Adia has most holdings in US

Sheikh Ahmed bin Zayed Al Nahyan (SUPPLIED)

Abu Dhabi Investment Authority (Adia), considered the world's largest sovereign wealth fund, said the bulk of its holdings are in the US and Europe and it sees "significant, long-term investment potential" in both regions despite the global downturn.

Adia Managing Director Sheikh Ahmed bin Zayed Al Nahyan said: "Many substantial risks remain as the global economy struggles to recover. Among the threats are policies that could restrict cross-border investments by big overseas investors such as Adia."

He told German daily Handelsblatt that regionally the wealth fund has its largest allocation in the US, with 35 to 50 per cent, followed by Europe at up to 35 per cent and Asia at up to 20 per cent.

Adia raised investments in emerging markets where it sees greater growth opportunities.

"Emerging market economies are likely to outperform those of developed economies over the medium- to long term," said Sheikh Ahmed. "This has been reflected in our asset allocation."

The investment fund, which rarely discloses its strategy or size of its investments, said it has deployed between 15 to 25 per cent of assets in emerging markets. US Treasuries "will remain an important diversification tool", Al Nahyan said in the interview.

Adia is involved in key global investments ranging from real estate to finance and hospitality. The fund has a stake in companies including Citigroup, Hyatt Hotels and Saudi Arabia's Kingdom Holding.

Abu Dhabi's fund was managing an estimated $328 billion (Dh1.2 trillion) at the end of 2008, according to economists at the New York-based Council on Foreign Relations. Studies on Adia's assets range from between $300bn and $800bn.

 

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