Abu Dhabi Investment Council
Added on 2021-04-19
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[ Abu Dhabi Investment Council
ADICAnswer to 1Abu Dhabi Investment Council or the ADIC is an investment arm of Abu Dhabi government. It is primarily a sovereign wealth fund that is owned by the UAE (United Arab Emirates). Further, it is liable for investing the surplus funds of the government through an internationally diversified investment strategy. It intends to target positive capital returns withthe help of an expansive portfolio of active investment management strategies and highly widespread class assets (Bloomberg, 2018). The council is also entrusted with the power to mandate the direct investment to widen the economic base of Abu Dhabi and facilitate the global development of domestic companies. The council initiated its operations from April 2007 and intends on becoming an efficient institution of managing assets and creating returnsas well.Answer to 2ADIC invests in real estates, private equity, infrastructure, public equity, hedge funds, and fixed income markets throughout the world. For the purpose of its public equity investments, the council intends to invest in small cap and large-cap companies. Moreover, the council’s fixed income investment is primarily diversified credit and emerging debt securities that are associated with sovereign and international inflation (Gulf news UAE, 2018). Besides, the council’s investment of hedge funds comprises of investment in funds that further invests across hedge equity strategies, relative value strategies, event-driven strategies, macro strategies, and systematic CTA. For private equity investments, ADIC makes secondary, direct, and fund of fund investments in private markets and both listed and unlisted companies throughout the world. Its other investments include infrastructure and real estates as well.Answer to 3Abu Dhabi needed a new vehicle to invest few of its oil receipts in order to compete with Abu Dhabi Investment Authority that was regarded as government’s longstanding arm of investment and largest Arab institutional investor. Since the risk of government was getting higher day-by-day, ADIC was formed with a purpose of setting up a balanced portfolio of investments throughout all classes and sectors of assets, thereby diversifying the government’s risk. Nonetheless, the council was formed to differentiate itself from ADIA with a particular focus on investments within the Middle East together with facilitating international investments (ADIC, 2018). Hence, this was the major purpose behind the 2
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