Luke Parkinson, Abu Dhabi Ocean Racing bowman, showing during the Leg 0 practice run in Alicante, Spain, on September 13, 2014 ahead of the 2014/15 Volvo Ocean Race official start on October 4. Matt Knighton / Abu Dhabi Ocean Racing / Getty Images
Luke Parkinson, Abu Dhabi Ocean Racing bowman, showing during the Leg 0 practice run in Alicante, Spain, on September 13, 2014 ahead of the 2014/15 Volvo Ocean Race official start on October 4. Matt Knighton / Abu Dhabi Ocean Racing / Getty Images
Luke Parkinson, Abu Dhabi Ocean Racing bowman, showing during the Leg 0 practice run in Alicante, Spain, on September 13, 2014 ahead of the 2014/15 Volvo Ocean Race official start on October 4. Matt Knighton / Abu Dhabi Ocean Racing / Getty Images
Luke Parkinson, Abu Dhabi Ocean Racing bowman, showing during the Leg 0 practice run in Alicante, Spain, on September 13, 2014 ahead of the 2014/15 Volvo Ocean Race official start on October 4. Matt K

Azzam skipper’s log 1: Final Volvo Ocean Race prep hints at excitement to come


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The Englishman Ian Walker again will be skipper of Abu Dhabi Ocean Racing’s boat, Azzam. This is the final instalment of his monthly messages for The National ahead of the round-the-world race.

We are less than two weeks from the start of the Volvo Ocean Race and the excitement is building in Alicante, Spain, where the seven teams are making final preparations and the race village is nearing completion.

The unofficial start of the race came two weeks ago, as all teams had to complete a 645-kilometre prologue race called Leg 0. Although no points were at stake, it was the first time all seven of the new Volvo 65 yachts raced against each other. We were all eager to measure our performance and learn as much as we could about our competitors.

After an action-packed start off Alicante’s main beach, the course saw us heading round the islands of Tabarca and then off past Ibiza to two turning marks in the Bay of Palma on the island of Majorca, before returning to Alicante.

We had settled into second place behind the Dongfeng Race Team before the wind started to die offshore. The race became a tricky, light-wind affair that was largely decided by the decision early on as to which side to pass the Ibiza islands. You could go north, south or through a narrow navigable gap between the two main islands of Ibiza and the smaller Formentera.

On Azzam we hedged our bets through the middle, only to see massive gains by the three boats in the north. The Spanish team was the only one to head south and they suffered hugely, getting stuck in very light winds and trailing the fleet by about eight hours. Offshore racing can be very cruel.

Incredibly, the six other boats ended up finishing within sight of each other after two days of racing. We fought back to finish third, a few hundred metres and only minutes behind the leaders Vestas and Team Brunel, who were just 10 seconds apart. If every leg of the Volvo Ocean Race is as exciting as this it’s going to be a very demanding nine months. It’s a good job I’ve already lost most of my hair, as the stress will be palpable.

Fighting back when things do not go as planned is going to be a key ingredient in this race and one of our goals is to try to finish on the podium in every leg. To be consistent we need to make sure we minimise the risks in all areas – from our boat handling to our racing strategy and boat preparation.

In these final days the focus is on boat preparation as all seven boats have been lifted from the water for a full maintenance overhaul. Our shore team removed the mast and keel, stripping everything down and checking the tiniest details. Another of our goals is to have the best-prepared boat in the fleet. Last race, we suffered debilitating breakdowns and we don’t want any repeats this time.

So the final countdown has begun and it’s all about preparation and final checks. Working with Neal McDonald, our coach, we will review all our training notes and the crew have medical, engine, hydraulic and boat-building refresher courses. There’s one last fitness test by our sports science manager, Pete Cunningham, and then a few days of short, sharp, on-the-water training before the first in-port race, on Saturday.

I will be working with our navigator, Simon Fisher, and our expert weather forecasters, Chris Bedford and Marcel Van Triest, on the strategic planning for Leg 1 to Cape Town, South Africa, which begins October 10. Succeeding in this race is going to take a massive team effort and everyone plays a crucial role.

On a personal level, I’ve never felt more ready for any event I’ve ever entered. I’m excited about the challenge ahead and confident that we have the best support and have enjoyed the best preparation of any team. Abu Dhabi Ocean Racing and our fabulous yacht Azzam are ready for the start of an incredible adventure.

The Volvo Ocean Race is never straightforward and when you are racing against the best sailors in the world, success is always hard-earned. We’re ready to give it everything and I hope you’ll all follow us along the way. Go Azzam!

sports@thenational.ae

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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.”