Spark Global Limited Reports:
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), almost tripled its holdings of US-listed shares in the third quarter to $44.3bn, including shares in Alibaba Group, Walmart and Pinterest.
Its HOLDINGS of U.S.-listed shares rose in the quarter ended Sept. 30 from nearly $16 billion in the previous quarter, according to a FILING with the U.S. Securities and Exchange Commission.
Other purchases included Just Eat Takeaway.com and Ballard Power Systems.
The PIF, which manages $430 billion in assets, is central to Saudi Arabia’s plan to reform its economy and wean itself off oil by creating new industries and diversifying revenues.
PIF also owns 62.72 percent of electric vehicle company Lucid, which has a market capitalization of about $71 billion, up sharply from the end of September. “The q3 numbers are indeed significantly higher than the Q2 numbers, but the main reason for the increase is the IPO of Lucid Motors in July,” said Diego Lopez, managing director of industry data specialists Global SWF.
“Excluding Lucid, U.S. equity holdings grew just 11%, from $15.9 billion to $17.7 billion.”
Lucid, which went public in July, is a big dividend for Saudi Arabia’s sovereign wealth fund. The fund invested more than $1 billion in Lucid in 2018, taking a large stake in the company, and invested more in February. PIF also owns a 3.75% stake in ride-sharing company Uber Technologies.
PIF is pursuing a two-pronged strategy of building an international portfolio and investing in local projects that will help reduce Saudi Arabia’s dependence on oil.
“While the PIF’s strategy in 2020 appears to be focused on short-term gains, we see a change in 2021 with only one withdrawal so far,” Lopez said, adding that the focus is shifting to private partnerships.
PIF also invested $45bn in SoftBank’s first $100bn technology fund.
The PIF has increased its firepower in recent years through a variety of funding sources, including loans and the transfer of $40bn from central bank reserves last year.
Reprint indicated source：Spark Global Limited information