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Kuwait Triples Investment in Japan, Highlighting Sovereign Wealth Flight From U.S. Assets
The Kuwait Investment Authority (KIA), the oil-rich nation’s sovereign wealth fund, is planning to triple its investment in Japan to $48 billion, highlighting a global investment shift away from U.S. assets.
The Kuwait sovereign wealth fund already has $15 billion to $16 billion invested in Japan, but Kuna, the nation’s state news agency, quoted Finance Minister Mustapha al-Shamali, as saying that the “KIA has an intention to double or triple its investment in the Japanese market.â€
That investment boost would follow Japan’s recent agreement with Kuwait to reduce – or end – double taxation on interest, dividends, and capital gains. Japan…
6Aug2008 | Money Morning | Comments Off | ContinuedSovereign Wealth Funds Reducing Exposure to U.S. Dollar
State-run sovereign wealth funds are diversifying away from the U.S. dollar, as well as dollar denominated assets, at an unheralded pace, as the greenback’s protracted declined undermines the credibility of U.S. policymakers.
The Financial Times reported yesterday (Thursday) that one large, unnamed Gulf fund has cut its dollar-denominated holdings from more than 80% a year ago to less than 60%. Also, China’s State Administration of Foreign Exchange (SAFE) has been actively seeking deals with private equity firms in Europe as part of a specific strategy to reduce its dollar holdings.
A shift in policy at China’s SAFE is particularly significant because it holds…
18Jul2008 | Money Morning | 1 comment | Continued
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