Spanish boat Mapfre sails during the in-port race in Alicante, Spain to begin the 2014/15 Volvo Ocean Race on Saturday. David Ramos / Getty Images / Volvo Ocean Race / October 4, 2014
Spanish boat Mapfre sails during the in-port race in Alicante, Spain to begin the 2014/15 Volvo Ocean Race on Saturday. David Ramos / Getty Images / Volvo Ocean Race / October 4, 2014

Volvo Ocean Race notebook: Pit stop at The Hague; busy Spanish skipper



Pit stop at The Hague

It was a late addition to the itinerary, and while the Volvo Ocean Race’s stop at The Hague will be the briefest on the nine-month race, the impact could be significant. Race officials say the sailing-crazed residents of the Netherlands could turn up in seven figures when the VOR fleet sails into the harbour, where grandstands will be erected for fans. “The ambition is to get a million people,” said Knut Frostad, the race’s chief executive. The other stops on the event’s round-the-world map itinerary are measured in days and weeks. The Hague will be measured in hours. “It’s not really a stopover, but more of a pit stop,” Frostad said. The boats will be in port between 12 and 24 hours, he said, before leaving the next day for Sweden and the finish line. Frostad said The Hague was added after consulting with sponsors, who were absolutely interested. The Dutch Team Brunel also drives interest. “The reason we do it is because the Netherlands is probably our biggest area of interest and engagement,” Frostad said. Boats will leave The Hague in spaced time intervals based on where they finished the day before.

40,557 for in-port race

With perfect weather and moderate winds, the turnout for the in-port race on Saturday was so good, it was difficult to manoeuvre through the onshore race village. Fans watched from along the pier and the beach-front areas, too. In the dock areas, fans lined up a half-dozen deep to get views and snap photos of the boats. Race officials estimated that 40,557 were in attendance, a number that should be eclipsed when the regatta heads out for the first leg, to South Africa, next Saturday. Frostad, given the attendance figure, said: “That is a good day of sailing.”

Double duty

Iker Martinez, skipper of the Spanish entry, Mapfre, is an Olympic gold medallist who is still involved in that aspect of the sport. When he was offered the job of running the Spanish crew, he had to navigate through some congested water, occupationally. “I told them, ‘Look, this is what I can offer’,” he said. “It was some days on one boat, some days on the other.” The Spanish boat signed up in June as the sixth of the seven Volvo entries. Martinez says the Volvo event now occupies 100 per cent of his attention.

Flotsam and jetsam

Volvo officials have an agreement with Spanish officials to start the race in Alicante in 2017/18, but no contracts have been signed beyond that point. Race headquarters are located in the port city. ... The race winners receive no prize money. ... Race rookie Charlie Enright, the American skipper of the Alicante team who won the in-port race on Saturday, turned 30 last week. Only one member of the Alvimedica team, a joint US/Turkey venture, is age 40 or older, making it the youngest crew on the water. By comparison, the oldest skipper in the fleet, Brunel’s veteran Dutchman Bouwe Bekking, is 51 and has logged six trips around the world in the Volvo event previously. ... The all-female Swedish boat, SCA, logged its first win yesterday, in the first of two pro-am events in the Alicante harbour, where teams raced with guests aboard.

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1st Test November 23-27, The Gabba, Brisbane

2nd Test December 2-6, Adelaide Oval, Adelaide

3rd Test Dcember 14-18, Waca, Perth

4th Test December 26-30, Melbourne Cricket Ground, Melbourne

5th Test January 4-8, Sydney Cricket Ground, Sydney

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.

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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.

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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.”

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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