Abu Dhabi wealth fund’s returns surged in 2020 despite COVID
ADIA to focus on tech, climate change in post-COVID strategy
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.
Throughout the crisis, ADIA remained focused on its mission of prudently managing capital on behalf of Abu Dhabi. To do so, it was necessary for ADIA to react on several fronts.Sheikh Hamed bin Zayed al-Nahyan, Managing Director of ADIA
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
ADIA is considering the potential impact of climate change on portfolios, including the formal assessment of climate change factors for all new investments. The Fund said in its annual review that it has committed capital to a number of opportunities set to benefit from the move to a lower-carbon economy.
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.
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