The Volvo Ocean Racing field had a frustrating time with no wind to help them.
The Volvo Ocean Racing field had a frustrating time with no wind to help them.
The Volvo Ocean Racing field had a frustrating time with no wind to help them.
The Volvo Ocean Racing field had a frustrating time with no wind to help them.

Lack of wind makes it not plain sailing for Azzam


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CAPE TOWN // The first night of Leg 1 brought too much drama, and the first night of Leg 2 brought too much boredom.

When morning came yesterday, the six contestants of the Volvo Ocean Race still floated near the Cape of Good Hope with windless conditions and timeless frustrations.

"All our weather strategy is in pieces now," Ian Walker, the skipper of Abu Dhabi Ocean Racing, told the Volvo website, which called the fleet's progress "painfully slow" as it had not hooked into the reigning low-pressure system as anticipated along the way toward an early-January arrival in Abu Dhabi.

Walker spoke of sailing 0.6 nautical miles in two hours and joked about befriending an ever-present rock.

Will Oxley, the navigator of Camper with Emirates Team New Zealand, said: "We might be having Christmas in Africa yet."

Telefonica, the Spanish entry and overall leader in the race after winning Leg 1, dropped its anchor, which the watch captain Neal McDonald preferred to "going backwards".

Mike Sanderson, the skipper of the Chinese entry Team Sanya, called it "frustrating" while reminding it trumped the first night of Leg 1, when Sanya broke its hull.

The same would hold for Walker and Abu Dhabi, which suffered a broken mast that same November 5 night and rebuilt its rigging around a back-up mast across the ensuing month.

By afternoon yesterday, the boats lagged along at slow speeds with the French entry Groupama in the lead, everybody waiting and Abu Dhabi in a barely consequential fifth place.

"We made a great exit from Table Bay" near Cape Town, Walker told the Volvo staff, "and built a nice lead before getting swallowed up by the fleet as we sat in no wind further up the coast."

He said Abu Dhabi's Azzam "got caught too near the shore and we have paid a huge price."

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Cast: Akshaye Khanna, Richa Chadha, Meera Chopra & Rahul Bhat

Director: Ajay Bahl

Producers: Kumar Mangat Pathak, Abhishek Pathak & SCIPL

Rating: 3.5/5

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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.”