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Kuwait’s Future Generations Fund achieves 33% growth

Kuwait’s Future Generations Fund

Kuwait’s Future Generations Fund (FGF) has achieved a growth of 33% during the fiscal year ending on the last March 31.

According to the Kuwaiti Finance Minister Khalifa Hamadeh, the performance of FGF in the past year was the best in its history.

A government source also stated that growth was achieved in the assets of the FGF, which increased by more than $150 billion in the last fiscal year.

Kuwait’s Future Generations Fund

In a statement published by the Ministry of Finance’s account on Twitter, the Minister of Finance confirmed that the FGF has outperformed its counterparts on the level of global sovereign funds that disclose their performance.

“The growth in the Generations Reserve Fund in the past five years has exceeded the total oil revenues for the same period and achieved results that exceed the goals set in the fund’s strategy,” the minister said.

The government source, who asked not to be unnamed, pointed out that the FGF, because it is closed and does not distribute profits, invests the returns it achieves automatically by purchasing assets.

He added that the boom achieved by US stocks during the last fiscal year was one of the main reasons for the increase in the returns of the FGF.

US stocks

“We have significant weight in American stocks, more than 50% of our assets were stocks,” he said. “That was very good for us.”

According to the credit rating agency Fitch, the assets of the fund, which is managed by the Kuwait Investment Authority, amounted to more than $580 billion at the end of last year.

But the source said that the fund’s assets were less than that at the beginning of the last fiscal year, hinting that it was just over $500 billion, without giving a specific number.

He added that “at the beginning of the fiscal year, the markets experienced a big drop, and we started from a low base, and we had cash that was used to buy assets in markets that rose 50%”.

Restriction

In another context, the Kuwaiti authorities, a few days ago, began implementing the Cabinet decision, which imposes restrictions on the movement of unvaccinated people.

The decision limits entering shopping malls, restaurants, cafes, health clubs and salons to only those who have received the vaccination.

The supervisory teams affiliated with the Capital Governorate Municipality branch carried out inspection tours in the governorate’s areas to implement the decision, according to the Kuwait News Agency (KUNA).

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