Newcastle United manager Eddie Howe had a sympathetic word on Tuesday for the man freshly removed from his old job at Bournemouth.
He was “surprised and disappointed” for Scott Parker, sacked four matches after having led Bournemouth back into the Premier League. “He did a brilliant job,” said Howe, careful not to judge the club that he himself guided to two promotions “without knowing what’s going on there”.
One thing Howe does know about Bournemouth’s haste in changing their manager is that a 9-0 loss to Liverpool on Saturday had a lot to do with the timing of it.
The humiliation provoked Parker into pointing out how little Bournemouth had invested in reinforcing their squad for the challenges of England’s top division, calling them “underprepared”. The numbers back him up. In the Premier League, only Leicester City went into the last 48 hours of the summer transfer window having spent less than the Cherries.
At the other end of the money table are Howe’s Newcastle. They will take on goal-glut Liverpool this evening with a balance sheet for 2022 that currently shows the highest net spend on players not just in the Premier League but of any club across Europe’s major leagues – a huge leap up in the club’s influence in the market, a statement of ambition from the club’s principal backers, Saudi Arabia’s Public Investment Fund (PIF).
Howe has a particular perspective on the scale of the transformation. Since he was appointed as manager last November, a month after the takeover of the club by a consortium in which PIF have much the largest stake, Newcastle have paid out as much in fees for new signings as Bournemouth did across the five years that Howe skilfully managed them in the Premier League, until they dropped down to the Championship in 2020.
The net Newcastle spend so far this calendar year is more than €200 million, a figure swelled last week by the club-record capture of striker Aleksander Isak from Real Sociedad, who could earn €70m from the sale.
If Isak provides the same sort of uplift that the club’s major January signing Bruno Guimaraes has done, Howe will regard him as a major ally in the bid to bring European football to St James' Park next season.
“He's a very exciting player,” said Howe of the 22-year-old Sweden international. “He's got a mix of attributes that will hopefully elevate us: pace, technical ability, a really good dribbler. But also he's a team player. He will want to help bring other people into the game as well.
“I see someone who has very quietly gone about his business in his time with us so far in a very impressive way.”
The one frustration has been the wait for Isak’s working visa to be issued. It delayed a possible debut during the 1-1 draw at Wolverhampton Wanderers at the weekend. Newcastle were still trying to accelerate the process on Tuesday to make Isak available for the trip to Anfield.
Newcastle 3 Manchester City 3: player ratings
There, Howe will in any case line up a very different side to the one he took to Anfield last season, for his fourth league game on the touchline as Newcastle manager, a 3-1 defeat.
The personnel for an entirely new defensive unit – goalkeeper Nick Pope, plus Kieran Trippier, Sven Botman, Dan Burn and Matt Targett – have joined since, at a combined cost of almost €100m, with Guimaraes, a €42m purchase from Lyon, galvanising the area in front of them.
Newcastle were 19th in the table when they went to Liverpool on that December day. “We were in a difficult position at that moment, just trying to stay in the game as long as we could,” recalled Howe. “We’re in a stronger place [now], unbeaten [so far this season]. I see no reason why we shouldn’t go there and give another good account of ourselves.”
He has injury concerns over Guimaraes, and winger Allan Saint-Maximim – who was in inspired form in the 3-3 draw against champions Manchester City and who struck an eye-catching, volleyed equaliser at Wolves – but neither of them grave enough, Howe says, to provoke another major swoop into a transfer market where Newcastle’s big-spend reputation is now firmly established.
“We're very pleased with the business we've done,” said the manager. “The injuries we have we believe to be short-term. Longer term, when those bodies are back, we're very strong.
“That's not to say we're totally closed off. We're obviously still looking but I don't expect any major business to be done.”
WIDE%20VIEW
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Graduated from the American University of Sharjah
She is the eldest of three brothers and two sisters
Has helped solve 15 cases of electric shocks
Enjoys travelling, reading and horse riding
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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Expert advice
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