Kuwait Sovereign Wealth Fund Chief Warns Investors Against Cutting U.S. Exposure

The head of the Kuwait Investment Authority (KIA), managing nearly $1 trillion, reaffirmed the fund's commitment to U.S. investments. He stated that reducing U.S. asset allocations may be risky for investors, emphasizing the breadth and depth of the U.S. markets, including fixed income, private equity, and real estate. Despite concerns about U.S. debt and credit rating downgrades, Kuwait remains optimistic about the country's economic resilience. The trend of decreasing U.S. exposure continues among global investors, but local officials warn against premature divestment.