Democratic presidential candidate Senator Bernie Sanders holds a campaign event at La Poste in Iowa this week. Chip Somodevilla / Getty Images
Democratic presidential candidate Senator Bernie Sanders holds a campaign event at La Poste in Iowa this week. Chip Somodevilla / Getty Images
Democratic presidential candidate Senator Bernie Sanders holds a campaign event at La Poste in Iowa this week. Chip Somodevilla / Getty Images
Democratic presidential candidate Senator Bernie Sanders holds a campaign event at La Poste in Iowa this week. Chip Somodevilla / Getty Images

Iowa is still unsure who it will vote for – just like the rest of the US


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The week before Iowa, a predominantly rural state in Midwestern United States, kicks off the presidential primary season, its rolling plains and cornfields are covered in snow and the political debate is heating up.

On February 3, this overwhelmingly white and sparsely populated state of barely three million will fire the starting gun for the race to the White House. Across the state, roughly 1,700 caucuses, which are in essence neighbourhood meetings, will take place in church basements, fire stations, school gymnasiums and even around kitchen tables.

Iowans will break into groups for their preferred candidate, something that in caucus parlance is called an “alignment”. If their candidate is not “viable” – another word often heard here in Iowa to refer to at least 15 per cent support within a group – the caucus-goers might have to go into a “realignment”. Eventually, every precinct in each of Iowa’s 99 counties will have chosen their candidate in a very public show of support that outsiders might think was both brave and archaic, some 150 years after the secret ballot became a system of voting.

People across the country will closely watch – as they have every presidential election year since 1972 – Iowa’s first-in-the-nation verdict. It will be the subject of breathless commentary both in the US and around the world despite criticism that Iowa is racially and temperamentally unrepresentative of 21st century America.

People across the country will closely watch – as they have every year since 1972 – Iowa's first-in-the-nation verdict. It will be the subject of breathless commentary in the US and around the world. This is because the Iowa caucuses will undoubtedly help winnow the crowded Democratic Party field

This is because the Iowa caucuses will undoubtedly help winnow the crowded Democratic Party field. It will build momentum for some candidates, and provide an early indication of who might win the nomination at the Democratic national convention in July and go on to challenge President Donald Trump on election day, November 3.

But the Iowa caucuses have a problem and it is the same this election season as it was in the last. There is a chance Iowa could deliver a result so close that it would be confusing. Even though Iowa voters are famous for making up their minds late, the indecisiveness this time around – half the electorate is still unsure of its choice – is significant.

At the same point in 2016, only 14 per cent were undecided in the Des Moines Register poll, for a race that featured just two top contenders: Hillary Clinton and Bernie Sanders.

“It came down to a coin-toss in 2016,” Scott Punteney, chairman of the Pottawattamie County Democratic Party, acknowledges ruefully. “So yes, we’re not absolute.” Even so, he insists: “Iowa does matter because it sets the way the rest of the primary plays out nationally. If you don’t have a strong showing in Iowa you couldn’t do anything."

That is part of Iowa lore but it happens to be inaccurate. Two Democrats – Michael Dukakis in 1988 and Bill Clinton in 1996 – became their party’s nominee without a win in Iowa. Mr Clinton, of course, went on to a two-term presidency.

Often enough, the winner of Iowa in either party has not been able to muster enough momentum to win the next contest on the election calendar in New Hampshire, which is right after the caucuses.

In 2016, the Republican Party's Ted Cruz narrowly won in Iowa but Mr Trump won the New Hampshire primary. Add to that the rather uncomfortable reality recounted by John C Skipper in his book The Iowa Caucuses: First Tests of Presidential Aspiration, 1972-2008: "Historically, Iowans have a dismal track record for picking presidents. Aside from incumbents, the state has picked only three winners since 1972: Jimmy Carter in 1976, George W Bush in 2000 and Barack Obama in 2008."

However, the mythology around the Iowa caucuses is powerful and self-perpetuating. Not only do people in the state pride themselves on being the first Americans to sit in judgement on the political line-up every four years, they concede to feeling the strain of the decision they have to make. “It’s harder than being a voter, because we’re not just pulling a lever, we have to weed out candidates, and no one else has done it before us,” one Iowan says.

People applaud for Joe Biden, one of the Democratic Party's presidential candidates, during a campaign town event in Iowa. Chip Somodevilla / Getty Images
People applaud for Joe Biden, one of the Democratic Party's presidential candidates, during a campaign town event in Iowa. Chip Somodevilla / Getty Images

Mr Punteney, who is also president of a powerful western Iowa union and has caucused for 20 years, says he loves it. “You get to talk to your neighbours in a way you wouldn’t otherwise," he says. However, some Iowans express doubts about the very public nature of caucusing. “I’d prefer to do it privately like the voters do in other states,” says a resident of Council Bluffs, a city of 62,000, where presidential hopefuls frequent steakhouses, cafes, bowling alleys, brew pubs and “hot-dish” house parties.

Iowa likes the attention and it asks the candidates penetrating questions about issues such as healthcare, retirement, the minimum wage, finances as well as issues such as the collapsing nuclear deal with Iran, America’s continuing military engagement in the Middle East and Palestinian-Israeli peace. The state’s boast, often proudly told as a joke, is that “we don’t decide until the fourth time we sit down with a candidate”. It is true that Iowans, unlike neighbouring Nebraska and South Dakota, get a lot of facetime with frontline politicians.

But this time round, that close-up view does not seem to have sealed the decision. Recent polls have showed Senator Bernie Sanders in the lead with Pete Buttigieg, the former mayor of South Bend in Indiana, and Joe Biden, the former US vice president, in joint second place, Senator Elizabeth Warren in third and Senator Amy Klobuchar in fourth.

But other assessments suggest a different outcome, with Ms Klobuchar – a moderate Democrat from neighbouring Minnesota – possibly drawing support in unflashy western Iowa, while Mr Sanders and his fiery rhetoric does better in the eastern, more progressive part of the state.

Professor David Redlawsk, who wrote the definitive book on the relevance of the Iowa caucuses, says that county Democratic Party bosses have suggested Mr Biden might win and Mr Sanders will be in second place. But, he adds, the picture is far from clear.

If anything, Iowa seems to illustrate the very ideological divisions that the Democratic Party is struggling with nationally. To that extent, it is probably representative of the state of mind of the country.

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Overall standings

1. Christopher Froome (GBR/Sky) 68hr 18min 36sec,

2. Fabio Aru (ITA/AST) at 0:18.

3. Romain Bardet (FRA/ALM) 0:23.

4. Rigoberto Uran (COL/CAN) 0:29.

5. Mikel Landa (ESP/SKY) 1:17.

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Title: Assistant dean of students and director of athletics

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Brief scores

Toss India, chose to bat

India 281-7 in 50 ov (Pandya 83, Dhoni 79; Coulter-Nile 3-44)

Australia 137-9 in 21 ov (Maxwell 39, Warner 25; Chahal 3-30)

India won by 26 runs on Duckworth-Lewis Method

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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