[PIF GLOBAL ASSET MANAGEMENT FORUM]
FROM CONVICTION TO ALLOCATION: MARKET DEPTH, LIQUIDITY, & TRADABILITY

The discussion revolves around investment strategies in the Saudi equity market, focusing on how conviction is formed and translated into portfolio allocations. Ahmad, Head of Investment Research at PIF, emphasizes the importance of valuation frameworks adapting to market realities, considering cost of capital, tax regimes, and growth profiles. Dana, Head of Research at Alpha Capital, highlights the need for small and mid-cap companies to improve governance and visibility to attract investor interest. Karim, CEO at Introspect Capital, discusses the impact of Saudi retail investors allocating capital abroad on domestic equity valuations. Badar, Head of Portfolio Management Section at PIF, explains how the Saudi equity market has evolved, with increased competition for price discovery. The panelists discuss the importance of liquidity and governance in making investment decisions. Foreign inflows are expected to increase competition for high conviction trades, leading to a deeper and more competitive market. The speakers explore how to embed intangible factors like governance and management credibility into valuation models. They agree that liquidity is increasingly important for managing risk and adapting to market changes.