David Moyes shown managing Real Sociedad against Granada in La Liga on Tuesday. Miguel Angel Molina / EPA / September 22, 2015
David Moyes shown managing Real Sociedad against Granada in La Liga on Tuesday. Miguel Angel Molina / EPA / September 22, 2015

For David Moyes in Basque derby, identity and sovreignty and points all part of the pressure



David Moyes, the coach of Real Sociedad, hardly needs lessons in how suffocating a charged local derby can become for its participants.

Moyes played for Celtic, a club who share ownership of one of the fiercest local sporting rivalries in the world. He made his name in management with Everton, in an era when that club’s principal progress was assessed by many fans not by trophies but by their performances, at least twice a year, in matches against Liverpool.

Moyes appreciated soon after his appointment at Real, last November, the weight given by supporters of the San Sebastian club to fixtures against Athletic Bilbao. The clubs are the main, historic representatives of football in the Basque Country, an autonomous region in north-east Spain.

To stand for Basqueness is to stand for a great deal more than for a region. It is to stand for a sense of sovereignty.

Plenty of flags will be on show at Real's Anoeta Stadium on Sunday, but it would be surprising to see one in the yellow and red of Spain. Rather, the green, red and white colours of the ikurrina, the Basque flag, will be conspicuous.

Real and Athletic have a long argument about how best to represent their Basqueness. Athletic recruit and field only players who have a distinct connection to the region, either by birth or parentage. It is a brave strategy in a global sport where success is conventionally achieved with players drawn from all corners of the planet.

Foreign internationals do and have represented Athletic, but all of them have links to the region, such as Aymeric Laporte, the France international defender, who grew up in Athletic’s youth system and traces a Basque lineage through his great-grandparents.

Until the 1980s, Real did not employ players from outside the region. They then began to hire players from abroad, but few from parts of Spain outside the Basque Country, until they opened up their recruitment after the turn of the millennium. But a sense of locale is still important, which partly explains why the president, Jokin Aperribay, pushed so hard for the signature, at the end of the transfer window, of former Real Madrid midfielder Asier Illarramendi.

Illarramendi is from Mutriku, a town midway between San Sebastian and Bilbao, and came through the youth ranks at Real. He joined Madrid for more than €30 million (Dh122.9m) in 2013. But he never established a steady first-team place there and Real brought him home for around a third of the price for which they had sold him.

Illarramendi, 25, has given Sociedad extra bite in the centre of midfield. Moyes, who was relieved to gain his first victory of a difficult season, 3-0 away at Granada on Wednesday, approves of Illarramendi’s qualities, even if he might have preferred the outlay to have been spread around the hiring of two or more new players.

“You never get everything you want in the transfer market,” said Moyes, whose last job was at Manchester United. “You hope to strengthen, improve the team.”

Interest in the strikers Danny Ings, who went from Burnley to Liverpool, and Mohamed Salah, who joined AS Roma on loan from Chelsea, did not come to fruition and goals have been a problem for Real, although Imanol Agirretxe’s hat-trick against Granada has boosted morale ahead of the derby.

It also served to push Real above Athletic, who have lost four of their five Primera Liga matches, in the table.

Which of them finishes each campaign higher is taken as a measure of success or shortcomings for many Basque fans. But it will not become an obsession for the Scotsman in charge of the club currently two points ahead of their rivals.

“It’s important,” Moyes said, “but I don’t keep thinking about who we finish above.”

He oversaw a pair of 1-1 draws in the derbies last season, so he has yet to know the elation of a Real win against Athletic, or the noisy disappointment that follows a defeat.

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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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