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Future Generations Fund (FGF)
The FGF was created in 1976 by transferring 50% from the GRF at that time. In addition, a minimum of 10% of all state revenues are transferred to the FGF on an annual basis and all investment income is reinvested.
The FGF consists of investments outside Kuwait based on an approved Strategic Asset Allocation in various asset classes. KIA's asset allocation process is based on World GDP contributions and Market Capitalizations as well as various other tasks such as investment regulations (including tax system) and potential for future growth. Exceptions to this rule are those countries where the weighting was skewed due to core holdings such as BP and Daimler.
By law, a minimum of 10% of the all State revenues as well as 10% of the net GRF income are transferred to the FGF annually. All proceeds from the FGF's investments are reinvested again by law and any transfer from the FGF requires a specific legislation authorizing any withdrawal.
The FGF is the intergenerational saving platform
managed by the KIA.
The FGF has a KIA Board approved investment strategy that outlines the guidelines in parallel with the risk and return objectives of the fund.
The investment strategy is regularly reviewed and updated based on the changing economic and financial factors and expectations.
The FGF is a long term investor in various asset classes ranging from more traditional assets such as equities and bonds to alternatives such as private equity, real estate and infrastructure.
The FGF assets are managed by KIA's Kuwait and London offices based on the Board approved split.