Institutional Investors

Abu Dhabi develops alternatives via seeding

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The Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds with estimated assets of over $630 billion, has seeded a number of early-stage commodity trading advisors as it pushes ahead with its alternatives investing programme.

The fund, whose total alternatives allocation has a strategic target of between 5% and 10% of assets, has funded several early-stage or emerging managed-futures managers, with a view to eventually migrating them across to the main managed funds portfolio if they meet performance expectations.

The new managers will sit within a small portfolio launched in 2009 whose purpose is