Lukas Podolski joined Inter Milan on-loan this month after being frustrated at his lack of playing time at Arsenal. Giorgio Perottino/Reuters
Lukas Podolski joined Inter Milan on-loan this month after being frustrated at his lack of playing time at Arsenal. Giorgio Perottino/Reuters

A Torres or a Gervinho? Weighing up Lukas Podolski’s move to Inter Milan



It has become a familiar path. A player in the Premier League struggles for game time, the seasons pass since his feted arrival and he seeks an opportunity in Italy’s Serie A, where the transfer budgets are lower, the chances of progress in the Uefa Champions League more slender, but the salaries at major clubs are still high, with an illustrious tradition to go with it.

Slipping down

Lukas Podolski joined Inter Milan on loan almost as soon as the winter transfer window opened, possibly ending his two-and-a-half year stay at Arsenal. His outings in the starting XI for the London club had been dwindling, his place in the pecking order at centre-forward below Olivier Giroud and Danny Welbeck, and his usefulness diminished by the impact made by Alexis Sanchez.

A Torres or a Gervinho?

Inter may be as good for him as Roma have been for his former Arsenal colleague, Gervinho, who moved for similar reasons 18 months ago. Or he could find himself as lonely as Fernando Torres, who left Chelsea for AC Milan in August. Torres has already moved on, to Atletico Madrid, after one goal in 10 matches.

The prodigy

Podolski, 29, is younger than one would expect, given his accomplishments. He has 120 caps for Germany, for whom he made his debut at 19. He was voted best young player at the 2006 World Cup and took home a winners medal in 2014, though he appeared in only two games in Brazil.

Bouncing back

Podolski has recovered from his career derailing before. He joined Bayern Munich in 2006 but, as at Arsenal, found himself mainly a back-up, his powerful left foot utilised from the bench. So he returned to Cologne, where he is regarded as a hero, and thrived, prompting Arsenal’s interest. Inter, for whom he made his debut as a substitute in a draw with Juventus, hope they can rejuvenate him.

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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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BORDERLANDS

Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis

Director: Eli Roth

Rating: 0/5

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BEETLEJUICE BEETLEJUICE

Starring: Winona Ryder, Michael Keaton, Jenny Ortega

Director: Tim Burton

Rating: 3/5

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The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now

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