Kuwait’s $124bn pension fund plans infrastructure boost

Kuwait’s $124bn pension fund plans infrastructure boost

Kuwait's $124bn pension fund, which posted a record first-half profit, plans to double its infrastructure investment and boost exposure to private equity, its director general said.

The new plan, developed with US-based consultancy Mercer, will start next year and will "entail increasing infrastructure from 5 per cent to 10 per cent as well as fine tuning some of the other allocations,“ Meshal Al-Othman, who heads the Public Institution for Social Security, said in an interview with Bloomberg TV on Wednesday.

The fund is looking to raise private equity's weight to 13 per cent of its portfolio from 10 per cent, while lowering its allocation for equities to 22 per cent from 27 per cent, he said. Its cash currently accounts for 10 per cent of the total, and the plan is