Malaysia’s sovereign wealth fund Khazanah Nasional Bhd is rebalancing its portfolio to invest more in developed markets, with an eye on managing expected risks from the new Donald Trump presidency in the US, its top official said.
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Khazanah invests heavily in Malaysia, with domestic investments amounting to 59.1 per cent of its portfolio, followed by North America at 15.5 per cent. The fund invests in sectors ranging from energy and healthcare to information technology and real estate, according to its website.
In an interview at the World Economic Forum’s annual gathering in Davos, Khazanah Managing Director Amirul Feisal Wan Zahir said the potential for less regulation, lower taxes, cheap energy, inflationary pressures and a strong US dollar, due to the Trump administration’s expected policies, provided opportunities to invest in developed markets.
“We do need to move still into developed markets … we look at US, Europe and Japan. US still is an attractive market,” Amirul Feisal said at the Global Markets Forum on Monday.
Amirul Feisal, however, said Khazanah could face challenges in China. Trump, who was sworn in on Monday, has threatened to slap tariffs of 10 to 60 per cent on Chinese goods.
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