Abu Dhabi Investment Authority, one of the world’s biggest sovereign wealth funds, said internal money managers allocated more assets to European and South African equities last year.
The fund generated annualized returns of 7.2 percent over the two decades through 2013, down from 7.6 percent a year earlier, ADIA said in its annual report published today.
The return over 30 years was 8.3 percent. The authority, which allocates 75 percent of its funds to external managers, doesn’t disclose the value of its assets.
Abu Dhabi, capital of the United Arab Emirates and home to about 6 percent of the world’s proven oil reserves, is seeking to diversify from crude exports with investments abroad.
The wealth fund has been building up in-house teams in areas such as real estate and private equity as it seeks greater control over investments and focuses more on emerging markets.
“Global economic growth will increasingly be sourced from emerging economies,” ADIA’s Managing Director Sheikh Hamed bin Zayed Al Nahyan wrote in the report.
“Despite short-term setbacks, emerging markets and particularly China, are likely to play a much greater role in this global growth cycle than ever before.”
ADIA said that it received approval from China’s market regulator to double its Chinese equities allocation to $1 billion under the Qualified Foreign Institutional Investor program.
Unchanged Investments
The 38-year-old fund’s investment portfolio remained unchanged in 2013 with developed-market equities at 32 percent to 42 percent of total allocations and emerging-nation stocks at 10 percent to 20 percent.
North America represents 35 percent to 50 percent of investments, Europe 20 percent to 35 percent, emerging markets 15 percent to 25 percent and developed Asian markets 10 percent to 20 percent.
ADIA said its real estate team, which manages 5 percent to 10 percent of its assets, was “broadening its scope toward opportunities” in Brazil and Mexico among other developing countries in the Americas. In Australia, the fund is investing in retail and hospitality.
“The build-out of the real estate team over recent years has positioned ADIA to be an active investor in the debt and equity space across a wide range of markets and property types,” it said.
The authority, which employs more than 1,500 people from 60 nationalities, also invests in small capitalization equities, fixed income, infrastructure, hedge funds and private equity.
bloomberg.com
The fund generated annualized returns of 7.2 percent over the two decades through 2013, down from 7.6 percent a year earlier, ADIA said in its annual report published today.
The return over 30 years was 8.3 percent. The authority, which allocates 75 percent of its funds to external managers, doesn’t disclose the value of its assets.
Abu Dhabi, capital of the United Arab Emirates and home to about 6 percent of the world’s proven oil reserves, is seeking to diversify from crude exports with investments abroad.
The wealth fund has been building up in-house teams in areas such as real estate and private equity as it seeks greater control over investments and focuses more on emerging markets.
“Global economic growth will increasingly be sourced from emerging economies,” ADIA’s Managing Director Sheikh Hamed bin Zayed Al Nahyan wrote in the report.
“Despite short-term setbacks, emerging markets and particularly China, are likely to play a much greater role in this global growth cycle than ever before.”
ADIA said that it received approval from China’s market regulator to double its Chinese equities allocation to $1 billion under the Qualified Foreign Institutional Investor program.
Unchanged Investments
The 38-year-old fund’s investment portfolio remained unchanged in 2013 with developed-market equities at 32 percent to 42 percent of total allocations and emerging-nation stocks at 10 percent to 20 percent.
North America represents 35 percent to 50 percent of investments, Europe 20 percent to 35 percent, emerging markets 15 percent to 25 percent and developed Asian markets 10 percent to 20 percent.
ADIA said its real estate team, which manages 5 percent to 10 percent of its assets, was “broadening its scope toward opportunities” in Brazil and Mexico among other developing countries in the Americas. In Australia, the fund is investing in retail and hospitality.
“The build-out of the real estate team over recent years has positioned ADIA to be an active investor in the debt and equity space across a wide range of markets and property types,” it said.
The authority, which employs more than 1,500 people from 60 nationalities, also invests in small capitalization equities, fixed income, infrastructure, hedge funds and private equity.
bloomberg.com
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