The Lancashire team during the Twenty20 Cup Quarter Final against Middlesex at the Oval.
The Lancashire team during the Twenty20 Cup Quarter Final against Middlesex at the Oval.
The Lancashire team during the Twenty20 Cup Quarter Final against Middlesex at the Oval.
The Lancashire team during the Twenty20 Cup Quarter Final against Middlesex at the Oval.

ECB mull on options


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LONDON // The England and Wales Cricket Board are expected to resist plans to implement a new Twenty20 tournament into domestic cricket based on the Indian Premier League. The plans, drafted by the MCC secretary Keith Bradshaw and Surrey chairman David Stewart and discussed at length with officials at Hampshire and Lancashire, propose a radical new format to the county structure.

They suggest a new 57-match Twenty20 tournament spanning 25 days, with nine teams based at the main Test and one-day international grounds in this country backed by city investors. Each team would feature a mixture of homegrown and overseas players and initial projections predict a profit of £50million (Dh366m) in the first year, with the potential to generate around £85m a year. It would be run by a new company rather than the ECB and, under the proposals, the new tournament would replace the existing 40-over competition in the county structure.

But the ECB chairman Giles Clarke appeared to distance himself from the proposals and stressed: "There have been a lot of ideas pushed around, most of debatable economic validity. "Quite a lot of it is probably not going to find favour with me; there may be elements of it to take into consideration. "I am firmly in favour of 18 counties playing matches for their home crowds. I don't see why they should be fearful for their county futures."

He said: "The board agreed at their last meeting on an 18-county structure. We're very firm that the 18-county structure taking the game around the country is really important for cricket in England and Wales. "History and tradition is something only a fool breaks asunder. We need to ensure whatever is produced will be economically viable, will provide cricket people want to watch and the right format for our national side in all forms of cricket."

The proposals, which are due to be presented at a Board meeting on Tuesday, set out plans for each consortium to enter a bidding process for players similar to that seen in this year's inaugural IPL. Each squad would have a proposed salary cap of £1.5m and must include 12 homegrown players while there would be an auction for overseas players. All profits and revenue from the tournament would be shared between the ECB, who would distribute it down to the counties and grassroots cricket, and overseas boards, who would provide some of the star players. The plans also include a separate Friday night Twenty20 tournament and a limited-overs competition to be run at the weekends.

It is the first serious attempt to rival the highly-successful IPL, which is planning to have two tournaments a year from 2011, and has made such an impact that in a recent survey, 50 per cent of England players confirmed they would consider retiring early to play in it. Meanwhile, the row over Yorkshire's expulsion from the Twenty20 Cup rumbles on after the county confirmed they would be fighting the decision.

The discipline commission decided that Yorkshire's use of Azeem Rafiq, a former Under 15 captain who does not hold a British passport, in a group match against Nottinghamshire was a sufficient breach of the rules to force their ejection from the competition. The hearing will be held in Taunton on tomorrow. * PA Sport

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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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