Sebastian Vettel's performance during his Canadian Grand Prix victory proved his world championship title credentials. Valdrin Xhemaj / EPA
Sebastian Vettel's performance during his Canadian Grand Prix victory proved his world championship title credentials. Valdrin Xhemaj / EPA
Sebastian Vettel's performance during his Canadian Grand Prix victory proved his world championship title credentials. Valdrin Xhemaj / EPA
Sebastian Vettel's performance during his Canadian Grand Prix victory proved his world championship title credentials. Valdrin Xhemaj / EPA

Sebastian Vettel's Montreal dominance shows he is on track for fifth F1 world title


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The Canadian Grand Prix on Sunday was the race that Sebastian Vettel and Ferrari have been threatening to have all season.

The four-time world champion dominated the seventh round of the Formula One season, leading every lap after starting from pole position to claim his 50th career victory.

Vettel won the opening two races of the season in Australia and Bahrain, but had not won since that triumph in Sakhir in early April.

However, that does not tell the whole story. Vettel and Ferrari have been a consistent force throughout the season, they just did not have the results to show for it.

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Were it not for ill-timed safety car periods in China and Azerbaijan he would have finished second and first, instead of eighth and fourth respectively. Instead of 43 points he scored 16.

World champion Lewis Hamilton led Vettel by 14 points going to Montreal, but even the Briton himself would have known that advantage was misleading, given the actual performance on track.

What we saw in Canada showed that the performance level has largely been there from Ferrari all season.

Hamilton and Mercedes have been quick at times, namely in Australia and Spain, while the tight confines of Monaco were always going to suit Red Bull Racing.

But Vettel and Ferrari have always been competitive. They were the fastest package in Bahrain, China, Azerbaijan and Canada, but were usually best of the rest, on outright pace, everywhere else.

Vettel now leads the standings by one point after seven races. Hamilton will be disappointed to have been usurped at the top, but given how the first seven races have gone, he should be grateful he is not further behind.

This is looking like Vettel's best chance to win his fifth drivers' title, having won four in succession with Red Bull between 2010-2013.

He was a match for Hamilton for much of last season, but the big difference this year is that Ferrari have excellent qualifying pace. Saturday was Vettel's fourth pole position of the year, and he has started ahead of Hamilton five times.

With overtaking still very difficult in F1, track position is critical. Unlike last year when he was chasing plenty of races and having to come from behind, this year he has been able to control more from the front.

Sunday was a masterclass once Vettel took the lead at the start. He built up a seven-second lead and was content to match what his nearest challenger, Mercedes' Valtteri Bottas. had to offer.

Anytime Bottas got too close he had an answer. The winning margin ended up being 7.3 seconds, but it was more emphatic than that.

Vettel was in a strong position last year, leading by 20 points after nine races, but a mixture of unreliability, driver error and a strong run of form from Hamilton sank his title chances.

Vettel has impressed with his mindset this season. He did not get angry, at least publicly, after being hit by Max Verstappen's Red Bull in China. He supported Ferrari's attempt to go for a two-stop tyre strategy in Spain, even though it backfired and dropped him to fourth.

The German certainly appears more relaxed. It probably helps the mindset when you have the best car in the field.

Hamilton and Mercedes, judging by their miserable expressions on Sunday night, know that they face a real challenge to prevent Vettel being crowned world champion after the season-ending Etihad Airways Abu Dhabi Grand Prix.

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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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Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.

Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”

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