AD200910706259984AR
AD200910706259984AR

Blood and treasure



The United States is the world's number one supplier of blood plasma - a precious substance that enables medical miracles. Aram Roston reports from Brownsville, Texas, one of a handful of border towns where plasma collection facilities are attracting a steady stream of impoverished Mexicans with nothing to sell but their blood

One Friday morning earlier this month, Geraldo Castillo climbed off the bus in Matamoros, Mexico, near the bridge that crosses the Rio Grande and leads into the United States. Just months ago Castillo, 46, lived a solidly middle class life in Mexico with his wife and two teenagers, but now he was impoverished and desperate. Last year, when he heard a report on a Matamoros radio station about companies on the US side of the border willing to pay Mexicans for donating blood plasma, he thought he'd never have to do such a thing. In December, however, he was laid off from his job supervising data entry operations at a construction company, another casualty of Mexico's economic collapse. He's been looking for work ever since. "I look and I look and I look," he said. "There is nothing. But we have to eat." Castillo is a heavy man who moves slowly, and his small wire-rim glasses contrast with his bulk. He pushed his way through the metal turnstile on the Mexican side of the border, then walked across the bridge, high over the sluggish brown waters of the Rio Grande. On the American side of the bridge, he entered the sterile, air-conditioned indoor facility, where pedestrians formed a single-file line. A border agent examined his visa, which allowed Castillo to enter the US briefly for business or tourism, and then he stepped out into the sleepy town of Brownsville, Texas - the most impoverished city in America, according to the US Census Bureau. After entering the United States, Castillo didn't have to walk far to sell his plasma. A few hundred feet up International Boulevard from the border, the IBR Plasma building sits on Washington Street, across from a Duty Free shop. The plasma centre still looks very much like the bulk second-hand clothing store it used to be, though long white vertical blinds now hide what goes on behind its windows. Inside, the waiting room is divided into two sections marked by sheets of paper taped to the wall: one for "new donors" and another for "return donors". This was Castillo's first visit, which meant he could make $30 - about 400 Mexican pesos. Signs in Spanish and English offered an additional $10 to those who recruited other donors. The United States is the world's leading exporter of human plasma - providing about 70 per cent of global supplies, the biggest player in what is now a multibillion dollar business. In recent years, nondescript plasma collection centres have sprung up in dusty towns all along the US-Mexico border: in Laredo, Texas, across the border from the drug-war battlefield of Nuevo Laredo; in Eagle Pass, Texas; in Yuma, Arizona. Here, giant for-profit companies pump blood plasma from the veins of paid donors - many of them poor Mexicans with nothing left to sell but their blood.

Human plasma is the transparent yellowish liquid component of blood - what is left behind when the blood cells that float in it are stripped away. "Plasma contains all these proteins which make life possible. It is incredibly important," explained Dr Harvey G Klein, who heads the department of transfusion medicine at Johns Hopkins. It is used to manufacture a series of incredible life-saving products, critical to the treatment of haemophilia, immune deficiencies, burns and other illnesses. After it is collected from donors, plasma is processed - "fractionated", in the jargon of the trade: massive vats, sloshing with 30,000 litres of the stuff, are used to separate the liquid into distinct proteins. Fractionated plasma products are used to treat familiar ailments like tetanus, rabies and chickenpox. Intravenous immunoglobulin (IVIG), which is prescribed to treat a variety of immune deficiencies, as well as neurological diseases like multiple sclerosis, is currently being tested as a treatment for Alzheimer's disease. IVIG currently costs about $70 per gram - twice its weight in gold. No one doubts the utility of blood plasma in modern medicine, but critics of the plasma industry are quick to point to the uncertain ethics involved in harvesting blood from impoverished donors who cross the border to sell their plasma. "We have ethical issues with them bleeding Latin Americans," says Corey Dubin, an outspoken US activist and a frequent critic of the blood banks and plasma companies. Dubin, who has haemophilia, must inject Factor VIII - a blood-clotting agent derived from plasma - once or twice a week. (One month's supply can cost about $40,000.) But bad injections infected him with HIV and hepatitis - back in the days before plasma was treated to kill these viruses - and he now heads a group called the Committee of Ten Thousand, named for the estimated number of those infected by contaminated blood products. "They are collecting plasma basically in the free trade zone, one of the poorest and most polluted strips of the land in North America," he told me, with aggravation in his voice. "They are a captive, poverty-stricken population. And we have real issues with that. To me it says a lot about captive populations. You've got poverty. You've got health issues, and you are bleeding them. I mean: it kind of boggles our minds."

