Mubadala works through coronavirus and oil hit

Mubadala Investment Co., Abu Dhabi, is well-positioned to manage through the current markets situation despite being hit by a "double whammy" of the coronavirus crisis and collapse in energy prices.

"What happened as we entered 2020 was an incredible situation, a situation ... nobody could have probably planned for, prepared for or anticipated," said Khaldoon Khalifa al Mubarak, group CEO and managing director, in a video published Thursday on Mubadala's website.

Commenting on the sovereign wealth fund's 2019 annual review, Mr. Mubarak said Mubadala was hit by the "double whammy" of the coronavirus pandemic and "the correction that has happened in the oil and gas markets," with both occurring within a short period of time.

However, Mubadala's portfolio is diverse, the fund has a strong balance sheet and "a very strong liquid and cash position ... All of that, I think, positions us very well to handle this very extraordinary situation in the best way possible," Mr. Mubarak said. "The onus on us right now is to take the right decisions."

Assets grew 1.5% in 2019 to 853 billion UAE dirham ($232.2 billion), while total comprehensive income grew to 53 billion dirham, up from 12.5 billion dirham in 2018, the fund's latest annual review said.

Executives invested 68 billion dirham across asset classes, including credit, technology, life sciences, health care, renewables, transportation and agribusiness. The fund invested 70.1 billion dirham in 2018.

As of Dec. 31, the asset allocation was 43% in direct and indirect private equity investments, 21% in public markets, 14% in cash, 11% in real estate and infrastructure and the remainder was invested across other alternatives and credit. The asset allocation for 2018 was not available.

Mubadala Investment Co. was created in 2017 following the merger of two of the country's investment funds, the Mubadala Development Co. and the International Petroleum Investment Co. The Abu Dhabi Investment Council was restructured and merged with Mubadala in 2018.

"2019 was a truly remarkable year — it brought together a couple of years of hard work putting together Mubadala, IPIC, the ADIC — and it all came together in 2019 really in the most optimal way," Mr. Mubarak said in the video. "The performance of the entire organization ... I think was tremendous."