Ben Ainslie of Britain waves a flag after winning the medal race in the Finn class sailing competition during the Beijing Games on Aug 17.
Ben Ainslie of Britain waves a flag after winning the medal race in the Finn class sailing competition during the Beijing Games on Aug 17.

Britain have taste for more medals



When Great Britain learned that the Olympic baton was going to be passed their way from the triumphant Chinese at the end of the Beijing Games, it was vital that they received it on a high. Nobody in the London 2012 hierarchy could have envisaged how high they would climb, however.

Even the most patriotic of Union Jack wavers would admit to being shocked by the amount of gold being carried on the specially engraved Jumbo Jet bound for Heathrow Airport yesterday. Even Queen Elizabeth II was moved to send a congratulatory message. Gordon Brown, the British Prime Minister, needless to say, followed suit. Forty seven medals had to find a way through the metal detectors blocking the way to the Beijing departure lounge towards flight BA 38 which now has a repainted golden nose. Nineteen of those prizes, remarkably, for a nation accustomed to making up the numbers at major global jamborees, were the most cherished of the three colours on offer.

A best Olympic haul for a whole century gives Britain a tremendous platform to put on a show to be proud of in four years' time, not just in terms of organisation, which will be hard pushed to get within a country mile of the excellent Chinese who did not have to worry about embarrassing, morale-sapping stories about going over budget. Under-achieving in the flagship Olympic sport of athletics, the British team more than atoned in the swimming pool, at the velodrome, on the high seas and calm lake to suggest that the chest thumping declaration that they can plunder even more precious metal as hosts is no idle boast.

Britain can consider themselves winner of the medal table for non-super powers, having finished fourth behind China, United States and Russia, a wonderful achievement considering the Olympic performances in recent years of nations such as Australia and Germany. They are aiming to go one better, presumably at Russia's expense, when they have home advantage in 2012, and though it is tempting to suggest they will collectively implode under the pressure of trying to surpass their Beijing brilliance, there is no obvious reason why they cannot exceed expectations a second time.

The cyclists, led by the flying Scotsman Chris Hoy, who was given the honour of carrying the flag at Sunday's handover ceremony in recognition of his golden treble, look like being the standard bearers. They were responsible for eight of the team's 19 golds and managed another six podium finishes. Sailors and rowers, two of Britain's traditionally strong Olympic sports contributed six of the golds but the most eye-catching performance of the British team was that of the freestyle swimmer Rebecca Adlington, who at the tender age of 19 was supposedly in Beijing to gain experience for a serious crack at gold in four years' time.

Instead, the bubbly blonde is preparing to defend titles at both the 400m and 800m in London and is now a celebrity in her home town of Mansfield, where a local hostelry has been renamed the Adlington Arms. Another new title, Dame Rebecca, will surely follow to mark her achievement of emulating the now Dame Kelly Holmes in Athens four years ago. A British woman winning one gold medal in the pool is a rarity - Anita Lonsborough was the nation's previous heroine way back in 1960 - winning two borders on the sensational.

The only blot on a British copybook was in the Bird's Nest Stadium where a comparatively paltry four medals were won. Only Christine Ohuruogu struck gold and even that was tarnished by the 400m runner serving a 12-month suspension for missing three drugs tests two years ago. Ohuruogu insisted after becoming Britain's 50th gold medallist in track and field that she does not care what people think or say. She should care and ensure that her reputation is never damaged again.

If Britain can maintain their level of success in the sports that were rewarding in Beijing, and re-establish themselves as an athletics nation, then the hosts of 2012 can expect to be as overjoyed as the hosts of 2008 who injected so much more time and money into their Olympiad of domination. wjohnson@thenational.ae

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Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz

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What is an ETF?

An exchange traded fund is a type of investment fund that can be traded quickly and easily, just like stocks and shares. They come with no upfront costs aside from your brokerage's dealing charges and annual fees, which are far lower than on traditional mutual investment funds. Charges are as low as 0.03 per cent on one of the very cheapest (and most popular), Vanguard S&P 500 ETF, with the maximum around 0.75 per cent.

There is no fund manager deciding which stocks and other assets to invest in, instead they passively track their chosen index, country, region or commodity, regardless of whether it goes up or down.

The first ETF was launched as recently as 1993, but the sector boasted $5.78 billion in assets under management at the end of September as inflows hit record highs, according to the latest figures from ETFGI, a leading independent research and consultancy firm.

There are thousands to choose from, with the five largest providers BlackRock’s iShares, Vanguard, State Street Global Advisers, Deutsche Bank X-trackers and Invesco PowerShares.

While the best-known track major indices such as MSCI World, the S&P 500 and FTSE 100, you can also invest in specific countries or regions, large, medium or small companies, government bonds, gold, crude oil, cocoa, water, carbon, cattle, corn futures, currency shifts or even a stock market crash. 

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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