Castillo told me that, when his name was finally called, he was taken to a private room, where a female technician took his medical history and told him they would test his urine and his blood for sugar levels, HIV and hepatitis. She told him how it would be perfectly safe for him: as long as he drank plenty of fluids and ate well, he could give two times a week. He would, as promised, get $30 for this visit, and $40 the next time, so long as he came back within seven days. The human body, scientists say, can replenish its plasma much more quickly than its red blood cells, and plasma collection companies encourage repeat visits, since those donors have already been tested and screened. Castillo lay in the big soft chair, he said, while they inserted the needle and his blood started pumping out. It was cycled into a machine that spun the red cells from the liquid, as if squeezing whey from curds. The whey, the watery plasma, was stored in a big plastic bag, while the red blood cells were periodically reinjected into his arm. While he laid there, he later told me, he wondered about what his plasma was really worth - and where it would end up. Castillo is an educated man with a degree in business administration; before coming to Brownsville he had done some research and found, among other things, that in Mexico donating plasma for money is illegal - as is the case in much of the rest of the world. Business these days in Brownsville is especially grim: the general recession has taken its toll, but so have reports of continued drug-war violence just over the border and the outbreak of swine flu: the first person killed by the flu in the United States was a Mexican toddler who had come to visit relatives in Brownsville. Leaving the IBR centre where Castillo sold his plasma, I walked a block and a half to the east - past stores selling used clothing in bulk - to another clinic equally close to the border. This facility is run by a company called Biomat, a subsidiary of a massive Spanish multinational firm called Grifols. (Slogan: "What matters most: People.") Inside the waiting room, a comfortably air-conditioned area with two-toned walls, a uniformed security guard stood watch as about 60 people waited in rows of chairs. Almost all were Mexicans from across the border, but few wanted to talk. Fernando Martinez, a 32-year-old Mexican national who still had a bandage on his arm as he left the centre, told me he had been a semi-skilled worker - operating an injection-moulding machine - at a maquiladora, one of some 3,000 factories located just over the border in Mexico, until he was laid off abruptly in October 2008. Martinez, who is married with two children, has been selling his plasma ever since. He has a short wiry build and the erect posture of a horseman. He came dressed for his donation that day in a somewhat flashy striped shirt and tan slacks, and he listened to music on an MP3 player. Martinez says by now he's quite comfortable donating his plasma - he's been doing it weekly for eight months. He explained the maths to me, holding one finger after another to make his point. He makes $70 a month at Biomat, enough to support his family. Recently, he was offered work at another maquiladora, but at a salary equivalent to about $50. The contrast is a stark one: for a Mexican factory worker, selling plasma across the border is a more profitable trade than working - if you can even find a job to begin with.

When I called Grifols to learn more about the collection centre, I talked to a spokesman for the company, Chris Healey. "The health profile of those centres is on par with or better than the health profile of other centres in the country," he said. He told me the site had been open since at least 2003, when his company bought it, and that they were "absolutely not" targeting Mexican nationals who needed the money. "We do not target any specific geography," he said. Was it coincidence that the site was just a short walk from the border? I asked. "Coincidence is your word," he said. "It's not my word."

