Abu Dhabi Investment Council (ADIC)
What is the Abu Dhabi Investment Council?
Abu Dhabi Investment Council (ADIC) is a sovereign wealth fund owned by the government of Abu Dhabi, the capital city of the United Arab Emirates (UAE). ADIC is wholly owned and administered by the UAE and is funded by revenues created by the country's oil industry. ADIC invests these revenues in an assortment of asset classes, including stocks, bonds, real estate, infrastructure and private equity.
The Abu Dhabi Investment Authority (ADIA), one of the world's biggest sovereign wealth funds, turned of ADIC in 2007.
Figuring out the Abu Dhabi Investment Council (ADIC)
The Abu Dhabi Investment Council tried to invest the government's surplus oil revenues in a globally different portfolio of actively overseen systems to create positive risk-adjusted investment returns. Although the fund invests in assets around the world, the portfolio's capital growth is utilized to extend Abu Dhabi's economy and assist local companies with expanding their international exposure.
Money from a country's excess reserves, set to the side for investment to benefit its economy and domestic population, typically creates a sovereign wealth fund (SWF). The funding for a SWF frequently comes from central bank reserves that gather due to budget and trade surpluses or revenue derived from the export of natural resource. A few countries send off SWFs to differentiate their revenue streams. For example, the UAE depends on oil exports for its wealth. Thusly, it gives a portion of its reserves to wealth funds that invest in diversified assets to assist with safeguarding the country from oil-related price and supply risks.
As of March 2018, ADIC collected $123 billion in total assets. First Abu Dhabi Bank, a longtime holding and the UAE's biggest bank, stays as perhaps of its most noticeable domestic investment. Different holdings incorporate Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank, the last option of which ADIC established. The wealth fund also keeps up with sizable investments in local insurance, investment and aviation companies.
Recent Merger of Abu Dhabi Investment Council
In March 2018, the UAE's President issued a law blending ADIC into Mubadala Investment Company, another UAE sovereign wealth fund, with an end goal to decrease costs, streamline operations and further differentiate the UAE's economy after an extended period of low oil prices. The merger of the two elements brought about a combined investment portfolio of roughly $250 billion.
Mubadala Investment Company was established in 2002 as part of Abu Dhabi's undertaking to widen its economy and make occupations by investing oil industry proceeds into beneficial companies. Some of Mubadala better-realized investments remember positions for Advanced Micro Devices and EMI Music Publishing.