Thai troops pull back



Toops retreated from a disputed border zone today, a Cambodian general said, averting a possible military clash after Cambodia's prime minister issued an ultimatum to Thailand to withdraw by midday. The Cambodian army commander Brig Gen Yim Pim said all Thai troops had retreated and were back inside their camp about one kilometre from the contested territory. "The tense situation has now eased." Earlier, the Thai premier said he was not against the withdrawl but said details must first be agreed. Mr Somchai Wongsawat called an urgent meeting after his Cambodian opposite Hun Sen issued the deadline to remove about 80 soldiers he said had encroached onto their territory.

"Thailand is not opposed to a withdrawal, where each side moves back to avoid confrontation, but we propose that the detail of any withdrawal should be worked out by a joint committee," Mr Somchai said. "The joint committee would consult on how far the two countries must withdraw." Hun Sen's ultimatum came after talks between the Cambodian foreign minister and Thailand's foreign minister Sompong Amornviwat in Phnom Penh, which ended without a breakthrough in the three-month stand-off.

Sompong today appeared bullish, saying he thought should they should wait for Cambodian officials to cool down and insisting the disputed land near the ancient Cambodian Preah Vihear temple belonged to Thailand. "The problem now is not about withdrawing or not withdrawing - it's our territory. How can they tell us that it is their territory?" he said. "As soon as I returned, there was a report of a deadline. What can we do? We are in our own homeland, and they want us to evict us from our own home."

Tensions between the neighbours first flared in July. Tensions escalated into a military confrontation in which up to 1,000 Cambodian and Thai troops faced off for six weeks in a small patch of land, although both sides in August agreed to reduce troop numbers. *AFP/AP

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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. 

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.”