The Abu Dhabi Investment Authority (ADIA) has taken back a tenth of its portfolio from external managers.
The sovereign wealth fund, which is thought to be among the largest in the world, says in its 2014 report it has reduced the proportion of its assets managed by external asset managers from 75% to 65%.
Hamed bin Zayed Al Nahyan, managing director of ADIA and a member of Abu Dhabi’s ruling family, says the decline reflects efforts “to strengthen the organisation’s in-house investment and analytical expertise”.
In a move that underlines the fund’s insourcing strategy, ADIA also said this week it has appointed John Pandtle in the newly created role of head of the US in its internal equities department.
ADIA does not reveal its total asset base nor its annual performance, however its average annual return for the 20 years ending on December 31, 2014, was 7.4%, a 0.2-point improvement on the same measure made the previous year.
The fund says the proportion of its assets held in index-replicating strategies stayed unchanged at 55%.
Founded in 1976, ADIA is the main sovereign wealth fund of the emirate of Abu Dhabi and is charged with investing government funds, which mainly come from oil exports.
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