State Street Global Advisors announces PIF investment into new Saudi ETF

State Street Global Advisors (SSGA), the asset management business of State Street Corporation, today announced an investment of $200 million by PIF into the recently launched SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS exchange traded fund.

Global investors are increasingly looking at ways to access opportunities in Saudi Arabia, including the growing bond market, which has continued to mature due to economic transformation and infrastructure upgrades driven by Vision 2030.

The exchange traded fund (ETF) is the first Saudi Arabia fixed-income undertaking for collective investment in transferable securities (UCITS) ETF in Europe. It is listed on both the London Stock Exchange and the Deutsche Börse’s Xetra in Frankfurt. The ETF tracks the newly created J.P. Morgan Saudi Arabia Aggregate Index, providing investors with access to Saudi financial instruments, including liquid, dollar-denominated, SAR-denominated government and quasi-government Saudi bonds, including sukuk bonds.

The launch and listing of the SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF is another significant milestone in PIF’s role in enabling greater international access to Saudi Arabia’s diversified and dynamic market, driving cross-border opportunities and bringing foreign investment. PIF has already invested in ETFs listed in Hong Kong, Shanghai, Shenzhen and Tokyo.

Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said: “PIF continues to create opportunities, open gateways, and enable access to Saudi Arabia’s diverse and dynamic capital market. PIF’s investment into the first internationally listed fixed-income Saudi ETF further deepens the Saudi market, while attracting investors and strengthening cross-geography partnerships, increasing international investment in Saudi Arabia.”

Yie-Hsin Hung, Chief Executive Officer, State Street Global Advisors, said: “We are delighted to see such significant early-stage commitment from PIF into the SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF, a first of its kind in the industry. The creation of this fund sprung from our ambition to provide investors a compelling and innovative opportunity. State Street Global Advisors is honored to play a part in Saudi Arabia’s economic evolution.”

The ETF is available to investors in Austria, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden and the U.K. 

For more information on the ETF, visit, ssga.com/etfs