Rory McIlroy of Northern Ireland can only rue the mistake that cost him a two-stroke penalty after finishing only a stroke behind Pablo Larrazabal at the Abu Dhabi HSBC Golf Championship. Ross Kinnaird / Getty Images
Rory McIlroy of Northern Ireland can only rue the mistake that cost him a two-stroke penalty after finishing only a stroke behind Pablo Larrazabal at the Abu Dhabi HSBC Golf Championship. Ross Kinnaird / Getty Images
Rory McIlroy of Northern Ireland can only rue the mistake that cost him a two-stroke penalty after finishing only a stroke behind Pablo Larrazabal at the Abu Dhabi HSBC Golf Championship. Ross Kinnaird / Getty Images
Rory McIlroy of Northern Ireland can only rue the mistake that cost him a two-stroke penalty after finishing only a stroke behind Pablo Larrazabal at the Abu Dhabi HSBC Golf Championship. Ross Kinnair

Rory McIlroy will not let ‘negative’ ruin start of his year


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ABU DHABI // Rory McIlroy might not be the best at reciting the nuances of golf's Byzantine rule book, chapter and verse, but there clearly is nothing wrong with his ability to count.

As he birdied the last hole of the Abu Dhabi HSBC Golf Championship on Sunday to finish his first start of 2014 in a tie for second place, another realization set in.

It was like indigestion after a good meal.

“I guess I’m standing here, thinking that I played one shot less than anyone else this week, but ended up not getting a trophy,” he said.

For the second time in three years, no less.

The world No 7 absorbed a two-stroke penalty in 2012 for an unwitting rules violation and finished a shot behind the winner, Robert Rock, then duplicated the feat this week when a two-shot penalty was added to his score on Saturday.

As if by the cruel force of fate he finished at 13 under, one shot behind Pablo Larrazabal.

Worse, it marked his third runner-up finish at Abu Dhabi, where he was seeking to become the first player to win all three European Tour events staged in the UAE.

He tried to reconcile all those painful facts after his closing 68 came up just short. The frustration was evident, just as it was when the penalty was assessed after the third round and he impulsively characterised the violation as a “stupid rule”.

“I can’t describe it,” McIlroy said. “You know, I feel like I’m standing here and I should be 15-under par for the tournament and win by one. But that’s the way it goes.

“I played the least shots of anyone this week. So, I mean, I can count it as a moral victory more than anything else.

“Yeah, it’s frustrating. I’ve played well the whole week. It’s a very positive start to the season, so I’m not going to let one little negative ruin that.”

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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.”