Soweto final captures the immagination


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JOHANNESBURG // World Cup fever may be taking a grip on South Africa, but for a couple of hours tomorrow the nation's focus will be fixed on rugby and a unique Super 14 final. The all-South African decider, just the second in Super rugby history, pits the Pretoria Bulls, the defending champions, against the Cape Town Stormers - who are playing their first final - at Soweto's Orlando Stadium.

The venue has captured the imagination of South African sports fans. Rugby, predominantly popular among whites, will stage its showdown in the township home of one million mainly poor blacks. Desmond Tutu, the crusading archbishop, said the Bulls' choice to go to Soweto - their Loftus Versfeld stadium is being prepared for the World Cup - was "the most important development in the sport since the Springboks won the World Cup in 1995".

"It is one of those special South African moments that proves we are better off for having one another," said Tutu, a Stormers supporter. The country's main rugby television show, Boots and All, will broadcast live from Soweto with Winnie Madikizela Mandela, the former wife of Nelson Mandela and a leading figure in Soweto, as one of its guests. The broadcast will take place from Soweto's famous Vilikazi Street, once the home to Tutu and Mandela, which is a stone's throw from the Orlando Stadium.

The game at the 40,000-seat stadium is a sellout, with tens of thousands of Bulls supporters again expected to make the trek from the nation's capital to the outskirts of Johannesburg to experience the township culture - that until a week ago was foreign to many of them. The Bulls beat New Zealand's Canterbury Crusaders in the first semi-final last weekend and the Stormers followed up with a victory over Australia's New South Wales Waratahs in Cape Town.

The Bulls will play for a second successive title and a third in four years against the Stormers, who have belatedly reached a final after losing in the semi-finals in 1999 and 2004. Frans Ludeke, the Bulls coach has recalled Gerhard van den Heever, his leading try-scorer, in the only change to the starting 15 after the wing's return from a two-week suspension. Van den Heever is one of just two starters in the vastly experienced Bulls team who have not won a Super 14 title before.

"The guys have worked very hard to get this far," Ludeke said. "We have created the opportunity to be part of something special, now we need to embrace it." The Stormers have the best defensive record in the competition, while the Bulls are the top points scorers. Allister Coetzee's Stormers have just one player with Super 14 final experience in their ranks, Bryan Habana, the Springboks winger, who won with the Bulls in 2007 and 2009 before his move to Cape Town in the off-season.

Coetzee has said his team will be boosted by Habana's presence as they attempt to ignore the distractions of the occasion and focus on capturing a first Super rugby title. "Although it's a Super 14 final and it's between SA teams, whatever comes with that, we have to embrace that," Coetzee said. "We have a saying of blocking out external factors. The players know the pressures that come with the job and they need to block that out."

* AP

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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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