Kuwait Investment Authority to adopt new strategy in ‘management’ of fund | ZAWYA MENA Edition

Kuwait Investment Authority to adopt new strategy in ‘management’ of fund | ZAWYA MENA Edition:

Kuwait Investment Authority (KIA) will follow a new strategy in the management of cash of the State’s Public Reserve Fund through its focus during the coming period on short-term investment of assets and investments to facilitate withdrawals from this reserve, reports Al-Jaridah daily quoting informed sources. The sources explained that the usual strategy of the KIA in the management of the general reserve is still ongoing, but preferred to make adjustments to its cash management, through the short term investment of assets instead of longterm so as to be able to exit from the short-term easily, unlike long-term that is difficult to exit when needed to provide liquidity to meet government withdrawals from the general reserve. The KIA has resorted to this option because the liquidity of the General Reserve Fund, in light of the continued growth of public expenditure, is running out unless the required financial reforms are enforced. The sources pointed out that this strategy will be adopted until the end of the Ministry of Finance implement its plans and strategies to address the budget deficit.