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.
The HKMA directly manages the majority of the Exchange Fund’s investments, including the entire Backing Portfolio and part of the Investment Portfolio. This part of the Investment Portfolio includes a set of portfolios invested in global fixed-income markets and various derivative overlay portfolios implementing macro risk management strategies for the Exchange Fund.
The HKMA employs external fund managers to manage about a quarter of the Exchange Fund’s assets, including all of its listed equity portfolios and other specialised asset classes. The purpose of engaging external managers is to tap the best investment expertise available in the market to capture sustainable returns, to benefit from diverse and complementary investment styles, and to gain their market insights and technical expertise in investment.