ADIA has no plan to cut Europe exposure

According to Reuters, “The Abu Dhabi Investment Authority (ADIA) is not planning to cut its exposure to debt-ridden Europe, saying a stable regulatory, legal and tax framework make it an attractive place to invest.

“No, (we) maintain a stable view,” Jean-Paul Villain, strategy unit head at ADIA, told Reuters when asked whether the fund was looking to reduce its exposure in the face of Europe’s debt crisis. “These markets are efficient,” he said.

Sovereign funds, which together manage around $3 trillion of assets, are turning aggressive after cutting back their holdings in 2008 at the height of the credit crisis when they lost billions on banks such as UBS and Citigroup.  Speaking to Reuters on the sidelines of the Europlace Financial Forum in Paris, Villain said developed markets still offered attractions.

“The legal framework and tax framework is very stable. If you buy an infrastructure asset in the UK (for example), you have a clear … structure of regulation,” the former BNP Paribas executive said.

ADIA has assets of between $500 billion and $700 billion with investments ranging from Citigroup bonds to a stake in Britain’s Gatwick Airport.  State-owned ADIA invests funds generated by the United Arab Emirates, the world’s third-largest oil exporter, into overseas stocks and bonds as a means of diversifying away from the hydrocarbons sector.”

Read more: Reuters

Contact the writer or creator of this article or page.
Questions or comments: support(at)swfinstitute(dot)org
Follow on Twitter at @swfinstitute and @sovereignfunds
Learn, Attend and Network: Institutional Investor Events and Summits
Go Back: HOME: Sovereign Wealth Fund Institute

institutional investor investment mandates