{"id":83111,"date":"2024-01-04T00:00:00","date_gmt":"2024-01-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/01\/04\/pif-sits-atop-the-swf-league-table-for-2023-with-fresh-investments-of-usd-31-6-bn\/"},"modified":"2024-01-04T00:00:00","modified_gmt":"2024-01-04T00:00:00","slug":"pif-sits-atop-the-swf-league-table-for-2023-with-fresh-investments-of-usd-31-6-bn","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/01\/04\/pif-sits-atop-the-swf-league-table-for-2023-with-fresh-investments-of-usd-31-6-bn\/","title":{"rendered":"PIF sits atop the SWF league table for 2023, with fresh investments of USD 31.6 bn"},"content":{"rendered":"

PIF tops the<\/strong> list of SWFs globally thanks to a flurry of investments at home, abroad: <\/strong>The Public Investment Fund has ranked first in 2024 Global SWF report (pdf)<\/a> with an 33% y-o-y increase in investments in 2023 to USD 31.6 bn, wrapping up some 49 transactions and dethroning Singapore's sovereign wealth fund Government of Singapore Investment Corporation (GIC)<\/a>. This is the first time in five years that GIC loses its top rank on the list, moving down to the second place. <\/p>\n

The methodology:<\/strong> Global SWF tracks 653 state-owned investors, including sovereign wealth funds (SWFs), public pension funds, and central banks, which jointly manage USD 49.7 tn in assets.<\/p>\n

Here\u2019s everything you need to know:<\/strong><\/p>\n

PIF flexed the most muscle in 2023: <\/strong>Last year, the fund acquired US gaming company Scopely<\/strong> for USD 4.9 bn for, via subsidiary Savvy Games Groups. It took over Standard Chartered\u2019s aircraft leasing division<\/strong> in a USD 3.6 bn purchase and SABIC\u2019s steel unit Hadeed<\/strong> for USD 3.3 bn. This is in addition to transactions involving Nintendo<\/strong> in Japan, Vale<\/strong> Basic Materials in Brazil, Heathrow<\/strong> airport and Rocco Forte Hotels<\/strong> in the UK, among others.<\/p>\n

Extreme diversification: <\/strong>\u201cThe variety of [transactions] shows the unparalleled bandwidth and reach of PIF and its subsidiaries, which are forming a wide net to capture any value-add for Saudi Vision 2030,\u201d said Global SWF Managing Director Diego Lopez.<\/p>\n

A victory lap for PIF\u2019s co-investors:<\/strong> The fund has established strategic joint ventures in the mining, automotive, tire and steel sectors with Ma\u2019aden<\/a>, Pirelli<\/a>, Hyundai<\/a>, Baosteel<\/a> and Aramco.<\/p>\n

The value of the fund\u2019s listed US equities grew 18% on an annual basis: <\/strong>While the fund didn\u2019t make any major changes to its positions, the rise came on the back of an increase in the value of existing stocks. Lucid Motors<\/a> continues to be the fund\u2019s largest public holding with a 63% stake.<\/p>\n

A penchant for EVs? <\/strong>PIF directly invested in EV manufacturing and the entire automotive value chain in 2023. It began its affair with automaker Lucid<\/a> back in 2018 when it pumped USD 1 bn in the Tesla rival, in addition to launching its own EV maker Ceer<\/a> in a JV with Taiwan\u2019s Foxconn<\/a>. <\/p>\n

About 42% of the fund\u2019s total investments where in Saudi Arabia<\/strong> as PIF balances a mandate to create wealth abroad while deploying capital at home to drive the transformation of the economy. <\/p>\n

Looking into its crystal ball<\/strong>, Global SWF thinks:<\/p>\n