negotiations should resume in Geneva as soon as possible. He said the cessation would not apply to ISIL and other militant groups fighting in Syria.

British foreign secretary Philip Hammond said ending fighting could only succeed if Russia stopped air strikes supporting Syrian government forces’ advance against the opposition.

“If implemented fully and properly ... this [deal] will be an important step towards relieving the killing and suffering in Syria,” Mr Hammond said in a statement.

“A Western diplomatic source said, “We did not get a deal on the immediate end of Russian bombings, but we have a commitment to a process that if it works would change the situation.”

Russian prime minister Dmitry Medvedev on Thursday raised the spectre of an interminable conflict or even a world war if powers failed to negotiate an end to the fighting in Syria, which has killed 250,000 people, caused a refugee crisis and empowered ISIL.

The first peace talks in two years between belligerents in Syria collapsed last week before they began in the face an the offensive by President Bashar Al Assad’s forces, one of the biggest and most consequential of the five-year war.

Ministers at Thursday’s talks wrangled over three core issues: a gradual cessation of hostilities with a firm end date, humanitarian access to cities being besieged by both sides and a commitment that Syrian parties return to Geneva for political negotiations.

* 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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