At regular intervals, the old woman would empty almost all the contents of the cup into a deep coat pocket.
At regular intervals, the old woman would empty almost all the contents of the cup into a deep coat pocket.

A full day's work - and a little bit of change



For passers-by on the Parisian Left Bank, the stooped old woman cut a tragic figure as she rested against an iron bollard, overdressed for a warm day with a helmet-style hat concealing her head and face, a long blue coat engulfing her tiny frame. Every so often, someone stopped and placed coins in the cardboard coffee cup she held unsteadily in her right hand. A few, having been stricken by conscience after walking on, returned - or sent a child - to do so. One or two men felt an impulse to give but most of those spurred into charitable action were women.

Watching from the terrace of a nearby brasserie, I found the spectacle pathetic and moving. The woman was rooted to the spot, as if ill or overcome by fatigue and hunger. But as I dug into my pockets for some loose change of my own, it dawned on me what was going on. This apparently sad, sickly casualty of a society with no place for a subclass of the lost and losing was, in fact, just another petit commerçant plying her trade.

The only real surprise is that it took me so long to work it out. I have long believed myself immune to false displays of suffering that are the stock in trade of professional beggars. On the London Underground, I cannot catch sight of a woman in rags with babe in arms without remembering that I once saw a dozen of more of her consoeurs boarding a train at the end of one of the lines in Lyon, obviously starting their shift and ready to fan out across the city's Metro system.

Had I not also heard stories of beggars completing the day's work and being collected from their anointed pitches by handlers driving expensive cars? But then, it is easy to forget the prevalence of organised begging if you live for any time in the UAE; indeed, someone who never left Abu Dhabi, for example, might not even be aware the practice exists. While waiting for the bill for lunch, I kept watching. She had two other tricks up her sleeve. At regular intervals, she would empty almost all the contents of the cup into a deep coat pocket, leaving just one or two coins to add to the impression of hopelessness. And occasionally, she would draw the back of one of her strangely large hands across her face as if, but probably not, wiping away tears.

I was not the only spectator to see through it. A passing French lady who noticed my reactions stopped to talk. We agreed that she was almost certainly a complete con woman, possibly of eastern European origin though this hardly mattered. Armed with this knowledge, the obvious next step was to pay for my meal and wander up the Rue Saint-André-des-Arts without another thought. But first there was something I had to do. I sank my hand back into my trouser pocket and found a euro or two to pop into her cup.

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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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Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

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