Sovereign wealth fund #ADIA optimistic on equities, private credit after turbulent 2022 | Reuters

Sovereign wealth fund ADIA optimistic on equities, private credit after turbulent 2022 | Reuters

Sovereign wealth fund Abu Dhabi Investment Authority (ADIA) said it was optimistic on public equities for 2023 after last year's market rout, driven by high inflation and rising interest rates, weighed on stocks' valuations, making them more attractive.

The fund was also looking at opportunities in the private credit market, as banks become more cautious on lending due to rising financing costs, it said in its 2022 annual review.

ADIA, which manages the surpluses the Gulf emirate earns from oil exports, does not disclose the value of its assets but Global SWF, an industry specialist, estimates them at $993 billion.

As of the end of last year ADIA achieved 20-year and 30-year annualised rates of return of 7.1% and 7.0% respectively, compared with 7.3% and 7.3% in 2021, it said in its report, published on Tuesday.

"Equities - both public and private - should continue to find support, especially if profitability remains resilient despite lingering tensions in supply chains and the availability of labour," Managing Director Hamed bin Zayed Al Nahyan said in the report.