Saturday, May 18, 2024

Hamed bin Zayed: Abu Dhabi Investments has increased its capacity to adapt to changing market conditions


The Abu Dhabi Investment Authority has released its annual report for 2022, which includes its achievements and actions over the past year.

Sheikh Hamad bin Saeed Al Nahyan, Managing Director of Abu Dhabi Investment Authority, said that in recent years the company has made great efforts to increase its flexibility in investment and its ability to adapt to changing market conditions.

In his speech at the introduction of the report, His Highness added: “Abu Dhabi Investment Authority succeeded in capitalizing on rapid portfolio recovery opportunities across asset classes, confirming the value of its diversified portfolio as evidenced by equities and bonds during the year. An extraordinary connection.”

His Highness explained that the Abu Dhabi Investment Authority continues to explore strategies based on data and metrics at the level of the total portfolio and asset classes, and the agency’s annualized rates of return over 20 years and 30 years have reached 7.1% and 7% respectively. , through December 31, 2022, compared to 7.3% and 7.3% in 2021.

In 2023, he pointed out, financial markets could be vulnerable to a group of external influences, including the trajectory of global growth and inflation, the potential negative effects of tightening monetary policy on financial institutions, and ongoing geopolitical risks.

His Highness said: “It is estimated that more than three trillion dollars are required annually to support global economic development aspirations and provide basic services to citizens, and this includes projects to accelerate the energy transition.”

He noted that the Abu Dhabi Investment Authority is fully aware of the profound impact of climate change on the investment landscape and the opportunities it presents, noting that the Authority participated in organizing a summit of sovereign wealth funds, asset managers and leaders last year. Abu Dhabi-based One Planet Investment Funds brought together global institutional investors who held assets. More than $37 trillion.

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He pointed out that the summit witnessed the establishment of “OPSWF”, a permanent platform to enhance cooperation among global institutional investors on issues related to energy transition. United Arab Emirates, and is evident through the role of the state as a host. For the United Nations Climate Change Conference “COP28”.

“We are excited about the opportunities that await us and our ability to continue our work over time,” he said.

According to the annual report, the Abu Dhabi Investment Authority has succeeded in significantly improving its operations in recent years, increasing its ability to achieve better performance in a dynamic and changing investment landscape.

The report indicated that structural changes at the Abu Dhabi Investment Authority helped improve the agency’s focus and mobilize resources more effectively to capture fast-moving opportunities and achieve optimal returns at the overall portfolio level.

He explained that strengthening the investment and support activities at the Abu Dhabi Investment Authority is one of its key components through the establishment of two integrated and interconnected departments, the Capital Assets Department (CPD) and the Central Investment Services Department (CISD). Both departments were created in 2021 and they have further developed their business models in 2022, making significant progress in managing Abu Dhabi Investment Authority’s overall portfolio and helping investment departments implement their strategies.

In 2022, the Abu Dhabi Investment Authority further refined its investment activities by splitting the real estate and infrastructure investment groups into independent sectors, the report added. He stressed that the Abu Dhabi Investment Authority, as a long-term investor, places great emphasis on identifying the fundamental characteristics of the current or future investment landscape. Developing methods based on quantitative data to help benefit from fundamental uncertainty. Who knows the investment markets. These initiatives and decisions enabled the Abu Dhabi Investment Authority to take major steps to improve its operational processes and operations to support its core objectives.

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• “Instrument” capitalized on opportunities for rapid portfolio recovery across asset classes.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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