Established: 1976

US$ Billion: 627

Transparency Rating: 3

Firm Investment Style: Mixed

Entity Structure: Fund

Summary:

Established in 1976, the Abu Dhabi Investment Authority’s (ADIA) main funding source is from a financial surplus from oil exports. ADIA replaced the Financial Investments Board created in 1967 part of the then Abu Dhabi Ministry of Finance. It is rumored to be the largest of the Sovereign Wealth Funds. It is wholly owned and subject to supervision by the government of Abu Dhabi. The fund is an independent legal identity with full capacity to act in fulfilling its statutory mandate and objectives. As much as 80% of its assets are administered by external managers which includes around 60% that is passively managed through tracking indexed funds.

ADIA’s funding sources derives from oil, specifically from the Abu Dhabi National Oil Company (ADNOC) and its subsidiaries which pay a dividend to help fund ADIA and its sister fund Abu Dhabi Investment Council (ADIC). These payments are on a periodic basis if the Government runs a surplus to its budgetary requirements and other funding commitments. About receiving 70% of any budget surplus is sent to ADIA, while the other 30% of surplus goes to the Abu Dhabi Investment Council (ADIC).

The Abu Dhabi Investment Authority invests in a variety of asset classes. Benchmarks can range from the MSCI Index to the S&P 500 Index.

Some of their asset allocation consists of:

• Equities – Developed Markets
• Equities – Emerging Markets
• Hedge Funds
• Futures
• Sovereign Debt
• Corporate Debt
• Real Estate (Funds or Direct Investments)
• Private Equity
• Infrastructure

Governance:

ADIA’s Board of Directors is the supreme body having absolute control over ADIA’s offices and the control of its business. It is comprised of a Chairman, Managing Director and other board members, all of whom are senior government officials appointed by Ruler’s Decree. Key decisions are made by various committees.