Kuwaiti wealth fund may pull billions from external managers
Kuwait Investment Authority is planning to manage more of its own assets as the world’s fifth-largest sovereign wealth fund seeks to take more risk to boost returns. The KIA, as the fund is known, wants to increase the allocation of funds managed in-house to as much as 8% from 1% or 2% currently, MD Bader Al Saad said on Wednesday at the World Economic Forum in Davos, Switzerland. The KIA has $592bn of assets, according to the Sovereign Wealth Fund Institute, meaning $35bn could be withdrawn from external managers. "Why do I have to pay extra fees for less return?" he said. The shift translates into "a big lump sum but it’s small compared to the core portfolio", Al Saad said. The KIA joins other wealth funds and institutional investors seeking to manage more assets internally as management fees come under scrutiny. The California Public Employees’ Retirement System, the largest US pension, said last week it was developing plans to shift as much as $30bn from external to internal man...
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