Abu Dhabi Investment Authority and Australian Retirement Trust are divided on increasing fund investments in 2026, highlighting contrasting strategies in a volatile market. ADIA's Drew Goldman stated funds are an important but not necessarily growing part of their portfolio, emphasizing control over fees and taxes, while ART committed A$3 billion (USD $1.95 billion) to real estate in the last six months, evenly split between direct investments and funds. Market access difficulties and a better signal-to-noise ratio for funds are driving ART's increased allocation.

ART's Mark Lee explained their shift towards funds, noting they now deploy capital more efficiently through GPs due to challenges accessing direct deals. ART's real estate program is A$19 billion, projected to double in five to six years, creating a balancing act between open-ended and closed-ended funds. ADIA, conversely, avoids global funds and open-ended structures, preferring geographically focused strategies for control.

The differing approaches underscore a strategic divergence: ADIA prioritizes control and thematic alignment, while ART leverages funds for idea incubation and market access, reflecting broader trends in real estate investment amid volatility.