Kuwait’s SWF not ‘hit’ by American and European stock performances

KUWAIT CITY, May 11: According to informed sources, the investments of Kuwait’s sovereign wealth fund (SWF) will not actually be affected by the performance of American and European stocks, which recently recorded their worst weekly performance in two months, reports Al-Rai daily.

They explained that the investment mechanism and methodology followed by the Kuwait Investment Authority provide appropriate protection against the immediate risks that are pressing on global stock markets from time to time.

The authority’s investments portfolios and funds in global stock markets, and their long-term investments in general are not affected by the partial movements they are exposed to. They also absorb the accompanying investment risks, including geopolitical risks.

Raising the interest globally has positive and negative repercussions. On the one hand, the sovereign wealth fund’s returns from its alternative investments and deposits will rise in the long term, while the negative impact will be linked to stocks.

The sources revealed that the Kuwait Investment Authority’s officials plan to change their plans in favor of increasing alternative investments and deposits, or even increasing the shares of US Treasury

bonds after the rise in the interest rates.

According to recent data, Kuwait’s Sovereign Wealth Fund ranks third among the top sovereign wealth funds in the world, with estimated assets of about $ 740 billion.