Saudi PIF nearly triples U.S. stock holdings; adds Walmart, Pinterest (updated)

Caliber Imaging & Diagnostics

15/11/2021 21:03

(Adds analyst quote)
    By Saeed Azhar
    DUBAI, Nov 15 (Reuters) - The Public Investment Fund (PIF),
Saudi Arabia's sovereign wealth fund, nearly tripled its
holdings of U.S.-listed stocks to $43.45 billion in the third
quarter, adding shares of Alibaba Group  BABA.N , Walmart
 WMT.N  and Pinterest  PINS.N .
    Its U.S.-listed stock holdings in the quarter ended Sept. 30
increased from nearly $16 billion in the prior quarter,
according to a U.S. Securities and Exchange Commission filing.
    Other stocks it bought included Just Eat Takeaway.com
 TKWY.AS  and Ballard Power Systems  BLDP.TO .  urn:newsml:reuters.com:*:nFWN2S61WW
    The PIF, which manages $430 billion in assets, is at the
centre of Saudi Arabia's plans to transform the economy by
creating new sectors and diversifying revenues away from oil. 
    The PIF also owns a 62.72% stake in electric car company
Lucid  LCID.O , which has a market value of about $71 billion, a
significant boost in value from the end of September.
    "The Q3 figure is indeed significantly larger than Q2, but
most of the increase is due to Lucid Motors' IPO in July," said
Diego Lopez, managing director at Global SWF, an industry data
specialist.
    "If you isolate the effect of Lucid, the U.S. equity
holdings increased only 11%, from $15.9 billion to $17.7
billon."
    Lucid’s listing in July was a huge dividend for the Saudi
sovereign wealth fund, which invested more than $1 billion in
the company in 2018 for a substantial stake and invested more in
February.  The PIF also owns a 3.75% stake in ride-sharing
company Uber Technologies  UBER.N .
    The PIF is pursuing a two-pronged strategy, building an
international portfolio of investments while also investing
locally in projects that will help reduce Saudi Arabia’s
reliance on oil.
    "While PIF's strategy in 2020 seemed to be focused on
short-term gains, we’ve seen a change in 2021, with only one
divestment so far," Lopez said, adding that the focus is moving
towards private partnerships.
    PIF has also invested $45 billion in Softbank's inaugural
$100 billion technology fund.
    The PIF has boosted its firepower from several funding
sources in recent years, including loans and a $40 billion
transfer from central bank reserves last year.

 (Reporting by Saeed Azhar; Editing by Richard Chang, Mark
Potter and Hugh Lawson)
 ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters
Messaging: saeed.azhar.reuters.com@reuters.net))