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