Team mechanics, above, prepare a cover for Vitaly Petrov’s damaged Lotus-Renault outside the pit lane after the first practice in Malaysia, which has not gone as well as the season-opener in Australia for the team.
Team mechanics, above, prepare a cover for Vitaly Petrov’s damaged Lotus-Renault outside the pit lane after the first practice in Malaysia, which has not gone as well as the season-opener in Australia for the team.
Team mechanics, above, prepare a cover for Vitaly Petrov’s damaged Lotus-Renault outside the pit lane after the first practice in Malaysia, which has not gone as well as the season-opener in Australia for the team.
Team mechanics, above, prepare a cover for Vitaly Petrov’s damaged Lotus-Renault outside the pit lane after the first practice in Malaysia, which has not gone as well as the season-opener in Australia

French run only so deep with the Renault F1 team


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From the Federation Internationale de l'Automobile to parc ferme, French influence in Formula One is traditionally as inescapable as the Malaysian humidity.

The first grand prix was held in the early 1900s in Le Mans and was won by a Renault. Alain Prost, from the Loire valley in Central France, won the world championship four times between 1985 and 1993. And the French Grand Prix was key once the inception of the world championship in 1950 helped turn racing into an all-encompassing sport with an international following.

However, it is that same international, multicultural involvement that has seen the influence of France dwindle. The country's annual race has not appeared on the calendar since 2008. There are no French race drivers in any of the 12 teams and Renault - long the sole Gallic flag-flier - earlier this season announced it would be competing under a British racing license.

"We are an English-based team owned 100 per cent by a Luxembourg company," said Eric Boullier, Renault's team principal and undoubtedly the most prominent Frenchman in the F1 paddock. "We have a French team principal and a French engine supplier with a British title sponsor."

Yet even Boullier's French heritage had little to do with his appointment at the helm of Renault. In late 2009, the French-owned race team was acquired by Genii Capital, a Luxembourg-based investment firm that shares personnel with Boullier's own Gravity Sports Management.

Despite the bespectacled Frenchman's inexperience in Formula One, his expertise in GP2 and A1GP were valued and by the time the 2010 season was due to start he had been confirmed as team principal and managing director.

Boullier, at 36 years old, was one of the youngest team principals in the sport, yet having watched Renault finish eighth in 2009, he was intent on improving the team and proving himself. With some decisive management and no doubt applying some of the knowledge he gained from his aeronautics and spacecraft engineering degree, Boullier led Renault to fifth in his first season in charge.

"I have had no time to think about it," he told The National yesterday on the sidelines of the Malaysia Grand Prix. "I had good experiences with motor racing before joining Formula One and maybe this was good enough to allow me to make the step up, but F1 is a much higher step. You have to be ready to be totally dedicated to this job: day and night, weekends included.

"That said, it's nice to be involved in the best motorsports show in the world, and to be in and among the big guns."

This year, after being rebranded Lotus Renault GP, the team was thrown into disarray when lead driver Robert Kubica was involved in a life-threatening crash while rally driving in Italy. Vitaly Petrov, a Russian driver who had come close to being dropped, was joined instead by Nick Heidfeld, the German veteran without a race win in 175 grands prix. "Eric is doing a great job here," Heidfeld said. "I had contact with him over the past two years when I was trying to secure a seat, and we have built up a good relationship where we can both be open with each other.

"I feel like he supports me."

While Heidfeld laboured to 12th place in Australia last month, it was Petrov who charged up the grid to finish third, his best result since joining F1. Boullier, who called the podium finish "a big relief" and "reward for a tough winter", said the team can be even faster this weekend at Sepang.

But in yesterday's first practice session it looked like the wheels had all-too-literally come off as Boullier chases successive podiums for the first time in his Formula One career.

Heidfeld and Petrov both suffered front wheel failures forcing them to retire early, with Petrov spinning into the gravel pit after a wheel broke loose from its mounting. With damage to the front of both cars, neither was expected to return for P2, yet, once again, Boullier's team exceeded expectations and both drivers were back out on track by the end of the afternoon session.

"It was a bit dramatic," Boullier said. "Obviously as it is a safety issue, it took us a lot of time to investigate properly. We found out that the two failures were coming from the same batch [of uprights], but we had a back-up plan and took the decision to run different ones."

The plan worked and Heidfeld was eighth fastest. With another practice session and qualifying to take place before tomorrow's race, the Frenchman's bid for successive podiums is still alive.

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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  • A new “core protection” for refugees moving from permanent to a more basic, temporary protection
  • Shortened leave to remain - refugees will receive 30 months instead of five years
  • A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
  • To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
  • Under core protection there will be no automatic right to family reunion
  • Refugees will have a reduced right to public funds
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Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate?
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