Sovereign Wealth: The ADIA

The Abu Dhabi Investment Authority is the world’s largest sovereign wealth fund

 [www.adia.ae]

The money from the sale of oil and gas from the Emirate of Abu Dhabi, is then given to the Abu Dhabi Investment Authority, to invest globally, and provide an income to Abu Dhabi, but also de-risk and diversify the reliance on the sale of oil and gas.

Created in 1967, has developed a Portfolio with this break down:

Development Market Equities      32.00% – 42.00%

Emerging Market Equities            10.00% – 20.00%

Small Cap Equities                       1.00% – 5.00%

Government Bonds                      10.00% – 20.00%

Credit                                           5.00% – 10.00%

Alternative                                    5.00% – 10.00%

Real Estate                                   5.00% – 10.00%

Private equity                                2.00% – 8.00%

Infrastructure                                1.00% – 5.00%

Cash                                             0.00% – 10.00%

The Abu Dhabi Investment Authority does not publish the assets under management, but it is considered to have about US$800 Billion = £505 Billion.

Salient Information:

9.9% stake in Thames Water. Approximately 80% of ADIA’s assets are managed by external fund managers. Approximately 60% of ADIA’s assets are invested in index-replicating strategies. 1275 Employees.

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