PIF Asset Management Forum Concludes Second Edition At FII8, Highlighting Future Of Saudi Capital Markets

The Public Investment Fund (PIF) recently wrapped up the second edition of its Asset Management Forum, held alongside the Future Investment Initiative 8th Edition (FII8) in Riyadh. This event gathered over 300 prominent figures from asset management firms, business sectors, government, and sovereign wealth funds. Discussions focused on Saudi capital markets' future, AI's role in asset management, MENA private markets, and strategies for emerging managers.

PIF and FII signed a non-binding memorandum of understanding (MoU) during the forum. This MoU aims to make the PIF Asset Management Forum a key component of the FII agenda both locally and globally. It also promotes "Crowdsourced Innovation," encouraging participation in FII events to gain diverse insights and ideas.

Abdulmajeed Alhagbani, Head of Securities Investments at PIF, stated: "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." He also highlighted efforts to attract global asset managers while developing local talent.

Since 2018, assets managed by institutions licensed by Saudi Arabia's Capital Markets Authority have doubled from SAR400 billion to SAR800 billion. PIF has collaborated with asset managers to offer unique products in the market. The CSOP Saudi Arabia ETF was listed on the Hong Kong Stock Exchange with a $1 billion size, marking it as the largest ETF investing in Saudi Arabia globally.

During FII8, PIF signed several MoUs with international financial entities. These include an agreement with Brookfield Asset Management to establish the Brookfield Middle East Partners platform. Additionally, partnerships were formed with State Street Saudi Arabia Financial Solutions and Mizuho Financial Group Inc., aiming to introduce new investment products.

The MoUs are non-binding initially but will transition into binding agreements after securing necessary internal and regulatory approvals. In 2023, PIF launched its Asset Managers Gate as a collaborative channel between PIF and fund managers. Within a year, over 90 asset managers registered, with 36 actively collaborating with PIF both locally and internationally.

Innovative Initiatives

The forum also celebrated the first cohort's graduation from PIF's Portfolio Management Development Program. This initiative is part of PIF's commitment to nurturing local talent in asset management. The program aims to enhance skills and prepare participants for roles within Saudi Arabia's evolving financial landscape.

In addition to Hong Kong listings, two feeder ETFs linked to the CSOP Saudi Arabia ETF were simultaneously launched on Shenzhen and Shanghai Stock Exchanges with a combined size of $169 million. Their total turnover exceeded $670 million on their debut day.

The forum underscored PIF’s dedication to fostering innovation within Saudi Arabia’s capital markets while building strategic alliances globally. By engaging with entrepreneurs and thought leaders through FII events, PIF seeks diverse perspectives that can drive growth and transformation in the sector.

With inputs from SPA