Malaysia's Sovereign Wealth Fund Is Seeking Hedges Against Inflation

Malaysia’s sovereign wealth fund has taken steps to build positions that can benefit during a period of uncertainty around the speed of monetary policy tightening. Photo: Bloomberg

(Bloomberg) — Malaysia’s sovereign wealth fund is betting on real assets and health care investments to help cushion it from inflation that’s forcing central banks around the world to raise borrowing costs and eating into longer-term returns.

“Inflation remains the biggest risk,” Khazanah Nasional Bhd. managing director Amirul Feisal Wan Zahir said in a Bloomberg TV interview Thursday. “Inflation is on the top of people’s minds at the moment,” and how governments and central banks react to it.