Macaria Gonzalez lost 11 relatives during a landslide at the village of Santa Apolonia in the Guatemalan province of Chimaltenango.
Macaria Gonzalez lost 11 relatives during a landslide at the village of Santa Apolonia in the Guatemalan province of Chimaltenango.

Storm death toll rises in Central America



GUATEMALA CITY // Flooding and landslides from the season's first tropical storm have killed at least 150 people and left thousands homeless in Central America, officials said. Dozens of people were missing and emergency crews struggled to reach isolated communities cut off by washed-out roads and collapsed bridges caused by Tropical Storm Agatha. The hardest-hit region was Guatemala, where officials reported 123 dead and at least 90 missing. In the department of Chimaltenango - a province west of Guatemala City - landslides buried dozens of rural Indian communities and killed at least 60 people, Governor Erick de Leon said.

"The department has collapsed," Mr de Leon said. "There are a lot of dead people. The roads are blocked. The shelters are overflowing. We need water, food, clothes, blankets - but above all, money." In the tiny village of Parajbei, a slide smothered three homes and killed 11 people. "It was raining really hard and there was a huge noise," said Vicente Azcaj, 56, who ran outside and saw that a hill had crumbled. "Now everyone is afraid that the same will happen to their homes."

Volunteers from nearby villages have worked non-stop since Sunday to recover the bodies in Parajbei. Yesterday they found the last two: brothers, aged four and eight, who were buried under tons of dirt, rocks and trees. As a thank you, rescuers got a plate of rice and beans from the mayor of nearby Santa Apolonia. "It's a small thing, but it comes from the heart," Tulio Nunez told them through a translator.

Mr Nunez said he worried about the well-being of survivors in the area because landslides blocked roads and broke water pipes. "They don't have anything to drink," he said. In total about 110,000 people were evacuated in Guatemala. Thousands more fled their homes in neighbouring Honduras, where the death toll rose to 17 while meteorologists predicted three more days of rain. Two dams near the capital of Tegucigalpa overflowed into a nearby river and officials warned people to stay away from swollen waterways.

"The risk is enormous," Mayor Ricardo Alvarez said. In El Salvador, 11,000 people were evacuated. The death toll rose to 10 and two others were missing, president Mauricio Funes said last night. Landslides affected about 95 per cent of the country's roads, but most remained open, transportation minister Gerson Martinez said. He said 179 bridges had been wrecked. The Lempa River, which flows to the Pacific, topped its banks and flooded at least 20 villages, affecting some 6,000 people, said Jorge Melendez, director of the civil protection agency.

Officials warned that the Acelhuate River, which cuts through San Salvador, was running at dangerously high levels and threatened to spill over into the capital's streets. Mr Melendez said classes would be suspended today in all primary and secondary schools and public and private universities across El Salvador. Agatha made landfall near the Guatemala-Mexico border on Saturday as a tropical storm with winds up to 75 kph. It dissipated the following day over the mountains of western Guatemala.

Rescue efforts in Guatemala have been complicated by a volcanic eruption on Thursday near the capital that blanketed parts of the area with ash. * AP

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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.”

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