Title: Public Investment Fund of Saudi Arabia
Headings: Public Investment Fund of Saudi Arabia
Public Investment Fund of Saudi Arabia
What Is the Public Investment Fund of Saudi Arabia?
Key Takeaways
Understanding the Public Investment Fund of Saudi Arabia
The PIF and Other Sovereign Wealth Funds

Content: 1
The PIF and Other Sovereign Wealth Funds
Many countries create sovereign wealth funds (SWFs) to diversify their revenue streams. For example, since the United Arab Emirates (UAE) primarily relies on oil exports for its wealth, its SWF consists of a range of other assets that help shield the nation from oil-related risk. SWFs have enormous economic power. In February 2021, the UAE's fund was worth nearly $580 billion, and Norway’s sovereign wealth fund, the largest in the world, exceeds $1.273 trillion. 3
Many sovereign wealth funds will look to asset management firms for support in managing their portfolios. These firms, such as Neuberger Berman, Morgan Stanley Investment Management, and Goldman Sachs Asset Management provide their clients (which include many high net worth and institutional investors, such as hedge funds, endowments, pensions, and family offices) more diversification and investing options than they would have on their own. These investment managers earn income by charging service fees or commissions to their clients. In some cases, managers charge set fees; in others, they charge a percentage of the total assets under management ( AUM ). For example, if a manager is taking care of an investment worth $6 million and charges a 2% commission fee, it owns $120,000 of that investment.