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

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.