Epic battle on the high seas



The announcement that the America's Cup is coming to the UAE next February - a decision which must first withstand a challenge in court rooms in the United States - rekindled memories of what remains the most dramatic day in the history of yachting which unfolded off the coast of Newport, Rhode Island in September 1983.

Until that memorable afternoon, the most important racing battles on the high seas had been regarded as something of a non-event by the watching public as the oldest trophy in international sport remained in the custody of the New York Yacht Club for 132 years. Taking its name from the victorious schooner America which invaded England in 1851 and showing unmatchable speed around the Isle of Wight to defeat its British host Aurora, the America's Cup was most definitely American until a bold challenge from Australia finally prevailed after 24 others had been sunk without trace.

Most of the vanquished vessels were sent over from the United Kingdom. Queen Victoria once famously asked who had won. "The Americans," she was informed. "Who came second?" she continued. "Ah, Your Majesty, there is no second," was the apocryphal reply. It looked like the unrated runner-up berth was again going to be filled by the visitors as Australia II, the 1983 vintage funded by Alan Bond and skippered by John Bertrand, got off to a slow start in that best-of-seven race series.

But after the penultimate battle in Atlantic waters Bertrand and his determined crew had drawn level with the "Liberty" yacht which had Dennis Conner at the helm. Yachting has never been a sport to get the juices flowing but rarely had so much excitement descended on a sports desk as was the case on England's Daily Telegraph that night when the cliche "Hold the back page!" was called out for real.

Other newspapers with less of a sailing connection than the Telegraph were also mesmerised by the possibility of history being made with the unfortunate Conner facing the ignominy of becoming the first US skipper to taste defeat. Communications were not great in those days and the initial belief was that Liberty was in command of the decisive heat but the office ticker tape machine eventually sent over the "snap" message that Australia II (Matilda as she became affectionately known) had waltzed home on the closing stretch. An ecstatic Bertrand celebrated the end of the longest winning streak in sport with the remark: "This puts yacht racing back on the map."

His exploits had, by all accounts, brought Australia to a standstill and Bob Hawke, the prime minister at the time, declared a public holiday in recognition of the extraordinary feat. That was the America's Cup's zenith and it brought about an unprecedented number of 13 challenges four years later before Conner earned the chance to win back his reputation and the trophy by guiding his next craft Stars and Stripes to an emphatic 4-0 victory over Australia's Kookaburra III.

Six times since then, the trophy has been put up for grabs, the latest winner being the Swiss craft Alinghi which emerged victorious in 2003 and made a successful defence against Emirates Team New Zealand three years ago. For the UAE even to be connected with this event is nothing short of amazing, although much water has to flow under the proverbial bridge before Alinghi sets sail from Ras al Khaimah to take on the challenge of BMW Oracle in February.

It promises to be a spectacle to compare with any of the host of major sporting events that have been attracted to this country in recent years. wjohnson@thenational.ae

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.”

COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

Based: Abu Dhabi

Sector: EdTech

Funding to date: $15 million

A timeline of the Historical Dictionary of the Arabic Language
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2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.