Ryo Ishikawa goes through his practice round at the Augusta National Golf Club. Harry How / Getty Images
Ryo Ishikawa goes through his practice round at the Augusta National Golf Club. Harry How / Getty Images

Ishikawa to devote his golf season's earnings this year to inspire Japan



AUGUSTA, Georgia // Ryo Ishikawa understands that whatever pressure he faces this week at the Masters doesn't even compare with what his people in Japan are facing as they try to recover from the earthquake and tsunami that destroyed so many lives.

Even so, the 19-year-old has been around long enough to appreciate the role sports can play.

That was one reason Ishikawa decided last week to donate all of his 2011 earnings on the golf course to relief efforts. The money itself, which could be in the range of $2.2 million (Dh11m) if he has the kind of season he did in 2010, is a small amount in the big picture.

He hopes the message is what comes across.

"I would like to emphasise the power and energy that sports can create for those people to encourage them, and also it's my intention to play really well," he said Monday. "It will be the best way to encourage people in Japan."

Ishikawa has not been home since the March 11 devastation. He played three straight PGA Tour event in Florida, then drove up to Augusta. His family flew in from Japan to meet him.

He had said during the Florida swing that his mind was on golf, yet his heart was at home as the Japanese try to recover. But he made clear Monday that he would not be distracted by anything except golf while at Augusta National.

Besides, the better he players, the more money for the relief efforts. Along with donating his entire earnings, Ishikawa has pledged about $1,200 for each birdie in competition.

"Right now, since my big decision, I'm 100 percent for playing golf," he said. "I believe that as I play, I'm connected with the people that are affected by the disaster through the donation, whatever I earn for this year. And that's why I am fully devoting myself to golf."

Now comes the hard part.

Ishikawa is a nine-time winner in Japan, once as a 15-year-old amateur, once by shooting 58 in the final round. That hasn't translated in America, where he has made only nine cuts in 19 events, his best finish a tie for ninth in the Match Play Championship last year.

"I haven't been producing the results, but at the same time, I know that I am playing well," he said. "I know what I'm doing is right at this point. And I would like to show to the American people how well I can play."

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.”

Golden Shoe top five (as of March 1):

Harry Kane, Tottenham, Premier League, 24 goals, 48 points
Edinson Cavani, PSG, Ligue 1, 24 goals, 48 points
Ciro Immobile, Lazio, Serie A, 23 goals, 46 points
Mohamed Salah, Liverpool, Premier League, 23 goals, 46 points
Lionel Messi, Barcelona, La Liga, 22 goals, 44 points

FIXTURES

All kick-off times UAE (+4 GMT)
Brackets denote aggregate score

Tuesday:
Roma (1) v Shakhtar Donetsk (2), 11.45pm
Manchester United (0) v Sevilla (0), 11.45pm

Wednesday:
Besiktas (0) v Bayern Munich (5), 9pm
Barcelona (1) v Chelsea (1), 11.45pm

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