Footnote to my previous post.
See how Arab oil revenues have been wisely, prudentially and, as far as Israel is concerned, peacefully, invested:
Kuwait Investment Office in London
Profile
The Kuwait Investment Office (KIO) is based in the City of London and manages funds on behalf of the State of Kuwait. It was set up in 1953 with the aim of investing surplus oil revenues to reduce the reliance of Kuwait on its finite oil resource.
The State of Kuwait transfers 10% of the oil revenue into the Reserve for Future Generations each year, which is the overall responsibility of the Kuwait Investment Authority in Kuwait, the parent organization of the KIO.
The KIO manages its funds as a global investor, with investments in all main geographical areas and asset classes, which are managed by portfolio managers on an active basis. It is a long term investor and the in house investment management team covers equities, fixed income, treasury, private equity and property. The KIO aims to produce out-performance relative to the benchmark and within specific risk parameters.
A diverse range of people work at the KIO including Kuwaiti and non-Kuwaiti nationals and the total number of staff around one hundred.
Objectives
The objectives of the Kuwait Investment Office are:
To manage that portion of the Future Generation Fund of the State of Kuwait entrusted to the Office, to maintain the real value of such funds and to achieve a fair return over the long term.
To regenerate the KIO and enhance its reputation as an expert and progressive institution in the international financial markets.
Office Structure
The structure of the KIO is established with a number of small professional teams, and organized on an investment / non investment basis. The funds under management are managed by asset class, and then divided into geographically based portfolios. The fund managers, who are specialists in their respective areas, actively manage their portfolios through fundamental and quantitative analysis.
Equities Group
Actively manages the global equity portfolios of the KIO through effective asset allocation, stock selection and investment decisions within three Equity Departments; Americas, European and Asia Pacific. Investment is primarily in the developed markets with a mandate to outperform the MSCI Developed World Index but a portion is also allocated to emerging markets.
Fixed Income Group
Actively manages the KIO’s investments in the debt capital markets. These funds are actively managed through the application of sound analysis of the macroeconomic environment, central bank policies, supply and demand dynamics, relative value, and product characteristics. The emphasis is on government bonds, although some investments are made in credits with a rating of AA or above.
Private Equity and Property
Manages the KIO investments in direct holdings companies and participates in private equity funds investing in buyouts, recapitalizations and the development of capital opportunities. In addition the department manages the global property portfolio.
Treasury
Treasury manages the KIO’s cash investments and responds to the requirements of the portfolios through liquidity management and foreign exchange activities.
Middle Office
Middle Office provides consolidated management information to senior management to support strategic decision making. Key areas of activities are the measurement of portfolio performance across asset classes, risk measurement and analysis and input into the strategic asset allocation process.
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kia.gov.kw |
