Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) has suffered a $11 billion loss in 2022, in contrast to the $19 billion profit it generated in 2021, according to a media report.
The reported loss can be attributed to the decline in global markets, with the owner’s share decreasing from SAR81.8 billion to SAR36.6 billion ($9.8 billion) in 2022, global newswire Bloomberg said in a report.
Despite the loss, the PIF’s total assets actually increased from $676 billion to approximately $778 billion in 2022.
The report states that in 2021, the PIF achieved a 25% return, in line with the performance of investors in the S&P 500 Index during that year when global markets rallied.
However, the PIF did not disclose the corresponding amount in its financial statements for 2022, which was a year when the S&P 500 Index experienced a decline of nearly 20%. It is important to note that the index has seen a rise of approximately 15% so far this year.
Since its transformation into a sovereign fund in 2016, the PIF has engaged in a global investment spree. In 2022, the fund established the Sports Investment Company, a wholly owned subsidiary aimed at investing in domestic and international sports.
Furthermore, this year, the Saudi government transferred an additional 4% stake in energy giant Aramco, valued at nearly $80 billion, to the PIF.
Additionally, the PIF manages a portfolio of US equities worth $35.6 billion, including holdings in companies like Lucid Group, Activision Blizzard, and Uber Technologies, as disclosed in a regulatory filing for the first quarter.
In support of sustainable initiatives, the PIF successfully raised $5.5 billion through a three-part green bond sale earlier this year.