Saudi Pension Fund Pursues Overhaul of Management, Valued at $320 Billion
Hassana Investment Co. Undergoes Management Shift
Saudi Arabia's largest pension fund, Hassana Investment Co., is undergoing a reorganization of its senior management team. This change comes after the departure of several key executives, including the Chief Investment Officer for Regional Markets, Ahmed Alqahtani, and the Head of Local Public Equity, Ahmed Alhumaidan, in May.
The board of Hassana is still looking for a permanent replacement for Saad Alfadly, who resigned in July after leading the company for 12 years. By the end of August, the Chief Strategy Officer, Hamza Khushaim, and the General Counsel, Shaima Bakhsh, are expected to depart from the company.
Despite these departures, Hassana Investment Co. has continued to grow and expand. With over $320 billion in assets under management, the company has broken into the ranks of the world's top 10 pension funds in 2023. The company's investment portfolio has expanded significantly in both size and geographic footprint since its early focus on Saudi equities and real estate.
Hani Al-Jehani is currently serving as the acting CEO of Hassana Investment Co. He is among several candidates being considered for the permanent CEO position. The company is also working on joint ventures with Brookfield Asset Management and State Street Global Advisors, with Hassana serving as an anchor investor.
The recent departures and upcoming changes at Hassana Investment Co. occur amid broader regulatory and financial system developments in Saudi Arabia. The kingdom has implemented significant amendments to its investment fund regulatory framework via the Capital Market Authority (CMA) to improve investor protections, capping fund manager fees, expanding digital fund distribution through fintech platforms, and simplifying foreign investment access.
These changes aim to enhance transparency, fee regulation, and market accessibility, which could impact the operational environment of investment companies like Hassana. The Saudi financial system remains resilient amid some challenges, with the Saudi Central Bank reinforcing regulatory frameworks to address credit growth pressures and higher funding costs.
The reorganization at Hassana Investment Co. is likely to contribute to the broader objectives of strengthening financial market stability and fostering economic diversification in Saudi Arabia. These objectives are aligned with Saudi Arabia’s Vision 2030 goal of financial sector development and diversification away from oil dependency.
For the most up-to-date information on leadership changes at Hassana Investment Co., corporate disclosures or specialized financial news sources would be needed.
- The reorganization of Hassana Investment Co.'s senior management team could potentially include a new CEO, with Hani Al-Jehani being among the candidates under consideration.
- With the expansion of its investment portfolio and assets under management, Hassana Investment Co. is continuing to focus on business growth and investment, with plans for joint ventures with Brookfield Asset Management and State Street Global Advisors.