On June 2, the executives of the plasma industry gathered far from the Mexican border - in the plush lobby of a Marriott hotel in Washington, DC. Men in dark suits huddled for consultations around coffee tables, and then took the escalator up to the conference, sponsored by the Plasma Protein Therapeutics Association, or PPTA. The organisers handed out printed name badges as well as gift bags, flash drives, pens, notepads and breath mints labelled PPTA. Companies in the specialised blood industry laid out their wares: a company called Hemocue hawked its testing equipment; Medical Supplies of America gave away free bandages and antiseptic napkins; a Japanese company advertised its "Pore Diffusion Membrane Separator". The day's first panel of doctors and experts was called "Donor Epidemiology: The Cornerstone of Safety?" In other words: how critical is the health of a donor population to the safe supply of plasma? There was no mention of the collection sites on the Mexican border, but this is precisely the concern that has been raised by some experts and activists. The panelists seemed unworried: one speaker announced confidently that "there's been no case of confirmed transmission of viral load in 15 years". A heavyset executive from Biolife, a major plasma company that operates collection centres including ones along the border in Laredo and Eagle Pass, Texas, gave a presentation that suggested epidemiology was one leg of a "safety tripod" that relied on testing plasma and using hi-tech methods to render any viruses harmless. Plasma is big business, and in fact it is one of the few industries still booming amid the worldwide economic crisis. "Plasma is one of the strongest end-markets in medical technology," an analyst for Morgan Stanley wrote happily earlier this year, advising increased investment in plasma firms. For the plasma companies, the problem is not selling products - it is obtaining enough plasma. "Demand is strong and collections remain a bottleneck in the production process," according to the Morgan Stanley report, "as players are selling everything they can collect." There are not more than a handful of big players in the field: the industry, according to a recent filing by the US Federal Trade Commission, "operates as a tight oligopoly". A few of the biggest firms are European, but all of the companies collect the majority of their plasma in the United States. The big reason for doing so is that America still permits payments to plasma donors. The industry is tight-lipped about its statistics, but this year, according to Morgan Stanley's report, companies worldwide will collect about 20 million litres of plasma - 14 million litres of which come from America, or enough to fill five or six Olympic-sized swimming pools. The journal of the PPTA wrote in 2007 that there were 10 centres on the border, collecting more than a half million litres of plasma per year. The companies argues that the border sites are just as safe as those elsewhere in the country, and the US Food and Drug Administration, which regulates the industry, generally agrees. But even within the industry there have been other questions about the practice of operating facilities on the border. The National has obtained a 2007 letter to the PPTA from one huge company, complaining that border plasma collection "compromises the fundamental ethics of our business and negatively impacts donors, patients and the industry itself". The company even threatened to quit the trade association - but since then the internal debate has quietly subsided.

