Malaysia’s Khazanah highlights challenges in driving alpha under transition models

Khazanah Nasional Berhad have concerns about whether portfolio companies' low-carbon transition can drive alpha in the short term, but believes that having the right funding is critical to driving an ESG makeover. The Malaysian sovereign wealth fund believes governance, or “G”, is the strongest force in driving alpha for the portfolio. “’G’ is very important, because you have to have the right boards to understand issues of sustainability and make sure that your companies are re…