Saudi pension fund says returns hit 14%

The investment arm of Saudi Arabia’s General Organization for Social Insurance, said it delivered returns of over 14 per cent last year, as markets globally rallied to new heights.

The disclosure is the first indication from Hassana, as the fund manager which oversees $250bn in assets is known, about the returns it generates. It also said that investment gains exceeded 12 per cent for the past three years, and 9 per cent for the past five years, according to a statement to the Saudi Press Agency.

The returns were due to its long-term portfolio allocation and market performance, chief executive officer Saad Al Fadhli said in the statement.

Global markets soared over the past year, despite worries about the coronavirus and shifts in monetary policy. The S&P 500 Index rose 27 per cent last year, while cryptocurrencies and commodities also delivered substantial returns over the 12-month period in which the world economy rebounded from a recession.

Public pension fund assets globally exceeded $20 trillion at the end of last year, due to high stock market returns and rising contributions from workers, adviser and data firm Global SWF said in a report.

In June, Al-Fadly said in an interview that Hassana’s merger with the another Saudi pension body – the Public Pension Agency – would cut costs and help increase investment returns. The fund hasn’t previously disclosed much about its investments, although it did announce that it would co-lead a consortium with BlackRock Real Assets in signing a $15.5bn lease-and-leaseback deal with Saudi Aramco for its gas pipeline network.