The investments of the Kuwaiti sovereign fund will not actually be affected by the performance of the American and European stocks, which recently recorded their worst weekly performance in two months, explaining that the investment mechanism and methodology of the Kuwait Investment Authority provide appropriate protection against the immediate risks that put pressure on the Global stock markets from time to time.
The sources pointed out that the KIA investment portfolios and funds in global stock markets, and their investments in general for long-term, are not affected by the partial movements they are exposed to, in addition to absorbing the accompanying investment risks, including geopolitical risks, reports a local Arabic daily.
The sources explained that raising the interest globally has positive and negative repercussions. On the one hand, the sovereign 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 noted that the KIA 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 interest rates rise.
According to recent data, the Kuwait Sovereign Fund ranks third among the largest sovereign wealth funds in the world, with estimated assets of about $740 billion.