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Kuwait’s $124bn pension fund had record first-half profit

Kuwait’s $124bn pension fund had record first-half profit

A new management team was brought into the fund in 2017 to transform the state-owned institution

Kuwait’s $124bn pension fund racked up a record profit in the first half, continuing a turnaround for an institution previously marred by a corruption scandal.

The Public Institution for Social Security, which owns a quarter of US private equity firm Stone Point Capital, said profit rose 362 per cent to $12.1bn in the first half. It surged 611 per cent to $4.7bn in the second quarter, reflecting the “governance and strength” of its new investment strategy, according to a statement on Wednesday.

A new management team was brought into the fund in 2017 to transform the state-owned institution after its former head was found guilty of personally profiting from the organization over decades. The fund has since exited more than $20bn in questionable deals in a major reorganisation of its portfolio.

PIFSS, as the fund is known, said in August it aims to have 12 per cent to 17 per cent of its portfolio in real estate, followed by private equity at between 8 per cent and 13 per cent and infrastructure at 3 per cent to 10 per cent.

Between 40 per cent and 60 per cent of its portfolio is in stocks and fixed income.

PIFSS also owns 25 per cent of Oak Hill Advisors and 10 per cent of TowerBrook Capital Partners.

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