The Kuwait Investment Authority (KIA) began increasing its exposure to bonds and cash two years ago to boost liquidity in its portfolio as the global economy showed signs of weakness.

According to local media reports KIA made calculated exits from investments it felt were vulnerable to a downturn in global financial markets as the world economy began to show signs of faltering two years ago.

Last month, the International Monetary Fund revised its forecast for global growth in 2019 as well as next year, warning that further tariffs in the US-China trade tension or a no-deal Brexit could slow growth further, weaken investment and disrupt supply chains.

However, despite recent volatility in equity markets, KIA has achieved a 10 per cent return on its investments in US stock markets since the beginning of 2019.

 

© 2019 CPI Financial. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.