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An evolving strategy for a complex world
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An evolving strategy for a complex world

Building a diversified, long-term focused portfolio, with the flexibility to capture new and emerging opportunities.

Philosophy

Our Investment Principles

At ADIA, we believe that asset allocation is the primary driver of long-term outperformance.

We take a structured yet flexible approach that balances this long-term focus with an ability to respond quickly, if appropriate, when new opportunities arise.

We view information and data as essential raw commodities, which we must filter and distill to develop actionable insights that lead to enhanced returns.

We believe in empowering our investment professionals with discretion to deploy their allocated capital and risk in areas most likely to outperform.

Asset Allocation

Building our Portfolio

Investment strategy at ADIA begins by defining our risk appetite, calibrated through a blend of publicly traded securities known as the Reference Portfolio.

We then seek to add value through our Strategic Asset Allocation process, diversifying across more than two dozen asset classes and sub-categories, based on ADIA’s long‑term view of the world. This results in higher expected returns than the Reference Portfolio for a similar level of risk.

We continuously streamline ADIA’s investment strategies to ensure optimal performance, while exploring opportunities to expand our investable universe.

Portfolio by asset class

Long term strategy portfolio

Minimum
Maximum
The below denotes long-term strategy portfolio ranges within which allocations can fluctuate; hence they do not total 100%.
*Financial Alternatives comprises hedge funds and managed futures.
  • Developed Equities

    Min
    32%
    Max
    42%
  • Emerging Market Equities

    Min
    7%
    Max
    15%
  • Small Cap Equities

    Min
    1%
    Max
    5%
  • Government Bonds

    Min
    7%
    Max
    15%
  • Credit

    Min
    2%
    Max
    7%
  • *Financial Alternatives

    Min
    5%
    Max
    10%
  • Real Estate

    Min
    5%
    Max
    10%
  • Private Equity

    Min
    7%
    Max
    12%
  • Infrastructure

    Min
    2%
    Max
    7%
  • Cash

    Min
    0%
    Max
    10%

Process

Implementing our Strategy

ADIA’s Investment Committee and, ultimately, the Managing Director, are responsible for reviewing and approving the Strategic Asset Allocation.

Investment departments are then responsible for investing capital allocated to them, in line with their mandates, benchmarks and guidelines.

We empower ADIA’s in-house investment professionals to take a global view of opportunities, both within and across their asset classes. We also encourage them to be tactical in responding to attractive new opportunities or trends.

We view investment strategy as a collaborative process, and tie it closely to the ADIA-Wide Planning process. This promotes debate around our key assumptions and strategic priorities, and aligns the organisation with ADIA's objectives.

Risk

Managing our Risk

At ADIA, we believe that managing risk is a core responsibility of all employees.

ADIA’s risk management framework ensures that management has clear visibility of all sources of risk, both from a top-down and bottom-up perspective.

This involves analysing aggregate portfolio risk as well as investment risk by asset class, country, counterparty and other dimensions.

In addition, ADIA’s investment departments each have their own risk framework. This complements the ADIA-wide framework and provides them with the flexibility to identify risks that are unique or specific to their asset class.

We also actively monitor operational and compliance risks, and conduct operational due diligence and business continuity activities.

Through a process of ongoing education, we seek to ensure that ADIA continues to build on and enhance its culture of risk awareness.

We expect our people to demonstrate the highest standards of ethics and integrity and administer this through ADIA’s Code of Conduct and other policies.

ADIA
Abu Dhabi Investment Authority
211 Corniche, PO Box 3600
Abu Dhabi, United Arab Emirates

Phone +971 2 415 0000
Fax +971 2 415 1000

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