Emerging World Economies to Outperform, ADIA Tells Handelsblatt

Abu Dhabi Investment Authority, one of the worlds’ largest sovereign wealth funds, raised investments in emerging markets where it sees greater growth opportunities, the fund’s managing director told Handelsblatt.

“Emerging market economies are likely to outperform those of developed economies over the medium-to-long term,” Sheikh Ahmed Bin Zayed Al-Nahyan said in an interview with German newspaper Handelsblatt. “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 percent of assets to emerging markets. The U.S. remains ADIA’s biggest investment destination accounting for as much as 50 percent of investments. U.S. Treasuries “will remain an important diversification tool,” Al-Nahyan said in the interview released to media today.