The Abu Dhabi Investment Authority (ADIA), one of the world's largest sovereign wealth funds, said it delivered strong returns in 2021, buoyed by a bumper year for stocks.
ADIA, estimated to manage some $708 billion in assets, also said in an annual report that it restructured several aspects of the organisation, combining units and centralising processes.
Its 20-year and 30-year annualised rates of return - on a point-to-point basis - were both 7.3% at the end of last year, up from a 20-year rate of 6% and 30-year rate of 7.2% in 2020. "ADIA sought out opportunities in regions and sub-regions with high potential over the long term and continued to build out its direct exposure to private markets," the Abu Dhabi-based fund said.
"It also benefited from positioning equity portfolios to capitalise on emerging trends, including opportunities arising from differing government responses to the pandemic."
ADIA's long-term portfolio strategy sets exposure to North America at a range of 45% to 60%, to Europe at 15% to 30% and emerging markets at 10% to 20%, it said. By asset class, 32% to 42% was deployed in developed equities. In terms of restructuring, the fund established a Core Portfolio Department, which it said allows "more efficient, flexible trading and rebalancing".
It set up a Central Investment Services Department to create "a single point of visibility" for the total portfolio and efficient investment support activities across the organisation.
ADIA said it also boosted front-line managers' autonomy, part of a wider push to simplify internal systems and improve ability to act quickly on fast-moving opportunities. As a result, the fund had an overall reduction in headcount, though it did not disclose by how much. The report said ADIA has 1,520 employees.
