Kuwait fund touts $150bn profit as it ex­plains Areva flop

Muscat Daily - - BUSINESS -

Kuwait City, Kuwait - Kuwait In­vest­ment Au­thor­ity(KIA), the world’s fourth-largest sov­er­eign wealth fund, said it earned a net in­come of US$150bn in the last six fis­cal years end­ing March 31, play­ing down the im­pact of losses re­sult­ing from its in­vest­ment in French en­ergy com­pany Areva SA.

That the fund prof­ited while in­vested in Areva re­flects ‘how keen KIA is on di­ver­si­fy­ing its in­vest­ments to make prof­its with­out be­ing af­fected by los­ing in one in­vest­ment’” state-run KUNA news agency re­ported, cit­ing a state­ment from KIA. Con­cur­rently, it an­nounced the sale of its 4.8 per cent stake in Areva, pur­chased in De­cem­ber 2010 for € 600mn . The size of the loss was not dis­closed.

KIA, which has been crit­i­cised by Kuwaiti law­mak­ers for the Areva losses, said it had been try­ing to sell the shares since 2014, af­ter the nu­clear dis­as­ter in Fukushima, Japan, led to a de­cline in in­vest­ments in the in­dus­try. The fund is plan­ning to man­age more of its own as­sets as it seeks to take more risk to boost re­turns, its former manag­ing direc­tor, Bader al Saad, told Bloomberg in Jan­uary.

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