One issue that was not broached at the PPTA conference was the health and safety of using paid donors. In the US, as mentioned above, paying for plasma is taken for granted. Whole blood donations are generally collected by non-profit organisations like blood banks, while "source plasma" - the kind manufactured into medicines - is collected by for-profit firms. In decades past, American college students in need of quick cash would trudge off to the local plasma centre, textbook in hand. But Corey Dubin, of the Committee of Ten Thousand, notes that other aspects of the industry's past haven't been so idyllic: plasma companies, he says, routinely set up operations in the poorest areas of towns. "The history of paid donors," he pointed out, "is not a good one. The Los Angeles plasma centre used to be right on Los Angeles Street, right on skid row." Since the early 1990s, plasma has been treated to kill known viruses, and the industry says screening, testing and technology makes plasma products safe. But around the world there has been a vigorous campaign in the past few years against remunerating plasma donors, in line with the goals of the World Heath Organization, which in 2005 approved a push against paid donations. "The provision of blood, blood components and plasma derivatives from voluntary, non-remunerated donors should be the aim of all countries," it said. Harvey Klein, the transfusion specialist, explains there are two concerns at work: the first is the ethical issue of paying for any body part or tissue, even if no harm is done. The second, he said, is safety of the blood or plasma products. "Going back from three decades or more we know that volunteer donors are statistically the safest in terms of exposure to contagious agents. There really is good data. The fact is that paid donors are less safe." According to a 1998 report to congress by the US General Accounting Office, "paid plasma donors are over one and a half times more likely to donate potentially infectious units". But that disparity could be reduced considerably, the report noted, by using only repeat paid donors, whose blood could be tested with each visit. Why are paid donors more likely to provide contaminated blood? There are various theories, but the predominant one suggests that if someone is desperate for money, they will be less likely to reveal their medical history, or any high-risk behaviours, than a volunteer donor. Many European countries don't permit paid plasma donations at all. In England there are basically no plasma donors at all, because of the potential risk of mad cow disease; in 2002, Britain's National Health Service spent roughly 50 million pounds to purchase an American plasma collection company, DCI Biologicals, to ensure no interruption to the country's future supply of plasma products. The United Arab Emirates recently became the first country in the Gulf region to ban paid donations - chiefly for safety purposes, according to Dr Amin al Amiri, who oversees the Sharjah Blood Transfusion and Research Centre. In a telephone interview, he says that there is indisputable evidence that donations from volunteers are safer. "We say: 'Safe donors will give you safer blood and safe plasma. And the safe plasma will give you a safe plasma product.'" Back in Washington at the PPTA conference, right before the lunch break, I sat down with two officials from the trade organisation in the corner of the meeting room, to ask them about the ethical and safety issues associated with compensation for plasma donors. Gordon Naylor is an executive of CSL, the Australian plasma giant, and is a PPTA official too. "I think ethics is very much in the eye of the beholder," he told me. "It's about people's own value systems. In all cases of the donors we work with, they are remunerated, but it is an entirely voluntary process. These people are making a free choice as to what they do. The question as to whether its unethical is something you would have to ask them!" he pointed out, with a slight laugh. The PPTA also makes a semantic distinction: companies do not actually pay for the plasma, but for the commitment of time required from the donor. Joshua Penrod, an earnest looking man with a goatee, is vice president of the PPTA. "You have a significant commitment of time. We are talking hours and hours. And that is what the donors are compensated for. It is because of their time." But Harvey Klein says that can be "a convenient fiction", particularly when it comes to Mexican donors. "When a developed country is paying citizens of a developing country for their plasma," he said, "I think people don't see it as compensating them for their time." Dr Robert Dracker has a practice in upstate New York that involves quite a bit of infusion therapy for patients who need plasma products. He is a strong supporter of compensating donors for their travel expenses and time, but he remains sceptical about the motives of collecting plasma at the border. "I could see that this whole thing was initiated by the fact that they thought they could go across the border, bring people over, pay them next to nothing, and get a lot of service," he said. "And we could make up any scenario we want, but that is the reason." He raises other concerns: how much responsibility are plasma companies willing to take for their non-US donors, who may need follow up care? "You are really taking advantage of these people. I mean you can say you've got their consent, they've been informed of what they are doing, et cetera, but they need the money! These are people coming from Mexico who may have problems with access to physicians or poor health care, you have to make sure that they are getting fluids, eating properly, and have to make sure they get access to health care." The binational United States-Mexico Health Commission, established in 2000, contends that rapid population growth in the border region has put "further pressure on an already inadequate medical care infrastructure, which further decreases access to health care.... The large and diverse migrant population increases the incidence of communicable diseases such as HIV/Aids and tuberculosis, as well as chronic illnesses such as diabetes, certain cancers and hypertension." But there is a certain irony in the international campaign to end paid plasma donations: as Klein points out, almost all of the countries that ban paid donors still buy plasma products from the United States. "The irony," he told me, "is you can have a policy or a law that prohibits paid donors but they will purchase plasma that is from paid donors. They buy finished product that comes from paid donors. In countries like the Emirates, where paying for plasma is illegal, demand still requires the purchase of blood products harvested from the veins of people like Geraldo Castillo and Fernando Martinez. "We are buying the fractionated products," said Dr al Amiri, who oversees the blood supply in the UAE. "There is no choice. This is what's available in the world."

