Investment Management

Guided by the investment objectives of the Exchange Fund, the HKMA regularly reviews the portfolio structure and target asset mix of the Exchange Fund taking into account the risks the Exchange Fund can afford to take, the liquidity it requires and the targeted long-term investment return. In addition, the HKMA actively manages the Exchange Fund’s assets. Most of the Exchange Fund’s assets are directly managed by the HKMA while the remaining assets are managed by external fund managers appointed by the HKMA.

Portfolio Segregation

The HKMA manages the Exchange Fund in distinct portfolios in order to meet the specific statutory purposes of the Exchange Fund. Broadly speaking, the Exchange Fund has two major portfolios – the Backing Portfolio and the Investment Portfolio.

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Asset Allocation

The investment process of the Exchange Fund is underpinned by decisions on two types of asset allocation — the strategic asset allocation and the tactical asset allocation.

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Day-to-day Management

Apart from ensuring that the Exchange Fund meets its statutory purposes, the HKMA also actively manages the Exchange Fund’s assets. Most of the assets are directly managed by the HKMA while the remaining assets are managed by external fund managers appointed by the HKMA.

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Last revision date : 26 August 2019