Stanislas Wawrinka, left, changes ends with Roger Federer during their third round match of the Monte Carlo Masters.
Stanislas Wawrinka, left, changes ends with Roger Federer during their third round match of the Monte Carlo Masters.

Wawrinka nets first win over Federer



MONTE CARLO // Roger Federer's honeymoon at the Monte Carlo Masters ended abruptly when he lost 6-4, 7-5 to fellow Swiss Stanislas Wawrinka in the third round tonight. The duo are close friends and captured the Olympic doubles title together in Beijing but today Wawrinka was in no mood to be charitable towards his more celebrated, and newly married, countryman. However, once the 13th seed had sealed his first career win over Federer, his celebrations were rather muted.

"It was not an easy match but of course I am happy to have won it," Wawrinka said after completing the match that had been delayed by more than five hours due to rain. "It is maybe not the most spectacular tennis but it's my most beautiful victory, yes. "(But) I am a bit embarrassed to celebrate it." Wawrinka will face Andreas Beck for a place in the last four after the German qualifier beat the Argentine Juan Monaco 3-6, 6-2, 7-5.

Federer, who married his longtime girlfriend Mirka Vavrinec on Saturday, decided to take part in the European season's opening claycourt tournament in the last minute. However, a few minutes after being shown the exit, the second seed refused to blame the defeat on his lack of preparation. "Well, it's the problem for everyone. Nobody had a preparation. Slim excuse, because it's the same for everyone," he said.

Federer acknowledged he needed to make some serious adjustments to his claycourt game. "I came again this year because it just gives you information going into your practice sessions, what you need to work on," said Federer, runner-up at the principality for the last three years. "Today definitely my serve wasn't working. I haven't served my best throughout the season, so I have to make sure I get my serve back in... because I just don't hit the spots when I really want to."

The second seed Federer, who has not won a singles title this year, struggled with his serve and Wawrinka snatched a break on his sixth attempt in the seventh game. He wrapped the opening set as the 13-times grand slam winner netted an easy forehand. Federer dropped serve in the first game of the second set but broke straight back, charging to the net to save another break point at 3-3. Federer was under pressure again in the 11th game and found himself with his back to the wall after sending yet another forehand wide as Wawrinka was serving for the match.

He had two break points but Wawrinka kept his composure to save them and wrapped up the win on his first match point with a backhand winner down the line. Spain's Fernando Verdasco, seeded seventh, flashed past compatriot and 10th seed David Ferrer with a 6-2, 6-1 victory to set up a meeting with either Albert Montanes of Spain or the world No 3 Novak Djokovic of Serbia. *Reuters

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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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