For now the collection centres in Brownsville - and elsewhere along the 3,000 kilometre US-Mexico border - carry on, and the steady stream of Mexican donors shows no signs of diminishing so long as the economic situation makes blood donation more profitable than paid labour. Julio, a young man I met in Brownsville, asked that I not use his last name so that his middle-class parents in Mexico don't learn that he survives solely by selling plasma. He has no other job and, he says, no other way to make a living, but selling plasma covers his expenses in Matamoros, where he shares the cost of renting an apartment with his sister. He's a fairly tall gangly lad of 25, slightly stooped and thoughtful. He is fully aware of the odd nature of his current "occupation" - which began more than a year ago, when he was in his last semester of a bachelor's degree in business at the Instituto de Ciencias y Estudios Superiores in Matamoros. He couldn't pay his tuition or buy books, he says, and he was about to quit school when a friend told him about a "good chance for making money" across the border. For Julio, however, this was not easy money: he'd had a phobia since childhood about the sight of blood. "It really freaked me out," he told me, standing in front of the IBR collection centre. "Maybe that's why I didn't study medicine," he said with a grin. But he needed the money desperately - for school, for food, for rent - so he began to research plasma donation. "I Googled everything," he said. "I Googled the risk. I tried to learn everything. I have a phobia for blood so I checked everything." And then, one Friday, he swallowed his disgust, walked the 10 short blocks from his apartment to the border crossing, and went straight to IBR. He'd been to Brownsville plenty of times, but he had never noticed the plasma centres. "I looked down," he said, "but I had to look away. You lie there; the blood comes out of your arm. There's a machine. The plasma leaves and the red blood comes back to you." Julio graduated from college in May. He hasn't found a job since, so he continues to cross the border to sell his plasma. "I'd rather be working," he told me, with a somewhat sad smile.

Aram Roston is the author of The Man Who Pushed America to War: The Extraordinary Life, Adventures, and Obsessions of Ahmad Chalabi.

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

What drives subscription retailing?

Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.

The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.

The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.

The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.

UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.

That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.

Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.

The rules of the road keeping cyclists safe

Cyclists must wear a helmet, arm and knee pads

Have a white front-light and a back red-light on their bike

They must place a number plate with reflective light to the back of the bike to alert road-users

Avoid carrying weights that could cause the bike to lose balance

They must cycle on designated lanes and areas and ride safe on pavements to avoid bumping into pedestrians

Brief scores:

Toss: Sindhis, elected to field first

Pakhtoons 137-6 (10 ov)

Fletcher 68 not out; Cutting 2-14

Sindhis 129-8 (10 ov)

Perera 47; Sohail 2-18

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO

Tottenham Hotspur 1
Kane (50')

Newcastle United 0

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

The specs

Engine: 2.0-litre 4-cyl, 48V hybrid

Transmission: eight-speed automatic

Power: 325bhp

Torque: 450Nm

Price: Dh289,000

The%20specs%3A%202024%20Mercedes%20E200
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Election pledges on migration

CDU: "Now is the time to control the German borders and enforce strict border rejections" 

SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom" 

THE BIO

Bio Box

Role Model: Sheikh Zayed, God bless his soul

Favorite book: Zayed Biography of the leader

Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet

Favorite food: seafood

Favorite place to travel: Lebanon

Favorite movie: Braveheart

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

THE BIO

Favourite author - Paulo Coelho 

Favourite holiday destination - Cuba 

New York Times or Jordan Times? NYT is a school and JT was my practice field

Role model - My Grandfather 

Dream interviewee - Che Guevara

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.”

The Perfect Couple

Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

Creator: Jenna Lamia

Rating: 3/5

Racecard
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Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

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