Abu Dhabi Investment Authority's assets under management cross $1 trillion mark

A. SREENIVASA REDDY (ABU DHABI)

The Abu Dhabi Investment Authority (ADIA), the sovereign wealth fund of the Government of Abu Dhabi, has exceeded the $1 trillion mark in assets under management (AUM), according to the latest data from the Sovereign Wealth Fund Institute (SWFI).

ADIA, estimated by SWFI to have $1.057 trillion in AUM, retains its position as the fourth-largest sovereign wealth fund globally. The top position is held by Norway's Government Pension Fund Global, with $1.796 trillion in AUM, followed by China Investment Corporation ($1.332 trillion in AUM) and SAFE Investment Company of China ($1.090 trillion in AUM).

Global SWF had previously estimated ADIA’s AUM at approximately $892 billion at the end of 2022 and $940 billion at the end of 2023, as reported in media sources from that period.

The Kuwait Investment Authority and the Public Investment Fund of Saudi Arabia are also nearing the $1 trillion mark, with $980 billion and $925 billion in AUM, respectively. Another notable Gulf sovereign wealth fund, the Qatar Investment Authority, has $526 billion in AUM, securing its place among the top 10 sovereign wealth funds globally.

In addition to ADIA, Abu Dhabi is home to other prominent funds such as Mubadala Investment Company, with $330 billion in AUM, and Abu Dhabi Developmental Holding Company (ADQ), which manages $249 billion in assets, according to data from Global SWF.

Meanwhile, the Investment Corporation of Dubai (ICD) and the Emirates Investment Authority (EIA)—the UAE's federal-level sovereign fund—report AUM of $360 billion and $91 billion, respectively.

Established in 1976, ADIA is a globally diversified investment institution that manages funds on behalf of the Government of Abu Dhabi, focusing on long-term value creation. Its diversified portfolio spans geographies, asset classes, and asset types, enabling consistent, long-term returns throughout market cycles, according to the fund's official profile.

ADIA invests in developed equities, emerging market equities, small-cap equities, government bonds, real estate, private equity, and infrastructure.

Although ADIA does not officially disclose figures on its assets, its 2023 asset strategy review highlighted some notable shifts. For instance, the fund increased its allocation to private equity, with the proportion rising to 12%–17% of the total portfolio in 2023, compared to 10%–15% in 2022.

The review also revealed that ADIA has prioritised total returns at the portfolio level, moving away from a traditional approach emphasising individual asset classes outperforming benchmarks. At a portfolio level, the share of assets managed internally grew from 55% in 2022 to 64% in 2023.

As of December 31, 2023, ADIA's 20-year and 30-year annualised rates of return, on a point-to-point basis, were 6.4% and 6.8%, respectively, compared to 7.1% and 7.0% in 2022, the review stated.