Abu Dhabi Investment Council
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| Type | Sovereign wealth fund |
|---|---|
| Industry | Institutional investor |
| Founded | 2007 |
| Headquarters | Abu Dhabi, United Arab Emirates |
| Key people | HH Sheikh Khalifa bin Zayed Al Nahyan, Chairman HE Khalifa Mohammed Al Kindi, Managing Director |
| Employees | 199 (2011) |
| Website | www.adcouncil.ae |
The Abu Dhabi Investment Council (The Council) is an investment arm of the Government of Abu Dhabi. It started operations in April 2007 and is responsible for investing part of the government’s surplus financial resources through a globally diversified investment strategy, targeting positive capital returns through an expansive portfolio of highly diversified asset classes and active investment management strategies. The Council is also empowered with a direct investment mandate to broaden Abu Dhabi’s economic base and facilitate the international development of local companies.[1]
The Abu Dhabi Investment Council was splintered off from the Abu Dhabi Investment Authority (ADIA) and took over all local subsidiaries previously owned by ADIA including Abu Dhabi Commercial Bank, National Bank of Abu Dhabi and Abu Dhabi Investment Company (Invest AD).[2]
Contents |
[edit] Investment Strategy
The investment strategy of the Council seeks to achieve superior risk-adjusted returns across the entire capital structure while preserving capital. Although the Council invests globally, there is a strong focus of investing in Abu Dhabi's economy. Some of its significant investments include:[3]
- National Bank of Abu Dhabi (70.48%)
- Abu Dhabi Commercial Bank (64.84%)
- Union National Bank (50.01%)
- Al Hilal Bank (100.00%)
- Abu Dhabi National Insurance Company (23.80%)
- Abu Dhabi Aviation Company (30.00%)
- Abu Dhabi Investment Company (Invest AD) (98.00%)
- Abu Dhabi National Chemicals Company (40.00%)
- Chrysler Building (90.00%)
[edit] Business Functions
[edit] Office of the Managing Director
The Managing Director is the highest ranking officer within the Council. He reports to the Board of Directors and is responsible for the operations of the Council.[4]
[edit] Active Investment Strategies
The Active Investment Strategies Department aims to generate superior risk adjusted returns by investing in Hedge Funds and similar active trading mandates across different strategies, globally. The department co-invests in individual transactions by partnering with Hedge Funds and takes GP stakes in Hedge Funds and/or Seed Hedge Funds. Some of the global mainstream strategies include:[5]
- Relative Value Strategies
- Hedged Equity Strategies
- Macro Strategies
- Event Driven Strategies
- Systematic CTA
[edit] Direct Investments
The Direct Investments Department invests directly in listed and unlisted companies across the globe, with a particular emphasis on the MENA Region. It is focused on creating a concentrated portfolio of highly uncorrelated securities reflecting the broad nature of investment opportunities the Council is exposed to. In this respect, investments are considered for their intrinsic characteristics rather than within a portfolio context. In addition, it is also responsible for monitoring and optimizing the value of the Council's legacy portfolio consisting of 12 investments in local financial institutions and other prominent companies.[6]
[edit] Equities and Fixed Income
The Equities and Fixed Income Department manages listed portfolios concentrated in the following areas:[7]
- Equities that include Global and Regional Large Cap Equities, Emerging Market Equities and Small Cap Equities
- Fixed Income that includes Sovereign, Global Inflation Linked, Credit and Emerging Debt Securities
[edit] Global Special Situations
The Special Situations Unit invests in one-off opportunities that may not fit in any of the Council’s asset classifications yet generate a higher return than other asset classes. These investments are placed both directly and through managed funds.[8]
