The house in Casteldaccia, Sicily, where nine people were killed by flooding. ANSA via AP
The house in Casteldaccia, Sicily, where nine people were killed by flooding. ANSA via AP

Flooding in Sicily leaves at least 12 dead



Storms lashing Sicily have killed at least 12 people in torrential floods, Italian authorities said as the country's leader headed to the stricken Mediterranean island on Sunday. Divers pulled out nine of the victims from a home flooded by a rapidly swelling river in the countryside near Palermo.

State TV broadcaster RaiNews24 said the sole survivor of the flood that ravaged the home with water and mud was the owner, who had just stepped outside to walk the family dogs when the torrent hit on Saturday.

News reports said the man at first clung to a tree, then ended up on the roof of a nearby house. He used his mobile phone to call for help but it was too late for the others, who included a one-year-old baby, a three-year-old child and a teenager. The victims were from two families who had gathered in the country villa for the weekend.

A man's body was also found on a guardrail along a Palermo-area road after floodwaters swept away his car, Italian news reports said.

Across the island, in the town of Cammarata, near Agrigento, the fire department said its divers were working to recover the bodies of two people swept away while driving on a road near the flooding Saraceno River.

Also in Agrigento province, firefighters rescued 14 people from a hotel in the town of Montevago, which was threatened by floodwaters from the Belice River.

Agrigento, famed for the ruins of ancient Greek temples, is a popular tourist destination.

Elsewhere in Sicily, at least two other people were missing on Sunday after floodwaters swept away their cars, including a doctor heading to the hospital in the hill town of Corleone.

Other storms had battered northern Italy earlier in the week, killing at least 15 people, uprooting millions of trees near Alpine valleys and leaving several villages without electricity or road access for days.

In Casteldaccia, the hamlet where the river flooded the home in Sicily, neighbor Maria Concetta Alfano said she, her husband and their adult disabled daughter fled after barking dogs drew their attention to the rising waters in the Milicia River, the Italian news agency Ansa said. It quoted the husband, Andrea Cardenale, as saying he drove away as "water was up to the hood of the car."

A Sicilian prosecutor has opened an investigation to determine if any human error, such as inadequate drainage of the river, might have played a role in the deaths.

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

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.”

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia