Abu Dhabi multi-billion fund unveils strategy for first time

ABU DHABI – Abu Dhabi Investment Authority, believed to be the world’s largest wealth fund, yesterday revealed for the first time the distribution of its assets, estimated at around US$500 billion.

ADIA, in its first-ever annual review, said it invests between 60 per cent and 85 per cent of its holdings in North America and Europe and between 25 per cent and 45 per cent in Asia and emerging markets.The report, which was issued as part of moves towards increased transparency, however, did not reveal the actual size of ADIA assets, which some reports put as high as US$800 billion.Between 46 per cent and 65 per cent of ADIA assets are held in developed equities, emerging market equities and, to a lesser extent, in small cap equities, it said.Ten to 20 per cent are invested in government bonds, five to ten per cent in hedge funds and managed funds, and up to ten per cent is held in cash, the report said.ADIA managing director Ahmed bin Zayed al-Nahayan said the report is in compliance with Generally Accepted Principles and Practices, also known as Santiago Principles, approved by 26 world sovereign wealth funds.’World equity markets, already down by more than 40 per cent in dollar terms (in 2008), fell a further 23 per cent to their lows in March 2009,’ Nahayan was quoted as saying in the ADIA report.He said that ‘a significant recovery in economic activity and substantial gains in world equity markets’ have taken place during the following months.’Even so, considerable uncertainty remains about the outlook for 2010. Most pressing is the sustainability of the economic recovery,’ Nahayan said.Established in 1976 to manage the oil wealth of the Abu Dhabi emirate, ADIA’s rate of return averaged an annual eight percent over the past 30 years and 6,5 per cent per annum during the past 20 years, the report said.The United Nations Conference on Trade and Development last year said ADIA was severely impacted by the global financial crisis, shedding US$183 billion of its assets in 2008 alone.The UN report estimated the value of ADIA assets at US$329 billion at the end of 2008, but as oil prices recovered and investments worldwide regained value, the fund’s assets are also expected to have gained last year.ADIA is run by a multi-national team of 1 200 people, just under one-third of whom are Emiratis, the report said. – Nampa-AFP

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.

The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.