[edit] Infrastructure Investments
The Infrastructure Investments Department is responsible for building a portfolio of global infrastructure investments as well as contributing to the growth of the local economy through participation in local developments. Its investments target large-scale public systems that are vital to countries’ economies including transportation, communication, utilities & power and social infrastructures (i.e. schools and hospitals). Exposure to these investments is gained mainly through externally managed funds, but also includes the possibility of co-investments in suitable infrastructure projects.[9]
[edit] Real Estate
The Real Estate Department invests in global markets through externally managed funds as well as targeted direct investments by building relationships with managers, deploying stringent selection criteria, and executing a broad diversification strategy with respect to geography, size, timing and investment philosophy.[10]
[edit] Private Equity
The Private Equity Department places funds in global private equity markets.[11]
[edit] Support Functions
Various functions support the investment and non-investment activities of the Council. They include:[12]
- Accounting & Financial Services providing cash management, investment accounting and reporting, and custodial services
- Human Resources providing recruitment, talent management, and career development services
- Information Technology providing platform, systems, solutions, and data services
- General Services providing logistics and facilities support services
- Management Accounts providing payroll, accounts payables, and expense management services
[edit] Board of Directors
The Board of Directors is the highest authority within the Council and is composed of a Chairman, Managing Director and other board members, all of whom are senior government officials appointed by Decree from the Ruler of Abu Dhabi.[13]
HH Sheikh Khalifa bin Zayed Al Nahyan - Chairman
HH Sheikh Sultan Bin Zayed Al Nahyan - Member
HH Sheikh Mohammad Bin Zayed Al Nahyan - Member
HH Sheikh Mansour Bin Zayed Al Nahyan - Member
HH Sheikh Hamed Bin Zayed Al Nahyan - Member
HE Mohammed Bin Habroush Al Suwaidi - Member
HE Khalifa Mohammed Al Kindi - Managing Director
HE Younis Haji Khoori - Member
[edit] Management
Omar Liaqat - Chief Operating Officer
David Beau - Chief Investments Officer
Hashem F Al Kudsi - Executive Director, Active Investment Strategy
Khalifa Sultan Ahmad Al Suwaidi - Executive Director, Direct Investments
HE Eissa Mohammed Ghanem Al Suwaidi - Executive Director, Equity and Fixed Income
HE Ahmad Ateeq Mohammed Al Mazrouei - Executive Director, Infrastructure
Khaled Balama - Executive Director, Real Estate
Salem Mohammed Al Ameri - Executive Director, Private Equity
Hamad Al Hur Al Suwaidi - Executive Director, Corporate Services
[edit] References
- ^ http://www.adcouncil.ae/AboutUs/History/tabid/92/Default.aspx
- ^ http://www.swfinstitute.org/swfs/abu-dhabi-investment-council/
- ^ http://www.adcouncil.ae/AboutUs/InvestmentStrategy/tabid/63/Default.aspx
- ^ http://www.adcouncil.ae/BusinessFunctions/OfficeoftheManagingDirector/tabid/90/Default.aspx
- ^ http://www.adcouncil.ae/BusinessFunctions/ActiveInvestmentStrategies/tabid/71/Default.aspx
- ^ http://www.adcouncil.ae/BusinessFunctions/DirectInvestments/tabid/67/Default.aspx
- ^ http://www.adcouncil.ae/BusinessFunctions/EquitiesandFixedIncome/tabid/70/Default.aspx
- ^ http://www.adcouncil.ae/BusinessFunctions/GlobalSpecialSituations/tabid/91/Default.aspx
- ^ http://www.adcouncil.ae/BusinessFunctions/InfrastructureInvestments/tabid/69/Default.aspx
- ^ http://www.adcouncil.ae/BusinessFunctions/RealEstate/tabid/68/Default.aspx
- ^ http://www.adcouncil.ae/BusinessFunctions/PrivateEquity/tabid/66/Default.aspx
- ^ http://www.adcouncil.ae/BusinessFunctions/SupportFunctions/tabid/94/Default.aspx
- ^ http://www.adcouncil.ae/AboutUs/BoardofDirectors/tabid/57/Default.aspx
