‘Kuwait Sovereign’ one of 4 GCC Wealth Funds – ARAB TIMES

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‘Among 10 investment funds in the world’

KUWAIT CITY, January 29: The Kuwait Sovereign Wealth Fund was one of the four sovereign wealth funds of the Gulf Cooperation Council countries and was among the top 10 investment funds in the world with assets estimated at $7.4 trillion, reports the daily Al-Anba. A report, recently published in this regard, states that Kuwait’s first sovereign wealth fund was established following the founding of the Kuwait Investment Office in London in 1953 and thus started the global trend of creating sovereign wealth funds in the 1950s. , to allow countries to invest their wealth in various entities to earn profits and stabilize the economy through the diversification of assets into bonds, stocks and other investments.

The report adds that the Norwegian sovereign wealth fund managed by its Central Bank has assets of $1.33 trillion and ranks first in the world, followed by the fund of the Chinese investment company with assets of $1.222 trillion. . These two funds are the only ones with assets above the trillion dollar barrier among funds. The other sovereign that appears on the list of the most important funds is the Kuwait Sovereign Wealth Fund of the Kuwait Investment Authority, as well as the funds affiliated with the Abu Dhabi Investment Authority, the Investment Corporation of Dubai, the Singapore Government Investment Corporation, the Saudi Public Investment Fund and the Qatar Investment Authority.

the biggest
The report states that the world’s 10 largest sovereign wealth funds, including leading funds from Gulf Cooperation Council countries, manage assets worth $7.4 trillion out of total assets of $9.56 trillion. dollars held by 100 sovereign wealth funds around the world. The report pointed out that the past few years have seen an increase in assets under management by sovereign wealth funds as more such funds continue to appear every day, and we can also expect total assets under management to increase over time. global scale.

However, what is interesting is the recent trend of these sovereign wealth funds to invest their money in alternative investments such as real estate, infrastructure, private equity and hedge funds, even as more and more of sovereign wealth funds are exploring investment opportunities outside the realm of equities and equities, it seems that the Norwegian fund does not fall into this trend, since the share of alternative investments in its portfolio does not exceed 3% of its assets total as in 2021, when the fund’s assets were spread across equities, fixed income, real estate and renewable energy infrastructure, with the former two getting the largest share. Norway’s sovereign wealth fund generated 1.58 trillion kroner ($177 billion) in investment returns last year, backed by tech stocks. The world’s largest sovereign wealth fund posted a return of 14.5% in 2021, making it the second highest return in its history, having reached 1.69 trillion crowns in 2019. “The good results are mainly due to the strong performance of the stock market throughout the year,” Nikolai Tagin, the fund’s executive director, said in a statement. He added: “There was good performance across all sectors, but investment in technology and financial companies did particularly well.”





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