Altitude high but stakes higher for Hirvonen


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For the BP Ford Abu Dhabi pair of Mikko Hirvonen and Jari-Matti Latvala, last month's opening World Rally Championship (WRC) fixture in Sweden was a case of job done, 12 more to go. The victor Hirvonen and third-placed Latvala both triumphed in personal battles against their Citroen adversaries; the six-time world champion Sebastien Loeb finished second and his teammate Dani Sordo was off the podium in fourth.

With points, however, come penalties, and the Ford pair will shoulder less advantageous starting positions when Rally Mexico - the 13-event WRC calendar's second round - gets under way today. "Leading the championship can have its disadvantages, and I now run first on the road for the opening gravel rally of the season," said Finland's Hirvonen, who flew to the rally's base in Leon a week ago to acclimatise to the high altitude and the eight-hour time difference.

"My rivals have better road positions than me so it will be difficult, but I'll still try to find a way to challenge for the win. "I'm not underestimating the difficulties, but I wouldn't swap my win in Sweden for a better start seeding." That chief rival, inevitably, is Loeb. The Frenchman, who suffered an uncharacteristic dip in form midway through last season, beat Hirvonen to the 2009 drivers' title by a single point. He is eager to avoid similar pressures this time around.

"We can't really say that the championship's got off to a bad start with second place, but I'm not going to let Mikko open up a gap in the overall classification," Loeb vowed. With the WRC's top two drivers engaging in a title tussle again, Loeb summed up the pair's dominance when he said a fourth consecutive Mexico victory would not necessarily put him clear in the standings. "A win would put us on level pegging," he added, before calming expectations. "I'm not going to make any predictions as we haven't raced in such conditions [gravel] for six months."

Having enjoyed his best start to a Ford season, Latvala, 23, is relishing the trans-Atlantic trip. "I've not had as good a start to a season for five years and it's a completely different sensation to go to Mexico feeling relaxed and under less pressure," said the team's No 2. With the Hirvonen-Loeb drivers' title race likely to dominate proceedings, Sordo's pursuit of Latvala will provide an intriguing sub-plot.

Ultimately, whichever driver performs better throughout the year can expect to seal his team a manufacturers' crown - a point not lost on the Spaniard. "I'll have the advantage of starting fourth on the first day, so the line's going to be well swept by the first three," explained Sordo. "I hold all the aces and I won't forget the job I've been given: to score maximum points for the manufacturers' title. Our rivals got off to a better start in Sweden, but we're determined to catch them."

On Hirvonen's 100th WRC start, the Mexico route - perhaps more so than his starting road position - could pose the biggest hurdle to the challenger scoring a second successive victory. A compact series of high-speed gravel stages through the Sierra de Lobos and Sierra de Guanajuato mountains and the plains around the cities of Guanajuato, Leon and Silao, have been complemented with tyre-testing asphalt sections. The high altitude also forces the WRC engines to struggle in the thinner air and cars generally suffer a drop in power of around 20 per cent.

It is not, however, something spectators lining the mountain ravines tend to notice. The WRC's "fantastic four" - embedded in individual and team jousts for supremacy - simply hurtle by. @Email:emegson@thenational.ae

RESULTS

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Catchweight 68kg:
Sean Soriano (USA) bt Noad Lahat (ISR)
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Middleweight:
Denis Tiuliulin (RUS) bt Juscelino Ferreira (BRA)
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(TKO round 1)
Featherweight:
Tarun Grigoryan (ARM) bt Islam Makhamadjanov (UZB)
(Unanimous decision)
Catchweight 54kg:
Mariagiovanna Vai (ITA) bt Daniella Shutov (ISR)
(Submission round 1)
Middleweight:
Joan Arastey (ESP) bt Omran Chaaban (LEB)
(Unanimous decision)
Welterweight:
Bruno Carvalho (POR) bt Souhil Tahiri (ALG)
(TKO)

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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.”

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