Red Bull’s Daniel Ricciardo applauds as an elated Lewis Hamilton lifts his trophy after winning the German Grand Prix in Hockenheim. Ricciardo was second. Jens Meyer / AP Photo
Red Bull’s Daniel Ricciardo applauds as an elated Lewis Hamilton lifts his trophy after winning the German Grand Prix in Hockenheim. Ricciardo was second. Jens Meyer / AP Photo
Red Bull’s Daniel Ricciardo applauds as an elated Lewis Hamilton lifts his trophy after winning the German Grand Prix in Hockenheim. Ricciardo was second. Jens Meyer / AP Photo
Red Bull’s Daniel Ricciardo applauds as an elated Lewis Hamilton lifts his trophy after winning the German Grand Prix in Hockenheim. Ricciardo was second. Jens Meyer / AP Photo

Nico Rosberg at crossroads after Lewis Hamilton clinches German Grand Prix


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It is going to be a long four weeks until the next round of the Formula One season, the Belgian Grand Prix, takes place on August 28 for Nico Rosberg.

The Mercedes-GP driver heads off into the summer break needing to urgently find a way to stop the momentum of teammate Lewis Hamilton that is threatening to sweep the drivers’ championship away from him.

It seems an eternity ago, not May 29, that Rosberg had started the Monaco Grand Prix with a 43-point advantage over Hamilton, thanks to winning the opening four races.

He even had some of the moral high ground from his collision with Hamilton on the opening lap in Spain as he had superbly ground around the outside of the Briton at Turn 1 to take the lead at the start, before they made contact two corners later.

But a mixture of his own mistakes and Hamilton finding the consistency that took him to the 2014 and 2015 titles has led to a big turnaround that continued on Sunday in Germany.

Hamilton led every lap of the German Grand Prix at Hockenheim as he claimed his sixth win in the past seven races to move 19 points clear in the standings.

It was another mature drive from the triple world champion, who controlled proceedings once he had taken the lead at the start. Pole-sitter Rosberg got bogged down and dropped to fourth behind his teammate and the two Red Bull Racing cars of Max Verstappen and Daniel Ricciardo.

While Hamilton built up an early gap and then was content to cruise at the front, setting fastest laps at leisure if he ever felt under pressure, Rosberg’s afternoon became a long slog.

Unable to pass the Red Bulls on track initially at a circuit where the Austrians were relatively close on pure performance to the dominant Mercedes machines, Rosberg looked to make his move back up the order with an early second pit stop as the majority of the frontrunners went for three stops.

When Verstappen, who had been running second, came out after his second stop on Lap 28, Rosberg was right on him, and the German tried to surprise the Dutch teenager by diving down the inside at the hairpin.

He got the first part of the move right as he got inside Verstappen, but he did not turn in immediately and ran deep into the apex of the corner, forcing the Red Bull man to run wide off the track to avoid a collision.

The stewards took a dim view of this, and particularly as Rosberg had been penalised for a similar move on Hamilton in Austria earlier this month, it was no surprise when he was given a five-second time penalty.

Rosberg took his punishment at his final pit stop, when the rules dictated his mechanics must wait five seconds before touching the car.

To compound his miserable day, Mercedes made a mess of that, leaving it 8.3 seconds before they serviced the car, and the extra time lost ensured he was too far back to fight with Ricciardo and Verstappen in the closing laps.

A 43-point lead has now become a 19-point deficit, with Hamilton scoring 160 to Rosberg’s 98 in the past seven races.

Rosberg said of his latest setback: “Being 19 points is not tough, tough is losing the race in the way I did and that will take some time to digest.”

Rosberg’s problem is that Hamilton is a formidable opponent, who rarely puts a wheel wrong, and throwing away extra points through his own mistakes is only making life more easier for his teammate.

A poor start and then misjudging how aggressive to be with Verstappen cost him at least six points here, if not more as it would have been hard for Hamilton to beat him if he had led at the start.

Rosberg has some major regrouping to do now, while Hamilton can savour an excellent past seven races.

“This is a very proud position to be in and thank you to the team, who did a fantastic job,” he said. “I didn’t make any mistakes so in my heart I’m happy with what I did.”

Report card

Star performer – Lewis Hamilton (Mercedes-GP) The world champion again put in a perfect display of speed and tyre management as he controlled the race from the front as he made it four wins in a row and has taken a firm grip on the drivers' championship.

Underperformer – Ferrari This was a disappointing day for the Italian marque as their drivers Sebastian Vettel and Kimi Raikkonen had a lonely afternoon in fifth and sixth, unable to match the pace of the Mercedes and Red Bull Racing cars.

Key moment Nico Rosberg's race fell apart after he was given a five-second penalty for being found to have not given Max Verstappen enough racing room when he passed him. Second place and the chance to pressurise Hamilton instead became a low-key fourth place.

Our verdict A largely processional affair, only enlivened by Rosberg's botched attempt to make up for his poor start. The midfield action was entertaining, but Hamilton was in a class of his own at the front.

gcaygill@thenational.ae

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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.

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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.

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“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.”