Lewis Hamilton locked up his rear tyres pushing too hard for pace but he did enough earlier to grab the pole position in Spielberg, Austria. Leonhard Foeger / Reuters
Lewis Hamilton locked up his rear tyres pushing too hard for pace but he did enough earlier to grab the pole position in Spielberg, Austria. Leonhard Foeger / Reuters
Lewis Hamilton locked up his rear tyres pushing too hard for pace but he did enough earlier to grab the pole position in Spielberg, Austria. Leonhard Foeger / Reuters
Lewis Hamilton locked up his rear tyres pushing too hard for pace but he did enough earlier to grab the pole position in Spielberg, Austria. Leonhard Foeger / Reuters

Twists in Austrian Grand Prix qualifying but plot stays same with Mercedes in front


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The build-up to qualifying for today’s Austrian Grand Prix had all the expectations of throwing up – as far as this season is concerned – something different.

Sebastian Vettel, who had been the fastest man in practice on Friday in his Ferrari at the Red Bull Ring, did it again in yesterday morning's final practice ­session.

Add to that the fact conditions were damp after a heavy rain shower before qualifying and there was every indication that Mercedes-GP’s domination of Saturday afternoons, which had seen them claim 18 pole positions in a row, may have been about to end.

It was not to be. Anyone harbouring a desire to see a different looking line-up at the front of a Formula One grand prix this season were left disappointed as Lewis Hamilton and Nico Rosberg locked out the front row for the sixth time in eight races.

How the Mercedes pair finished qualifying was different, though, with Hamilton spinning off at Turn 1 on his final lap, while teammate Rosberg slid wide at the last corner and only just avoided making contact with the barriers as his car rolled into the gravel.

Despite those incidents today’s duel for victory in Austria will be again a private affair between the two Mercedes.

It was the sixth pole of the season for Hamilton and the 45th of his career.

The world champion said that he had been fortunate to record his time of one minute, 08.455 seconds and take pole.

“Naturally I was thinking I’d probably lost it there,” he said. “I’m grateful I had one decent Q3 run. I was pushing that bit extra on the next run and just locked the rears.”

Rosberg, who was two-10ths slower than Hamilton going into his final lap, was striving for more when he careered across the run-off and into the gravel just as it seemed he was going to be quicker.

“I went on the Astro Turf out of the second-to-last corner. Maybe that was still a bit wet or something or I just overdid it after that, I’m not sure,” the German said.

““I knew I had to go for it. I just lost it there into the last corner.”

For Rosberg the start will again be crucial this afternoon.

The narrative this season has been mostly that the man at the front has dictated the pace of the race with the design of cars making it difficult to follow close behind a car without losing downforce and causing damage to the fragile Pirelli tyres.

Rosberg has often been well-matched on pace on a Sunday afternoon to his world champion teammate, but has been powerless to do anything more than follow, as was the case in Australia, China, for most of Monaco and then two weeks ago in Canada.

It is a long run to Turn 1 at the Red Bull Ring and then there is a long straight to Turn 2.

If Rosberg can get off the line well, he will have a strong chance of at least pressuring Hamilton for the lead. The German knows he needs track position to control his destiny and close the 17-point deficit to his teammate in the drivers’ standings.

Qualifying turned out to be a sobering experience for Vettel as, after he had promised so much early in the session, he will start from third on the grid.

He acknowledged his Ferrari did not have the power when it mattered to fight Mercedes.

“Generally, the Mercedes-powered cars can turn up the performance a bit,” the four-time world champion said.

“Even the Williams were also a lot closer than they were in practice.”

Both Red Bull Racing’s drivers Daniel Ricciardo and Daniil Kvyat have 10-place grid penalties as a result of engine replacements.

There was an element of farce in the session with McLaren’s Fernando Alonso and Jenson Button each facing 25-place grid penalties in a field of just 20 cars for exceeding their allocation of power unit components for the season.

Alonso qualified 15th, Button was 17th and both will have to serve time penalties today as well as starting from the back.

* with 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.”

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