PIF’s Asset Management Forum concludes second edition at FII8

PIF today concluded the second edition of the PIF Asset Management Forum, which took place on the sidelines of the Future Investment Initiative 8th Edition (FII8) in Riyadh. The forum hosted over 300 high-level representatives of asset management entities, business leaders, government figures and representatives of sovereign wealth funds. 

The 2024 forum explored the future of Saudi capital markets, the role of AI and digital transformation in the asset management industry, unlocking and navigating MENA private markets, and developing strategies for emerging asset managers in the Saudi capital markets.

PIF and FII signed a non-binding memorandum of understanding (MoU) during the forum, under which the PIF’s Asset Management Forum will be introduced as one of the main pillars of the FII agenda both locally and internationally. 

The MoU also envisages the promotion of the “Crowdsourced Innovation”, whereby the PIF’s Asset Management Forum aims to actively participate in FII events and initiatives to access diverse perspectives and innovative ideas. FII aims to also facilitate introductions and opportunities for PIF’s Asset Management Forum to engage with entrepreneurs, thought leaders and innovators. 

Abdulmajeed Alhagbani, Head of Securities Investments at PIF, said: "Strong and dynamic capital markets are an integral part of financing Saudi Arabia’s ambitious economic growth plans. PIF is committed to driving innovation and diversifying the range of investment products and initiatives to reshape the capital market. PIF is also keen to contribute effectively in attracting global asset managers and developing the capabilities of emerging local asset managers. This year we are also celebrating the graduation of the first cohort of trainees from PIF’s Portfolio Management Development Program.”

Since 2018, the total assets under management held by capital market institutions licensed by Saudi Arabia’s Capital Markets Authority has risen from SAR 400 billion in 2018 to SAR 800 billion. PIF, in collaboration with asset managers, has been providing differentiated product offerings to the market.

The CSOP Saudi Arabia ETF was listed on the Stock Exchange of Hong Kong on November 29, 2023, with a listing size of $1 billion. It debuted as the first Saudi Arabia ETF listed in the Asia-Pacific region, and is the world’s largest ETF investing in Saudi Arabia and was also the largest IPO on the Hong Kong Stock Exchange in 2023. In addition, two feeder ETFs of the CSOP Saudi Arabia ETF were simultaneously listed on the Shenzhen Stock Exchange and Shanghai Stock Exchange on July 16, 2024, with a combined launch size of $169 million. The total combined turnover reached over $670 million on listing day.

FII8 saw PIF sign a series of MoUs with a number of international financial institutions. This included an MoU with Brookfield Asset Management to launch the Brookfield Middle East Partners (BMEP) platform. In addition, PIF has signed MoUs with both State Street Saudi Arabia Financial Solutions and with Mizuho Financial Group Inc. to collaborate in launching new investment products. The MoUs are non-binding and entering into binding agreements will be subject to obtaining all necessary internal approvals as well as customary regulatory approvals.   

In 2023, PIF launched its Asset Managers Gate to serve as a channel for cooperation between PIF and fund managers. A year since its launch there are more than 90 registered asset managers, 36 of whom are actively working with PIF, both locally and globally.