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Halal Business

KIA restructures its portfolio on signs of global economic weakness

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According to the Sovereign Wealth Fund Institute, Kuwait’s sovereign wealth fund manages $592 billion of assets and does not publicly disclose its investments or detailed strategy.

Sunday 18, August 2019

The Kuwait Investment Authority (KIA) began increasing its exposure to bonds and cash two years ago to boost liquidity in its portfolio as the global economy showed signs of weakness.

According to local media reports KIA made calculated exits from investments it felt were vulnerable to a downturn in global financial markets as the world economy began to show signs of faltering two years ago.

Last month, the International Monetary Fund revised its forecast for global growth in 2019 as well as next year, warning that further tariffs in the US-China trade tension or a no-deal Brexit could slow growth further, weaken investment and disrupt supply chains.

However, despite recent volatility in equity markets, KIA has achieved a 10 per cent return on its investments in US stock markets since the beginning of 2019.

 

TAGS : Kuwait Investment Authority, Sovereign Wealth Fund Institute, International Monetary Fund, US-China Trade tension

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