Ferrari's German driver Sebastian Vettel has had a lot to think about after a string of frustrating results. Lluis Gene / AFP
Ferrari's German driver Sebastian Vettel has had a lot to think about after a string of frustrating results. Lluis Gene / AFP
Ferrari's German driver Sebastian Vettel has had a lot to think about after a string of frustrating results. Lluis Gene / AFP
Ferrari's German driver Sebastian Vettel has had a lot to think about after a string of frustrating results. Lluis Gene / AFP

Sebastian Vettel and Ferrari need to bounce back and Red Bull's pole chance: Monaco Grand Prix talking points


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Ahead of the sixth round of Formula One 2018 here is a look at some of the talking points to watch for in Monte Carlo as Ferrari look to bounce back to winning ways, Red Bull Racing push to be competitive at a track where engine power does not matter, while Romain Grosjean simply seeks to stay out of trouble.

Vettel and Ferrari look for a riposte

Sunday's Monaco Grand Prix will be only the sixth round of the Formula One season yet it already feels like a vital one for Ferrari.

It was April 8 when Sebastian Vettel triumphed in Bahrain to make it two wins out of two at the start of the campaign.

But that feels like a long time ago as in the subsequent three races Vettel has not finished on the podium once and from having a 17-point lead he now trails world champion Lewis Hamilton by 17 points.

Spain, two weeks ago, was arguably Ferrari's weakest performance of the year so far as they struggled to match Hamilton and Mercedes-GP on raw speed, and excessive tyre wear meant that Vettel had to settle for fourth place.

Monaco was the scene 12 months ago of a dominant display from Ferrari as Vettel led home teammate Kimi Raikkonen in an one-two finish and the Italian team will desperately want a repeat in Sunday's 78-lap race around the streets of Monte Carlo.

Hamilton and Mercedes, despite an inconsistent start to the campaign, have the early ascendancy in the standings. If history repeats itself from last year the German marque will only get stronger as the season goes on so Ferrari really need to be making full use of their early pace advantage now.

Victory on Sunday might not be enough to put Vettel back at the top of the drivers' standings, but it would slow the momentum of Hamilton, who has won the past two races.

With Canada next, which Hamilton has won for the past three years and Ferrari have not won at since 2004, it is crucial that Vettel and Ferrari stop the rot and are back on the podium, ideally on the top spot, this weekend.

____________

Read more

After Barcelona blunder, Romain Grosjean's dream of driving for Ferrari one day up in smoke

Supreme Lewis Hamilton wins Spanish Grand Prix to extend championship lead

Red Bull should encourage Ricciardo and Verstappen to race despite collision in Azerbaijan

____________

Red Bull's best pole chance

Before the era of Mercedes dominance in F1, which has seen them win the double of the drivers' and constructors' titles for the past four years, it was Red Bull Racing who were the team to beat.

Between 2010 and 2013 they won both world titles each year and won 41 races and took 52 pole positions.

The one pole position to have been claimed by the Austrian team since the end of 2013 came in Monaco two years ago when Daniel Ricciardo topped the times in qualifying.

Given the shortfall of power in the Renault engine they use, compared to Mercedes and Ferrari, this might well be Red Bull's best chance again of taking a pole in 2018.

You do not need a powerful engine to be competitive in Monaco due to the lack of the long straights. In Monte Carlo it is about aerodynamic grip and good traction out of the corners, something the Red Bull has in abundance.

The Red Bulls struggled to match both Mercedes and Ferrari on lap time around Barcelona earlier this month. But, the final sector, which is made up of a number of slow corners and a chicane, saw Red Bull be very quick compared to their rivals.

Given the bulk of the Monaco track is similar to that final few corners at the Circuit de Catalunya there is every reason for Ricciardo and Max Verstappen to believe they can be competitive this weekend.

Qualifying is important in Monaco, given it is nigh on impossible to overtake on track. In the past 30 years only once, Olivier Panis in 1996, has a driver won in Monte Carlo who started lower than third on the grid.

Red Bull have not had a car in the top three in qualifying once in 2018, but Monaco is there best hope of ending that statistic.

Grosjean needs a quiet weekend

Given the high proximity of barriers around the Monaco track, staying out of trouble and having a clean race can be easier said than done.

But, that is exactly what Haas driver Romain Grosjean needs after his horrendous race in Spain that culminated in his spin on the opening lap of action that eliminated not only himself from proceedings but the Renault of Nico Hulkenberg and Toro Rosso of Pierre Gasly as well.

Grosjean, deservedly, has come in for criticism for that mistake and a poor run of form that has seen him not score points in his past nine races.

A three-place grid penalty for his blunder in Barcelona means Grosjean faces a tough race on Sunday mired in the midfield.

But it is important for rebuilding his confidence, and probably belief in him from within the senior members of the Haas team, that he gets through the weekend in Monte Carlo with a minimum of fuss and avoiding contact with the barriers and other cars.

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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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