North Korea ready to fire more missiles



SEOUL // North Korea has deployed more than 10 missiles on its west coast for what appears to be an imminent launch, a South Korean newspaper said today, two days after the North fired two short-range missiles into the Yellow Sea. It would be an unprecedented test if the North fired all of the surface-to-ship and ship-to-ship missiles, but intelligence sources quoted by the Chosun Ilbo paper said they thought the North may launch five to seven of them.

The North has forbidden ships to sail in an area in the Yellow Sea until Oct 15 in preparation for the launch, an intelligence source told the paper. The North fired two missiles on Tuesday in routine military drills, South Korea's defence minister said yesterday. "If the North fires a large number of missiles, it would be difficult to see it as routine exercise," the source was quoted as saying.

A South Korean defence ministry official declined to comment on the report but said the government had no indications of unusual activities in the North. A senior US nuclear envoy visited the North Korean capital last week in a bid to convince the state to return to a disarmament-for-aid deal and halt plans to restart an ageing nuclear plant that makes bomb-grade plutonium. Washington is reviewing the discussions the US assistant secretary of state Christopher Hill held in Pyongyang to see if it can begin verifying statements the North made about its nuclear programme, an official in Seoul familiar with the talks said.

A US military commander played down any escalation of the threat posed by the North, which recent reports have said conducted engine tests this year at a new missile launch site. "We have seen no increased movement or military activity in North Korea, nor have we responded in any way with any military posture changes," Admiral Timothy Keating, commander of US forces in the Pacific, told reporters in Tokyo today.

The United States was keeping the area under close observation he said, but declined to comment on the missile reports. "Hypothetically, if North Korea were to fire off 10 missiles in short order, that would be very unusual," he said. North Korea has a history of timing its missile launches at periods of increased tension to show that it is ready to take a hard and defiant line, analysts say. North Korea fired seven ballistic missiles in July 2006 including a long-range Taepodong-2 off its east coast. Three months later, it conducted a nuclear test.

*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.”