Abu Dhabi wealth fund’s returns surged in 2020 despite COVID

Dubai: Abu Dhabi Investment Authority (ADIA), the UAE’s biggest sovereign wealth fund achieved stronger rates of return despite the COVID-19 crisis impacting the global economy according to its 2020 annual review.

While the COVID crisis impacted all aspects of life across the world, ADIA said it remained focused on its mission.

Asset allocation

ADIA’s investments in private equity and Infrastructure have grown over a number of years and this has led to increases in the allocation bands for both asset classes:

“This trade-off is at the centre of ADIA’s investment strategy, and we were able to efficiently navigate market turmoil to position ourselves for the rebound,” Sheikh Hamed said

Areas of focus

Major areas of investment focus for the fund include technology, healthcare, renewable energy, and real estate sub-sectors such as logistics and data centres.

ADIA increased its exposure to renewable energy and through its infrastructure investments it now has an indirect interest in assets with a renewable capacity of more than 20 gigawatts.

On the equities side, its Indexed Fund Department introduced a climate change portfolio last year.