Deadly attack in Kashmir ahead of India PM's trip



SRINAGAR, India // Militants opened fire on a military convoy in Indian Kashmir on Monday, killing four soldiers and wounding six others on the eve of a visit by Prime Minister Manmohan Singh, the army said.

The soldiers were attacked on the outskirts of Srinagar, the main city in Indian-controlled Kashmir, army spokesman Col Brijesh Pandey told AFP.

"We have received 10 casualties from the attack site at the military hospital, four of them were fatal," he said, adding that one of the six wounded is in a critical condition.

The attack came amid a high state of alert which had been imposed ahead of Mr Singh's arrival today for a two-day visit to the territory, his first since June 2010.

Security officials had earlier said that police and paramilitary forces were being deployed in strength across the region and additional check points had been erected along major highways.

"A high alert is there. We do face a threat from the militants," Abdul Gani Mir, Kashmir's police chief said.

Kashmir, a picturesque Himalayan territory, is divided between India and Pakistan by a UN monitored de facto border known as the Line of Control (LoC) but it is claimed in full by both.

More than a dozen armed rebel groups have been fighting Indian forces since 1989 for the region's independence or its merger with Pakistan.

Tens of thousands of people, mostly civilians have died in the fighting but armed violence has been on a steady decline since the early 2000s.

Security concerns were further raised yesterday when armed rebels struck in a busy commercial area in the heart of Srinagar, the region's summer capital, killing two policemen in a shoot-and-run incident.

The three main separatist groups opposed to Indian rule have called for a total shutdown for today to protest the visit of the prime minister.

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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.”