A government report has confirmed that the Kuwait Investment Authority (KIA), the nation's sovereign wealth fund, has reduced its exposure to global stock markets since October, shifting assets instead into short-term cash funds.
In a briefing to parliament, the government said KIA had cut the ratio of international share investments in a key fund in a bid to minimise the effect of the global financial crisis on Kuwait, the world's seventh-largest oil exporter.
The news comes after KIA, which manages Kuwait's substantial oil-generated assets, last year burned its fingers by buying into U.S. banks such as Citigroup and Merrill Lynch before both stocks nosedived and the latter filed for bankruptcy protection.
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