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Abu Dhabi Investment Authority’s internally managed assets grow to 64% of portfolio

Sovereign fund publishes '2023 Adia Review'

Published: Thu 14 Nov 2024, 4:46 PM

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  • WAM

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The Abu Dhabi Investment Authority headquarters.

The Abu Dhabi Investment Authority headquarters.

The Abu Dhabi Investment Authority’s (Adia) assets managed internally has grown from 55 per cent in 2022 to 64 per cent in 2023.

According to the sovereign wealth fund’s 2023 Adia Review, the MSCI World Index rose 24 per cent in 2023, with most of the gains coming in the last few months of the year as risk appetite surged.

Meanwhile, fixed-income markets moved in lockstep with equities once again, rising late in the year as investors anticipated interest rate cuts.

“It was a more nuanced picture for private assets as high interest rates complicated deal economics,” added the report.

Adia said it was well positioned to capitalise on the strong gains in parts of these markets, while benefiting from dislocations in areas where conditions were more challenging.

In recent years, Adia has sought to emphasise total returns at a portfolio level, in contrast to the more traditional approach of tasking individual asset classes to outperform benchmarks.

The 2023 Adia Review includes a detailed analysis of market conditions across the many asset classes in which the authority invests and significant developments within each investing department.

In private equity, Adia has leveraged its decades-long relationships in the sector to broaden and deepen how it accesses the sector and ultimately enhance returns.

In 2023, Adia’s allocation to private equity grew to 12 per cent-17 per cent of Adia’s total portfolio, in comparison with 10 per cent-15 per cent in 2022.

Adia believes that several interconnected, global transitions are currently underway: technological, economic, and energy-related, among various others. The authority has been positioning itself to participate in and capitalise on opportunities generated by these dynamic trends in numerous ways.

As at 31st December 2023, Adia’s 20-year and 30-year annualised rates of return, on a point-to-point basis, were respectively 6.4 per cent and 6.8 per cent, compared to 7.1 per cent and 7.0 per cent in 2022.



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