Abu Dhabi Investment Authority (ADIA)
What Is the Abu Dhabi Investment Authority?
The Abu Dhabi Investment Authority is a government-owned investment organization that deals with the sovereign wealth fund for Abu Dhabi, United Arab Emirates.
As per the Sovereign Wealth Fund Institute's rankings, the ADIA sovereign wealth fund positioned as the fourth-largest in the world in 2021 with $649.2 billion in assets. It is one of the world's largest institutional investors. Norway's sovereign wealth fund is the largest in the world and with more than $1.34 trillion in assets, and the China Investment Corporation is second with $1.22 trillion.
Figuring out the Abu Dhabi Investment Authority
The gigantic amount of wealth managed by the ADIA is obtained fundamentally from Abu Dhabi's large oil reserves. The ADIA likes to stay cryptic, so not a great deal is had some significant awareness of its investment methodology or portfolio of holdings.
In U.S. dollars, the annualized rates of return for the ADIA portfolio win 2019 and 2020 were - 2% and +21%, individually, with execution estimated in view of hidden reviewed financial data and determined on a time-weighted basis.
ADIA's mission is to "support the long-term thriving of Abu Dhabi by judiciously developing capital through a trained investment process and committed individuals who mirror ADIA's social values." ADIA deals with a global investment portfolio that is diversified across multiple dozen asset classes and sub-categories.
About the ADIA Fund
The fund has 1,700 employees addressing in excess of 65 ethnicities. "As a long-term investor, ADIA puts great accentuation on breaking down market trends and generating experiences to make considered, conscious, and forward-looking choices," the fund stated.
The ADIA doesn't spread the word about its specific investments for the public. Concerning investment strategy, it has this to say: "Investment strategy at ADIA starts with a plainly defined hunger for risk. This has been adjusted through a mix of publicly traded securities, known as the Reference Portfolio, developed to characterize the ideal amount of market risk that ought to be accepted over the long term...maintaining and intermittently inspecting ADIA's Strategic Asset Allocation (SAA) across multiple dozen asset classes and sub-categories."
The broad asset categories it puts resources into include: indexed funds, internal equities, outside equities, fixed Income and treasury, alternative investments, real estate and infrastructure, and private equities.
The fund deals with some 45% of its assets, with around 55% "managed remotely in regions including equities, fixed income, money markets, alternative investment, real estate, and infrastructure, and private equities. We draw in managers across the risk range, from record repeating to effectively managed orders, and normally tailor every investment to our specific requirements and internal rules."
- The ADIA positioned as the fourth-largest sovereign wealth fund in the world in 2021 with just under $650 billion in assets.
- The Abu Dhabi Investment Authority (ADIA) is a government-owned investment organization that deals with the sovereign wealth fund for Abu Dhabi, United Arab Emirates.
- The ADIA doesn't like to uncover its specific holdings, so little is had some significant awareness of its investment methodology or portfolio.