Afghan elections scheduled for August



The Afghan president, Hamid Karzai, said today that presidential elections would go ahead on Aug 20, in an about-face on his decision a week ago to issue a decree for an April ballot. Mr Karzai told a press conference he accepted the election commission's decision, three days after the independent body called for the original August date to be kept. Mr Karzai, under huge pressure from the United Nations, the United States and other Afghan allies to support the commission's August date, caused a stir when he issued his decree calling for an April 20 ballot.

The commission had said staging elections in a matter of weeks was impossible given the overwhelming security problems in the insurgency-wracked central Asian country. Nearly five million people, 32 per cent of them women, are registered to vote in only the country's second ever presidential elections to be conducted under universal suffrage. Mr Karzai won a 55 per cent majority in the first at the end of 2004 but his popularity has been severely damaged by his failure to check rising violence and corruption levels.

The president initially objected to the August date because his five-year term expires on May 21 and the constitution states that the vote must be held 30 to 60 days before that date. "In January there was suddenly a disagreement (about the Aug 20 date) and the lower house passed a resolution calling upon me, as protector of the constitution, to implement the constitution," he said today. "Now some of our friends say the first decision is acceptable ... I respect and have accepted the decision of the electoral commission."

There is hot debate on the legitimacy of any power Mr Karzai may hold between May and August. The opposition has calling for the creation of an interim administration, but some analysts have suggested that declaring a state of emergency is a better solution. The election commission in January delayed the vote until August, saying it needed the time to prepare and wanted Nato military reinforcements on the ground to help secure the polls from Taliban attack.

Nato's top military officer, US General John Craddock, is seeking four extra battalions of troops to help provide security. Depending on the country it is drawn from, a battalion usually numbers between 800 and 1,200 troops. The United States recently announced the deployment of 17,000 extra troops, mainly to the south where the insurgency is at its worst, but those soldiers are unlikely to be fully in place until July, under current planning.

*AFP

Russia's Muslim Heartlands

Dominic Rubin, Oxford

In numbers: PKK’s money network in Europe

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

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

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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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Engine: 2.0-litre 4-cyl turbo

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7.30pm: Handicap (TB) Dh100,000 (T) 2,400m