Tiny possum found on Australia's Kangaroo Island for first time since bushfires


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One of the smallest possums in the world was found on Australia's Kangaroo Island for the first time since most of its habitat was wiped out in devastating bushfires.

The little pygmy possum found by conservation group Kangaroo Island Land for Wildlife weighs less than 10 grams.

Ecologists had feared that the possum population, which was under threat before the fires, may have been effectively wiped out when almost half the island was burnt in the 2019-2020 bushfire season.

This capture is the first documented record of the species surviving post-fire

"This capture is the first documented record of the species surviving post-fire," fauna ecologist Pat Hodgens told Guardian Australia. "The fire did burn through about 88 per cent of that species' predicted range, so we really weren't sure what the impact of the fires would be, but it's pretty obvious the population would have been pretty severely impacted."

Until their bush habitat regenerates, the remaining population of pygmy possums is exposed to an increased threat from predation, especially by introduced species such as feral cats.

The heartening discovery comes as Australia braces for the approaching southern hemisphere summer - and, with it, another bushfire season.

Last summer's fires, which Prime Minister Scott Morrison called Australia's "black summer", killed 33 people and billions of native animals.

The prolonged bush fire season was fuelled by three years of drought, but this year the risk is from grasslands after the prolific growth of vegetation helped by good rains in early spring.

"Grass might be greener in the area where you are right now, but it won't take long for it to dry out once the heat of summer starts to appear," said Richard Thornton, chief executive of Bushfire and Natural Hazard Co-operative Research Centre.

Australia's fire season usually runs from late southern hemisphere spring through summer.

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.”

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