Auction-house employees prepare gowns worn by the late Princess Diana for sale last week in London. Suzanne Plunkett / Reuters
Auction-house employees prepare gowns worn by the late Princess Diana for sale last week in London. Suzanne Plunkett / Reuters

Diana's dresses under the hammer



Ten dresses that once belonged to the late Diana, Princess of Wales are expected to fetch £800,000 (Dh4.44 million) when they are sold at auction in the United Kingdom this month. The gowns include the Victor Edelstein creation of midnight blue silk velvet that Diana wore in 1985 when she danced with John Travolta at a White House ball thrown by the president, Ronald Reagan. That particular number, which Diana wore when she was the most famous woman in the world, is forecast to go for £300,000.

The dresses are all in 1980s style with voluminous sleeves, boxy shoulder pads and lots of crushed velvet. Kerry Taylor Auctions, the organiser, described the March 19 auction as "fabulous and historic".

Other dresses for sale include the Mughal-inspired Catherine Walker pink silk evening gown Diana wore on her 1992 state visit to India, expected to fetch £120,000; and the Catherine Walker black velvet and beaded evening gown Diana wore for a Vanity Fair photo shoot with Mario Testino at Kensington Palace in 1997, valued at £70,000.

In 1997, her marriage over, Diana cleared out her wardrobe in preparation for her new life. It was her son, Prince William, then 15, who convinced her to put her dresses up for auction and give the proceeds to charity. The New York auction held by Christie's raised £2m.

The Florida socialite Maureen Dunkel bought 14 of the gowns for £500,000. When Diana died in a car crash just months later, the dresses soared in value.

Ms Dunkel set up a charitable foundation to preserve and display Diana's dresses. However, she racked up a considerable amount of debt doing so. She loaned some dresses to Kensington Palace for a while but the dresses were expensive to insure and attendance failed to meet expectations.

When the dresses returned to the United States, they ended up in places such as Walt Disney World in Florida and the Pittsburgh Home and Garden Show, according to the Daily Mail.

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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.”

If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.