McLaren's Oscar Piastri grabbed pole position for the Bahrain Grand Prix ahead of his 50th Formula One start with George Russell putting his Mercedes alongside the Australian on the front row for Sunday's race.
Piastri's championship-leading teammate Lando Norris qualified only sixth, a potentially significant blow in the title battle although closest rival Max Verstappen will start seventh for Red Bull.
Ferrari's Charles Leclerc qualified third and Mercedes' Italian rookie Andrea Kimi Antonelli fourth with Alpine's Pierre Gasly fifth.
Piastri, who was also fastest in two out of three practice sessions, lapped the floodlit Sakhir circuit with a best time of one minute 29.841 seconds - 0.168 faster than Russell. The pole was his second of the season and his career.
Russell was a surprisingly strong challenger and took second for Mercedes.
“The others caught up a little bit closer than what I wanted,” Piastri said. “But I still delivered the laps when it mattered, which was the most important thing in the end so very, very happy.”
"I've felt confident out there pretty much all weekend," added Piastri, who has a great chance to slash the 13-point championship gap to Norris.
"The others caught up a little bit closer than what I wanted but I still delivered the laps when it mattered, which was the most important thing at the end."
Russell said being so close to Piastri was a pleasant surprise but played down his chances of fighting for the win.
“I think if anybody said we’d be within half a second of the McLarens, we'd have taken it,” he said. “I think being realistic it’ll be a challenge to fight with with Oscar.”
Piastri is heading into his 50th career race with a chance for his second win of the season after victory in China last month. A win could put him top of the standings.
Carlos Sainz qualified eighth for Williams with Ferrari's seven-times world champion Lewis Hamilton ninth and Red Bull's Yuki Tsunoda 10th.
It was the first time this season that both Red Bulls had reached the final top 10 shootout.
Esteban Ocon crashed his Haas in the second phase, triggering red flags after he careered backwards across the gravel into the barriers.
The Frenchman said he was OK but took his time clambering out and was taken away in the medical car.
Australian rookie Jack Doohan qualified his Alpine 11th, his best qualifying session yet, and one place ahead of Racing Bulls' Isack Hadjar.
Alex Albon failed to make it through the opening phase for the first time this season, the Williams driver qualifying only 16th.
Albon was then promoted to 15th - but too late to continue in the session - when Sauber's Nico Hulkenberg had his lap deleted.
Liam Lawson’s tough start to the year continued as he was 17th for Racing Bulls after a fault with the DRS system. It’s the New Zealander’s second race since he was demoted from the main Red Bull team in favor of Tsunoda.
Despite Mercedes' strong pace, Russell and Antonelli are facing an investigation for driving out of the garage during a restricted period in the qualifying session.
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.”
