Abu Dhabi Investment Authority has joined the elite $1 trillion club, according to new rankings.
The emirate’s sovereign wealth fund has total assets to the tune of $1.058 trillion, the Sovereign Wealth Fund Institute said.
Only three other sovereign wealth funds have total assets above $1 trillion. Leading the list is Norway Government Pension Fund Global with $1.8 trillion in assets, followed by China Investment Corporation ($1.3 trillion), and China’s SAFE Investment Company ($1.1 trillion).
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Kuwait Investment Company ($0.98 trillion), Saudi Arabia’s Public Investment Company ($0.95 trillion) and Qatar Investment Authority ($0.53 trillion) are the other GCC-based sovereign wealth funds in the top 10.
ADIA’s investment strategy
ADIA has a well-diversified investment strategy with global exposure across all investment classes.
Its investments include developed equities, emerging market equities, small cap equities, government bonds credit, real estate, infrastructure, among others.
In 2023, ADIA’s allocation to private equity grew to 12 -17 percent of ADIA’s total portfolio, in comparison with 10-15 percent in 2022.
At a total portfolio level, the proportion of ADIA’s assets managed internally has grown from 55 percent in 2022 to 64 percent in 2023, it said in a report recently.
This increase can be mostly attributed to changes in how ADIA manages parts of its indexed equity exposures through the core portfolio department, which has substantially expanded its internal capabilities in recent years.
As on December 31, 2023, ADIA’s 20-year and 30-year annualized rates of return, on a point-to-point basis, were respectively 6.4 percent and 6.8 percent, compared to 7.1 percent and 7 percent in 2022.
