More about Investment Company

An investment company occupies a significant position in the economic sector. It is an agency that actually propels growth in a country through the revenue collected from its shareholders and by investing it in other companies and projects on the behalf of the shareholders. An investment company is basically a corporation, trust or a partnership that collects funds of the investors through securities. Usually, small investors or domestic investors approach the investment companies for assisting them in their investment purposes. The profile of an investment company can also be defined as a financial intermediary. The role of the company can be defined as a link that is involved in trading of shares. It sells the shares and uses the revenue from the shares for investing in other projects.

Types of Investment Companies

With an increase in the number of investment avenues, different types of investment companies have been established that specialize in different investment ventures. The types of investment companies are as follows:

1) Mutual Funds: A mutual fund company is a firm that collects funds from the investors and invests this money in different areas like stocks, bonds, securities and in the tools of the money market. The shares of a mutual fund company is known as the net asset value or (NAV). The NAV is calculated in terms of the total value of the fund divided by the number of shares sold in the market. The mutual fund company has a fund manager who is in charge of the securities of the company. The mutual fund company realizes capital gains and losses as well as collects the dividend or interest income on behalf of the investors.

2) Close-end Funds: The close-end fund company is similar to the

mutual fund company, with the only difference being that there are only a limited number of hare available. In a close-end option, an investor can purchase shares from the secondary market. This implies that an investor purchases share from a broker, other investors or any other market maker. The real value of a share of a close-end fund depends upon the value of investment in the fund as well as on the premium that it carries in the market.

3) Investment Trust: Investment trusts refer to those types of firms that issue shares at a limited amount. The investors purchase these shares and in this way revenues are pooled and invested in various other companies. These companies do not comprise of any employees and only have a board of directors.

Abu Dhabi Investment Company

The global economic scene has undergone a drastic change. Apart from countries like the United States, United Kingdom, Germany, France and such other countries, there are other countries that are already established as investment and trade hubs. The Gulf countries are prominent with United Arab Emirates leading the foray. Abu Dhabi, the capital of United Arab Emirates (UAE) is the richest emirates in the country. Hence, it is not surprising that it is also the financial capital of the country. Hence, several large investment corporations have made Abu Dhabi their base and operate on a national as well as international level from this base. One such giant company is the Abu Dhabi Investment Company (ADIC).

Features of ADIC

The ADIC is a company that has an extensive profile and is an experienced player in the field of investment market. With the support of in-depth business analysis and accurate strategies, the company has built a sound market reputation over the years. The features or spheres in investments in which the firm delves in is as follows:

1) Private Equity: The company works extensively in the field of private equity. Its expertise lies in sourcing, appraising and investing in those companies and private equity funds that are not quoted. This action is backed by a long-term investment portfolio in order to increasing returns to the risk. The private equity portfolio of the company currently deals with direct investments from UAE. It also comprises of limited partnership fund investments in countries across Europe, Asia and the United States.

2) Corporate Finance: The firm is one of the pioneers in developing the capital market in the country. ADIC provides extensive investment banking services to the private and the public sectors. The organization also deals with initial public offerings, acquisitions and disposals, privatizations as well as project financings.

3) Local Shares: The company deal with local equities that are listed on the tock exchanges of not just UAE but also on those of Oman, Saudi Arabia, Kuwait, Qatar and Bahrain. The fund managers in the company ensure that the market returns and profits are replicated.

4) Real Estate: The Company has a well-established real estate section that deals with the appraisal and investment in real estate properties. This section has acquired great prominence of late due to the major buoyancy in the real estate market in the Gulf countries. ADIC attempts to concentrate on medium and long-term portfolios and on UK and US centric fund investments. This is essential as it helps in diversifying the real estate market risk on the local basis.

5) Alternative Investment: The ADIC also specializes in investments in hedge funds across all investment strategies. The company focuses on diverse portfolios for proprietary capital. The company also aims at becoming a solution provider in the years to come. The main role of the company is to cover all the relevant data in such a way that risk-to-returns ratio is maximized greatly.

These are just a few of the investment aspects that are covered by the Abu Dhabi Investment Company. The company has made its presence felt in the areas of treasury, capital markets and overall financial management.