Feeling blasé about the lottery? Not the British treasury


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One of my favourite stories is about the businessman who goes home after hearing he's suddenly become rich. "Put your best fur coat on," he announces to his startled wife, "I've won $50,000 on the lottery." "Are you taking me out to celebrate?" she replies breathlessly. "No, I'm leaving you and I'm switching the heating off," he replies. If this gag doesn't go down quite as well in the small market town of Cirencester as other parts of the UK, that's only because it no longer has the power to shock. Far from representing a life-changing sum for the residents of this sleepy Wiltshire community, $50,000 (Dh183,650) would barely qualify as loose change down the back of the sofa.

Having already been the locale for several previous lottery winners, the town confirmed its status as a millionaire's hot spot this week when a couple woke to find they'd scooped the small matter of £56 million (about Dh318 million) on the Euromillions lottery. As well as making them the most popular neighbours in Britain, the repairman Nigel Page and his partner Justine Laycock found themselves pitchforked up to 980th place in the Sunday Times Rich List, alongside the heiress Elizabeth Tompkins and just ahead of the movie star Sir Michael Caine.

When they told Ms Laycock's daughter Georgia of the colossal sum that was now hers to inherit, her typically teenage reply also propelled her into another top 100: individuals displaying the most laid back response to world shattering events. Her one-word reaction - "Whatever -" - puts her in front of the actor Jim Broadbent upon receiving his first Academy Award ("stone the crows") and just behind the astronaut John Swigert's chillingly concise warning to Mission Control during the disastrous Apollo 13 mission: "Houston, we've had a problem here."

By any standard, the happy couple's new-found fortune is staggering. They can now buy 174 more houses like the one they already own, and even if they leave the sum to moulder in an average savings account they stand to earn more than $60,000 dollars a week in interest. Official photographs of the smiling couple behind a giant dummy cheque, sipping bubbly and looking fondly into each other eyes, were splashed all over the newspapers. They looked deliriously happy. Or did they? Mr Page certainly appeared so, but was there just a hint of anxiety in his partner's expression? It transpired that although the couple are in a stable relationship, they are both divorcees who have yet to tie the knot.

Thus the winning ticket, and the resultant cheque is Mr Page's alone: a small crumb of schadenfreude for the rest of us to suck on as we contemplate both her nervous smile and our own tottering finances. In any case, lottery history is littered with examples of individuals whose spectacular good fortune led ultimately to misery and despair (or so we can try and persuade ourselves). The UK's most famous winner, the Yorkshire housewife and bon viveur Viv Nicholson, ended her days in penury after spending herself into oblivion.

And even if Mr Page and Ms Laycock prosper, they may still find it difficult to preserve their reputation. The comedian Max Miller used to complain how he was always expected to pay for everyone within a 50-foot radius each time he stepped into a restaurant. Last week one of my most famous acquaintances, a leading Hollywood film director who must remain nameless (if only because I'm still hoping he'll give me a job one day), lamented in similar vein.

"However many times I put my hand in the pocket, I can guarantee the one time I don't there'll be someone ready to grumble about my mean-spiritedness," he complained to me over coffee. As if to prove the point, he then had to borrow a tenner off me for the taxi fare home after discovering he'd come out without any cash. Quod erat demonstrandum. Hopefully, the fact that Mr Page and Ms Laycock celebrated their windfall with a sandwich and a cup of tea rather than a bath of ass's milk suggests they'll handle their riches with both wisdom and sagacity; traits they'll need in similar quantities now that the world is beating at their door.

In fact rumour has it that Prime Minister Brown will be calling them this very week. Not, I suspect, to offer his congratulations, but to ask if he can borrow a few quid to help shore up the treasury. Michael Simkins is an actor and writer based in London

Manchester United v Liverpool

Premier League, kick off 7.30pm (UAE)

While you're here
Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Emirates Cricket Board Women’s T10

ECB Hawks v ECB Falcons

Monday, April 6, 7.30pm, Sharjah Cricket Stadium

The match will be broadcast live on the My Sports Eye Facebook page

 

Hawks

Coach: Chaitrali Kalgutkar

Squad: Chaya Mughal (captain), Archara Supriya, Chamani Senevirathne, Chathurika Anand, Geethika Jyothis, Indhuja Nandakumar, Kashish Loungani, Khushi Sharma, Khushi Tanwar, Rinitha Rajith, Siddhi Pagarani, Siya Gokhale, Subha Srinivasan, Suraksha Kotte, Theertha Satish

 

Falcons

Coach: Najeeb Amar

Squad: Kavisha Kumari (captain), Almaseera Jahangir, Annika Shivpuri, Archisha Mukherjee, Judit Cleetus, Ishani Senavirathne, Lavanya Keny, Mahika Gaur, Malavika Unnithan, Rishitha Rajith, Rithika Rajith, Samaira Dharnidharka, Shashini Kaluarachchi, Udeni Kuruppuarachchi, Vaishnave Mahesh

 

 

UJDA CHAMAN

Produced: Panorama Studios International

Directed: Abhishek Pathak

Cast: Sunny Singh, Maanvi Gagroo, Grusha Kapoor, Saurabh Shukla

Rating: 3.5 /5 stars

Water waste

In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.

Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.

A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.

The Emirates is the world’s third largest per capita water consumer after the US and Canada.

Gulf Under 19s final

Dubai College A 50-12 Dubai College B

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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COMPANY%20PROFILE
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Brief scores:

Toss: South Africa, chose to field

Pakistan: 177 & 294

South Africa: 431 & 43-1

Man of the Match: Faf du Plessis (South Africa)

Series: South Africa lead three-match series 2-0