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Saudi Sovereign Wealth Fund Closes Out October With Flurry of Deals

The Public Investment Fund signed MOUs with five Japanese banks worth $51 billion, among other deals.
By Michael Katz



Saudi Arabia’s $764 billion Public Investment Fund closed October with multiple deals, including memorandums of understanding with five Japanese financial institutions, the Hong Kong Monetary Authority and Brookfield Asset Management.

The Japanese memorandums of understanding include deals with Mizuho Bank, Sumitomo Mitsui Financial Group, MUFG Bank, Japan Bank for International Cooperation and Nippon Export and Investment Insurance. The sovereign wealth fund and Mizuho intend to launch an exchange-traded fund in Japan that invests in the Saudi Arabian equity market.

“The Saudi financial market has undergone a significant transformation and experienced rapid growth,” Mizuho said in a release. “The ETF would provide various investors with access to one of the fastest-growing markets in the world.”

The deal with Sumitomo Mitsui Financial Group would focus on “expanding investment opportunities, financing large-scale projects, and facilitating economic cooperation between Japanese companies and PIF,” according to the bank, which added that potential investments include the financing, capital markets, infrastructure, renewable energy and technology sectors.

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The fund’s MOU with MUFG Bank is intended to focus on infrastructure and project financing investments. The deal would also include helping the PIF find investment opportunities in Japan to support Saudi Vision 2030, a Saudi government program that aims to increase diversification “economically, socially, and culturally.”

Under the MOU with the Japan Bank for International Cooperation, the two aim to promote the PIF and Japanese companies’ joint projects in Saudi Arabia and other countries regarding “decarbonization, digital transformation, and smart city development.”

Details of the PIF’s MoU with Nippon Export and Investment Insurance were not readily available. 

The sovereign wealth fund also signed a non-binding deal with Brookfield Asset Management for the PIF to take on the role of strategic anchor investor for Brookfield Middle East Partners. BMEP is a new private fund that aims to create a private equity vehicle for investments in Saudi Arabia and the surrounding area. 

The private fund, which has a target size of $2 billion, intends to seek out buyouts, structured solutions and other investment opportunities among the industrials, business and consumer services, technology, and health care sectors. By the terms of the deal, at least 50% of the capital would be allocated to investments in Saudi Arabia and to companies looking to expand in the country.

The PIF also signed an MOU with the Hong Kong Monetary Authority to jointly anchor a new investment fund with a target size of $1 billion. Under the proposed deal, the PIF would seek out investments in manufacturing, renewables, fintech and health care. It would also promote foreign direct investments via Hong Kong to provide a platform for companies to have access to investments in Saudi Arabia.

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Home > News > Newsmakers > Northern Trust Asset Management Names Peter Wilke Head of Tactical Asset Allocation
Newsmakers

Northern Trust Asset Management Names Peter Wilke Head of Tactical Asset Allocation

Wilke takes on the newly created role after almost 10 years at Wellington Management.
By Michael Katz

Northern Trust Asset Management has named Peter Wilke to the newly created position of head of tactical asset allocation. He started at the firm at the beginning of November. 

Wilke joins the $1.3 trillion asset manager from Wellington Management Co., where he worked for nearly 10 years and was most recently managing director and portfolio manager. In that role, he was responsible for developing and managing multi-asset portfolios for institutional and financial intermediary investors. He was also head of Wellington’s global tactical asset allocation research team. 

Prior to joining Wellington Management, Wilke worked for BlackRock for almost 10 years, rising to portfolio manager and becoming a member of the asset management giant’s multi-asset portfolio strategies team. Before BlackRock, Wilke was an investment analyst at Deutsche Bank. 

According to the announcement, Wilke will head up a team of analysts conducting the macroeconomic research that influences Northern Trust’s investment views on market-moving factors, such as growth, inflation and economic policy. At NTAM, Wilke will lead the tactical asset allocation research team and report to Anwiti Bahuguna, NTAM’s CIO of global asset allocation. 

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“NTAM is strengthening investment capabilities and growing an even more robust process for economic research and analysis,” Bahuguna said in a release. “Peter’s multi-asset expertise will play a pivotal role in developing innovative investment strategies.” 

Northern Trust’s Global Tactical Asset Allocation Fund posted a total return of 6.23% for the third quarter that ended September 30, compared with 6.05% for the fund’s benchmark, the Asset Allocation Blend Index. According to the company, the fund outperformed during the quarter, as benefits from tactical positioning outweighed “modest headwinds” from product fulfillment.  

The fund has returned 10.45% year-to-date, below its benchmark’s return of 12.82% during the same period. Over the past three, five and 10 years, the fund has posted annualized returns of 3.55%, 5.89% and 5.28%, respectively, short of its benchmark’s returns by 82, 169 and 126 basis points, respectively, during the same periods.  

Related Stories: 

Chris Roth Named Northern Trust Asset Management’s CIO of Global Fixed Income 

Northern Trust Asset Management adds Veteran Fed Economist to Fixed Income Division 

Shundrawn Thomas to Leave Northern Trust Asset Management 

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