Death of 13-year-old rider mars Pedrosa's Indy triumph


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Dani Pedrosa's victory in MotoGP's Indianapolis Grand Prix was overshadowed by the death of a 13-year-old motorcycle racer in one of the support events at the US track on Sunday. Peter Lenz suffered "traumatic injuries" after falling off his bike during a warm-up lap at the Motor Speedway before being struck by a 12-year-old racer, who was not hurt, ahead of Grand Prix Racers Union event. Lenz was taken off the track on a stretcher and rushed to a nearby hospital where he died three hours later. The coroner's office said he died from blunt force trauma.

"On behalf of the Lenz family, we would like to thank Peter's friends and supporters for all their help throughout the years," the family said in a statement on Sunday. "We are deeply saddened by this tragic loss." He is the first competitor to die at the famous Indianapolis Motor Speedway since 2003 when Tony Renna was killed in an IndyCar race and the youngest in the history of the 101-year-old race track.

"Words cannot adequately express the sadness of our company and our employees about this tragic incident," Jeff Belskus, the president and chief executive officer of the Speedway Corp, said. Meanwhile, Pedrosa gave his flagging hopes of winning the MotoGP title a boost with his third win of the season. The Spaniard passed Ben Spies on lap six and never looked back as he held on to triumph, ahead of Spies and Jorge Lorenzo, the championship leader, who maintained his record of finishing in the top three with a distant third place.

Lorenzo's lead over Pedrosa has now been cut to 68 points, and the Spaniard said he was disappointed with his race. "I didn't feel so good with my physical condition. The third lap I was tired and I was not able to make the same pace as in practice," he said. * Agencies

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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.”