What Is the Abu Dhabi Investment Council (ADIC)?
Abu Dhabi Investment Council (ADIC) is a sovereign wealth fund owned by way of the government of Abu Dhabi, the capital the city of the United Arab Emirates (UAE). ADIC is wholly owned and administered by way of the UAE and is funded by way of revenues generated by way of the country’s oil business. ADIC invests the ones revenues in quite a lot of asset classes, in conjunction with stocks, bonds, precise belongings, infrastructure, and private equity.
The Abu Dhabi Investment Authority (ADIA), one of the most necessary global’s largest sovereign wealth price range, spun off ADIC in 2007. ADIC was once part of Mubadala Investment Company in 2019, that could be owned by way of the government of Abu Dhabi.
Key Takeaways
- The Abu Dhabi Investment Council (ADIC) is a sovereign wealth fund owned by way of the government of Abu Dhabi that is in charge of investing the government’s financial assets.
- In 2019, ADIC merged with Mubadala Investment Company, which is an investment company moreover owned by way of the government of Abu Dhabi.
- The main source of revenue for Abu Dhabi comes from the oil business and sovereign wealth price range maximum continuously invest a country’s surplus reserves.
- ADIC invests in quite a lot of asset classes, in conjunction with stocks, bonds, precise belongings, infrastructure, and private equity.
- ADIC is reduce free the Abu Dhabi Investment Authority (ADIA), which spun off ADIC and is a separate sovereign wealth fund.
What Are Sovereign Wealth Worth vary (SWFs)?
Figuring out the Abu Dhabi Investment Council (ADIC)
The Abu Dhabi Investment Council sought to invest the government’s surplus oil revenues in a globally a lot of portfolio of actively managed how to generate sure risk-adjusted investment returns. Even supposing the fund invests in belongings around the world, the portfolio’s capital enlargement is used to increase Abu Dhabi’s financial machine and lend a hand local firms extend their global exposure.
Money from a country’s further reserves, set aside for investment to be informed its financial machine and residential population, maximum continuously composes a sovereign wealth fund (SWF). The funding for an SWF steadily comes from central monetary establishment reserves that collect on account of worth vary and trade surpluses or source of revenue derived from the export of natural assets.
ADIC’s investment strategies include relative value strategies, hedged equity strategies, macro strategies, fit driven strategies, and a systematic CTA.
Some countries liberate SWFs to diversify their source of revenue streams. For example, the UAE is dependent upon oil exports for its wealth. Because of this reality, it devotes a portion of its reserves to wealth price range that invest in various belongings to lend a hand give protection to the country from oil-related worth and supply risks.
Merger of the Abu Dhabi Investment Council (ADIC)
In March 2018, the UAE’s President issued a legislation merging ADIC into Mubadala Investment Company, each different UAE sovereign wealth fund, so as to reduce costs, streamline operations, and extra diversify the UAE’s financial machine after an extended length of low oil prices.
The merger of the two entities resulted in a blended investment portfolio of kind of $250 billion. As of 2021, Mubadala has $284 billion in belongings under keep an eye on.
Mubadala Investment Company was once based totally in 2017 as part of Abu Dhabi’s endeavor to extend its financial machine and create jobs by way of investing oil business proceeds into a hit firms. A couple of of Mubadala’s better-known investments include positions in Difficult Micro Units and EMI Track Publishing.
Are ADIA and ADIC the Equivalent?
No, the Abu Dhabi Investment Authority (ADIA) and the Abu Dhabi Investment Council (ADIC) don’t seem to be the an identical. ADIA spun off ADIC in 2007 and each and every are if truth be told separate investment entities managing the investments of Abu Dhabi.
Who Owns the Abu Dhabi Investment Authority?
The Abu Dhabi Investment Authority (ADIA) is owned by way of the Emirate of Abu Dhabi, which is part of the country of the United Arab Emirates. It is, therefore, a government-owned sovereign wealth fund.
Which Country Has the Biggest Sovereign Wealth Fund?
Sovereign wealth price range arrange the valuables of countries. Crucial sovereign wealth fund is Norges Monetary establishment Investment Keep an eye on in Norway. As of June 2022, it manages $1.36 trillion in belongings. The second-largest is China Investment Corporate in China, which manages $1.22 trillion. Abu Dhabi Investment Authority is the fourth-largest with $829 billion in belongings under keep an eye on (AUM). Mubadala, of which the Abu Dhabi Investment Council (ADIC) is now part of, ranks twelfth, with $284 billion in belongings under keep an eye on.
