Abu Dhabi’s Minimum Asset Allocation to Europe Reduced

According to reports, the Abu Dhabi Investment Authority (ADIA) has reduced the minimum asset allocation to Europe. It has been affirmed that the figures for the same have come down top 20% from 25%.

This is the first reduction since it has started to publish the annual review four years back. The authority is now emphasizing on emerging markets. Published on Monday, the report has suggested that it has also decreased its minimum and maximum exposure to developed equities.

The overall size of portfolio of ADIA has not been revealed as of now. The 2011 Monitor Group estimate asserted that it is having $342bn in assets under management. ADIA has been positive on developing regions and expressed concerns on Europe since 2009 when it started shifting towards higher growth in the markets.

In the report, the Managing Director of ADIA Sheikh Hamed bin Zayed al-Nahyan said that many developed market economies are striving to exist as a result of the global financial crisis. But, he said that the emerging market economies are diverse and provide good opportunities to deploy capital.

“The positive economic fundamentals underpinning emerging markets also remain intact and should result in long-term outperformance against developed markets, although performance will also likely remain volatile, especially during major global setback”, asserted the ADIA report.