A Libyan policeman in Tripoli helps a young man off a boat overflowing with migrants rescued from three boats which sank in a violent storm.
A Libyan policeman in Tripoli helps a young man off a boat overflowing with migrants rescued from three boats which sank in a violent storm.

Libya recovers bodies of drowned migrants



TRIPOLI // Libyan authorities have recovered the bodies of 100 migrants trying to reach Europe who drowned after their boat sank off the Libyan coast. "Seventy seven bodies of the migrants washed up in the beach west of Tripoli late on Tuesday and 23 more bodies were found between Sunday night and Tuesday," an official said. He and other officials believed the migrants were among 365 people who boarded the ship, which was supposed to hold only 75 people.

The migrants were Somalis, Nigerians, Eritreans, Kurds, Algerians, Moroccans, Palestinians and Tunisians, officials said. The ship was one of four migrant boats which had sailed from Libya at some time between Saturday and Sunday, apparently heading to Italy, Libyan officials said. Libyan coastguards had rescued 350 migrants, many of them women and children, after their boat broke down on Sunday near a Libyan offshore oilfield.

"As for the fate of the two remaining boats, we have information that one had reached Italy and the latest information we had about the other boat was it had left Libyan waters and was spotted close to Malta," a Libyan official added. There are an estimated 1 to 1.5 million African migrants in Libya, drawn by the need for unskilled labour, according to International Organisation for Migration (IOM).

Libya is both a transit and a destination country for migrants. Most take odd jobs to gather enough money to pay smugglers for the risky journey to Italy. IOM and Libyan officials say the new upsurge of illegal migration from North Africa might have been prompted by fears of migrants and people smugglers that Libya and Italy would step up a clampdown on illegal migration next month. Tripoli and Rome have reached an agreement on joint sea patrols to try to stem the flow of illegal migrants. The accord becomes effective on May 15.

*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.”