MELBOURNE // A newly reinstated rule by motorsports' world governing body could see tomorrow's grid for the opening grand prix of the new Formula One season hit by the absence of four cars.
The Federation Internationale d'Automobile (FIA) has re-introduced a rule that stipulates every driver must record a lap time during qualifying that is within 107 per cent of the pace-setter's fastest lap.
The rule was removed last year in an effort to help the championship's new race teams but returns for tomorrow's season-opening Australian Grand Prix. And it could mean Timo Glock and Jerome d'Ambrosio, of Marussia Virgin, and Narain Karthikeyan and Vitantonio Liuzzi, of the Hispania Racing Team (HRT), could miss out on taking to the Albert Park track.
Check out the graphic on the many rules changes this season
Both Virgin and HRT failed to clock a time within 107 per cent of Jenson Button's 1min 25.854secs — the fastest of the day. The required time would have been 1.31.864, but the Virgins managed only 1.32.1.
"The gap to the top guys is quite big and that's a bit disappointing," Glock said last night. "We have to make the best out of it, get on top of it and make the car quicker."
Ambrosio, Glock's teammate, is making his Formula One debut this weekend and said that despite the concerns regarding tomorrow, yesterday was "a dream come true".
"It was very exciting to drive out of the garage and also to drive here in Albert Park for the first time," he said.
In the case of HRT, the Spanish constructors failed once again to complete a lap after car development issues forced them to remain in their pit for most of the day. Liuzzi received a round of applause when he finally took the F111 to the track with less than three minutes remaining. He failed to clock a lap time.
Karthikeyan, HRT's Indian driver, who is hoping to race this weekend in his first F1 grand prix since 2005, however tried to remain positive.
"Unfortunately we lost a day today, so I think it's going to be a tough weekend undoubtedly, but at least we have made some progress," he said. "Just to trim parts and fit them into a car is a time-consuming process."
Meanwhile, the FIA announced that a minute's silence will be held before the start of the race tomorrow to honour the victims of the recent natural disasters in Japan, New Zealand and Australia. All 12 race teams are carrying bespoke stickers as a mark of respect to the ongoing situation in Japan.
Felipe Massa, the Ferrari driver, said he was "praying every night" for the Japanese people. "It was really a disaster," he said. "To see what is happening, you don't even see that in the movies."
gmeenaghan@thenational.ae
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Players Selected for La Liga Trials
U18 Age Group
Name: Ahmed Salam (Malaga)
Position: Right Wing
Nationality: Jordanian
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The biog
Born: near Sialkot, Pakistan, 1981
Profession: Driver
Family: wife, son (11), daughter (8)
Favourite drink: chai karak
Favourite place in Dubai: The neighbourhood of Khawaneej. “When I see the old houses over there, near the date palms, I can be reminded of my old times. If I don’t go down I cannot recall my old times.”
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.”