Nadal to miss out on Shanghai



Rafael Nadal's dreams of ending a splendid year in fitting fashion with a first Masters Cup triumph in Shanghai next week have been shattered by a combination of fatigue and a knee injury sustained in Paris last week. Nadal would have been fancied to take the annual end-of-season showpiece which has been dominated in recent years by Roger Federer, the Swiss who he replaced as world No 1 a couple of months ago.

The Spaniard's withdrawal from the eight-man field, however, increases the chances of Federer, who recently won his fifth successive US Open, adding a fifth Masters Cup to his array of honours, providing his back injury, which also brought about an early departure from Paris, does not turn out to be too serious. Having been beaten in the finals of the French Open and Wimbledon by Nadal, the absence of the Spaniard will certainly increase Federer's determination to battle through the pain barrier to defend his title.

Britain's Andy Murray, beaten in the Flushing Meadows final by Federer but as strong as any player on the ATP tour in the closing weeks of the season, will also be given greater belief by the absence of the powerful Nadal, as will the third-ranked Novak Djokovic of Serbia. Nadal, 22, made what he said was one of the toughest decisions of his career when he decided to withdraw but he was mindful that the Davis Cup final between Spain and Argentina takes place only five days after the conclusion of the Shanghai tournament.

Unlike many of his counterparts in recent years, he has chosen to put the interests of his country ahead of personal glory. Nadal, who won his fourth French Open title and triumphed at Wimbledon during the summer, said: "It has been a long and difficult year where I managed to obtain great results. "I have mentioned on various occasions that the tennis calendar has been extremely hard with players performing practically every single week.

"This forces we players to put pressure on our bodies, making it impossible for a top-level player to be 100 per at each event." Nadal said the situation was made easier for him by the guarantee of ending the year as world No 1. "I don't know if this has been a mistake or not but the fact is that with the goal achieved I was able to take one of the most difficult and painful decisions. "I know that many people were speculating about this matter and even though I have not yet done any tests, I can honestly say I have taken the right decision.

"I want to recover and get ready for the Davis Cup final in Mar del Plata, Argentina. That is another reason for not going to Shanghai." Gilles Simon, the world No 9 from France, is the beneficiary of Nadal's withdrawal and will complete line-up for the tournament which begins on Sunday. wjohnson@thenational.ae

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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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