Abu Dhabi Investment Council

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Abu Dhabi Investment Council
مجلس أبوظبي للاستثمار
Sovereign wealth fund
Industry Institutional investor
Founded 2007
Headquarters Abu Dhabi, United Arab Emirates
Key people
HH Sheikh Mohammad Bin Zayed Al Nahyan, Chairman
HE Eissa Mohamed Al Suwaidi, Managing Director
Number of 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.[1]

History[edit]

The Abu Dhabi Investment Council was splintered off from the Abu Dhabi Investment Authority (ADIA) in 2007 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] From Autumn 2013 the Council will be based at Al Bahr Towers.[3]

Investment strategy[edit]

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:[4]

Notably in 2008, the Council acquired 90% ownership of New York's landmark Chrysler Building.[5][6]

Business functions[edit]

Office of the Managing Director[edit]

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.[7]

Active Investment Strategies[edit]

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:[8]

  • Relative Value Strategies
  • Hedged Equity Strategies
  • Macro Strategies
  • Event Driven Strategies
  • Systematic CTA

Direct Investments[edit]

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.[9]

Equities and Fixed Income[edit]

The Equities and Fixed Income Department manages listed portfolios concentrated in the following areas:[10]

  • 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

Global Special Situations[edit]

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.[11]

Infrastructure Investments[edit]

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.[12]

Real Estate[edit]

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.[13]

Private Equity[edit]

The Private Equity Department places funds in global private equity markets and invests directly primarily alongside its managers.[14]

Support Functions[edit]

Various functions support the investment and non-investment activities of the Council. They include:[15]

  • 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

Board of Directors[edit]

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.[16]

Chairman of the Board:

HH Sheikh Mohammad Bin Zayed Al Nahyan

Members of the Board:

HH Sheikh Sultan Bin Zayed Al Nahyan

HH Sheikh Mansour Bin Zayed Al Nahyan

HH Sheikh Hamed Bin Zayed Al Nahyan

HE Mohammed Bin Habroush Al Suwaidi

HE Eissa Mohamed Al Suwaidi (Managing Director)

HE Younis Haji Khoori

See also[edit]

References[edit]

  1. ^ "History". Adcouncil.ae. Retrieved August 23, 2013. 
  2. ^ "Abu Dhabi Investment Council | Sovereign Wealth Fund Institute". Swfinstitute.org. February 24, 1977. Retrieved August 23, 2013. 
  3. ^ "ADIC Towers Abu Dhabi designed by Aedas". desMena. Retrieved August 23, 2013. 
  4. ^ "Investment Strategy". Adcouncil.ae. Retrieved August 23, 2013. 
  5. ^ Bagli, Charles V. (July 10, 2008). "Abu Dhabi Buys 90% Stake in Chrysler Building". The New York Times. Retrieved January 14, 2017. 
  6. ^ Frangos, Alex (July 10, 2008). "Abu Dhabi Fund Acquires Most of Chrysler Building". The Wall Street Journal. Retrieved January 14, 2017. 
  7. ^ "Office of the Managing Director". Adcouncil.ae. Retrieved August 23, 2013. 
  8. ^ "Active Investment Strategies". Adcouncil.ae. Retrieved August 23, 2013. 
  9. ^ "Direct Investments". Adcouncil.ae. Retrieved August 23, 2013. 
  10. ^ "Equities and Fixed Income". Adcouncil.ae. Retrieved August 23, 2013. 
  11. ^ "Global Special Situations". Adcouncil.ae. Retrieved August 23, 2013. 
  12. ^ "Infrastructure Investments". Adcouncil.ae. Retrieved August 23, 2013. 
  13. ^ "Real Estate". Adcouncil.ae. Retrieved August 23, 2013. 
  14. ^ "Private Equity". Adcouncil.ae. Retrieved August 23, 2013. 
  15. ^ "Support Functions and Business Assurance". Adcouncil.ae. Retrieved August 23, 2013. 
  16. ^ "Board of Directors". Adcouncil.ae. Retrieved August 23, 2013. 

External links[edit]