Hong Kong Monetary Authority Investment Portfolio

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Overview

The Hong Kong Monetary Authority Exchange Fund is Hong Kong's sovereign wealth fund, established under the Exchange Fund Ordinance with the primary objective to affect the exchange value of the Hong Kong dollar. The Fund is managed by the Hong Kong Monetary Authority (HKMA) under delegated authority of the Financial Secretary and advised by the Exchange Fund Advisory Committee (EFAC). Headquartered in Hong Kong, the Fund reached total assets of HK$4,151.4 billion (approximately $531 billion) at end-December 2025, up from HK$4,081.0 billion at end-2024. The accumulated surplus stood at HK$936.1 billion at end-December 2025.

The Exchange Fund comprises four distinct portfolios: the Backing Portfolio holds highly liquid US dollar assets backing the Monetary Base; the Investment Portfolio holds public market assets; the Long-Term Growth Portfolio invests in private equity and real assets; and the Strategic Portfolio holds shares in Hong Kong Exchanges and Clearing Limited acquired for strategic purposes. Approximately 71% of investments are managed in-house by the HKMA's Exchange Fund Investment Office, while about 29% are managed by external fund managers, including all listed equity portfolios and specialized asset classes. The Fund operates as an integrated part of Hong Kong's monetary and financial system, with its primary mandate taking precedence over investment return objectives.

Investment Mandate

The Exchange Fund operates under a dual mandate structure. The primary objective is to affect the exchange value of the Hong Kong dollar; the secondary objective is to maintain stability and integrity of Hong Kong's monetary and financial systems. Four investment objectives guide the Fund's operations: preserve capital, ensure the entire Monetary Base is fully backed by highly liquid US dollar assets, ensure sufficient liquidity for monetary and financial stability, and subject to those three constraints, achieve investment return to preserve long-term purchasing power. This hierarchy places monetary stability and liquidity ahead of return maximization.

The Investment Portfolio focuses on bond and equity markets of OECD member economies and has diversified into emerging market and Mainland bonds and equities, private equity, and real assets. The Backing Portfolio holds highly liquid US dollar-denominated assets of high credit quality to provide full backing to the Monetary Base. The Long-Term Growth Portfolio, established in 2009, invests in private equity and real assets to enhance medium and long-term returns. The Strategic Portfolio, which holds Hong Kong Exchanges and Clearing Limited shares, is excluded from performance assessment. The investment process is underpinned by strategic asset allocation (benchmark) and tactical asset allocation decisions, with benchmark and tracking error limits determined by the Financial Secretary in consultation with EFAC.

At end-December 2025, the currency mix stood at 79.5% US dollar (HK$3,308.05 billion), 5.8% Hong Kong dollar (HK$241.94 billion), and 14.7% other currencies (HK$611.20 billion). The Long-Term Growth Portfolio held a market value of HK$578.4 billion, comprising HK$417.1 billion in private equity and HK$161.3 billion in real assets, with outstanding commitments of HK$296.4 billion. The Fund does not disclose target allocation ranges or percentages for asset classes, only the actual portfolio structure and currency mix.

Financial Position

Total Exchange Fund assets reached HK$4,151.4 billion at end-December 2025, an increase of HK$70.4 billion from end-2024. Investment income for 2025 totaled HK$331.0 billion (unaudited), comprising gains on bonds of HK$142.2 billion, gains on Hong Kong equities of HK$33.9 billion, gains on other equities of HK$74.1 billion, positive currency translation of HK$38.4 billion, and gains on other investments of HK$42.4 billion. The Fund earned fees on Fiscal Reserves placements of HK$16.5 billion in 2025 at a rate of 4.4%, and fees on HKSAR Government funds and statutory bodies placements of HK$14.7 billion. The AUM figure of $531 billion is converted from HK$4,151.4 billion using an approximate rate of 7.81 HKD per USD as of 31 December 2025. This represents the total Exchange Fund balance sheet; the Investment Portfolio component is a subset of this total.

Investment performance for calendar year 2025 showed an overall return of 8.0% (excluding the Strategic Portfolio). The Investment Portfolio returned 12.4%, the Backing Portfolio returned 5.2%, and the Long-Term Growth Portfolio achieved an annualized internal rate of return of 11.2% since its inception in 2009 through end-September 2025. Multi-year averages show a 3-year average return of 6.2% (2023-2025), a 5-year average of 3.6% (2021-2025), a 10-year average of 3.9% (2016-2025), and an average of 4.6% since 1994. The Fund has published annual returns for every calendar year from 1994 through 2025, providing a comprehensive 32-year performance record.

• Assets under management: $531 billion at end-December 2025 (converted from HK$4,151.4 billion at 7.81 HKD/USD)
• Investment return 2025: 8.0% overall (excluding Strategic Portfolio); Investment Portfolio 12.4%; Backing Portfolio 5.2%
• Long-Term Growth Portfolio: 11.2% annualized IRR since inception in 2009 through end-September 2025
• Accumulated surplus: HK$936.1 billion at end-December 2025

DEEP Disclosure Rating

The DEEP Disclosure Rating measures how much a fund discloses about itself. It is a disclosure and governance measure only, and not a judgment of investment quality or creditworthiness. The Hong Kong Monetary Authority Exchange Fund's DEEP Disclosure Score is 62 of 100, band Adequate. It publishes an annual report with audited financial statements, discloses assets under management with as-of date, discloses investment performance and return earned, discloses fees and investment costs, publishes an Investment Policy Statement equivalent in the annual report Reserves Management chapter, discloses actual asset allocation, names governing board and trustees and senior investment staff, and makes disclosures freely and publicly accessible with no paywall. It does not disclose target asset allocation ranges, does not disclose portfolio holdings, does not disclose how it selects managers or name its investment consultant, does not publish an RFP or procurement process or portal, and does not publish board or committee meeting materials or minutes, which places it in the Adequate band. Last assessed October 2026, on HKMA Annual Report 2025 and published press releases. Items that cannot apply to a fund's type are excluded from its score rather than scored as zero. The fund-specific basis is included in the DEEP Disclosure Report. The full scoring rubric is public on the DEEP Disclosure Rating methodology page. A detailed, pillar-by-pillar and item-by-item breakdown of this fund's score is available as a DEEP Disclosure Report on request.

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Manager Approach and Matching Profile

Pursuit verdict: Active managers: limited opportunity. The Fund manages approximately 71% of assets in-house; external managers handle about 29% including all listed equity portfolios and specialized asset classes. The Fund does not disclose external manager names, selection criteria, or an RFP process. Passive managers: limited opportunity. The Fund does not disclose whether external equity mandates are active or passive, nor does it name index providers or passive managers. Private equity and real asset managers: potential opportunity in the Long-Term Growth Portfolio, which held HK$578.4 billion (approximately $74 billion) at end-2025 with outstanding commitments of HK$296.4 billion, but the Fund does not disclose manager names, commitment pacing, or selection process. No public procurement portal or consultant is named. Entry depends on direct engagement with the HKMA's Exchange Fund Investment Office; the selection process and criteria are not publicly disclosed.

• Target vs. actual allocation: The Fund discloses actual asset allocation by portfolio structure and currency mix but does not disclose target allocation percentages or ranges. At end-December 2025, the currency mix stood at 79.5% US dollar (HK$3,308.05 billion), 5.8% Hong Kong dollar (HK$241.94 billion), and 14.7% other currencies (HK$611.20 billion). The Long-Term Growth Portfolio held HK$578.4 billion, comprising HK$417.1 billion in private equity and HK$161.3 billion in real assets. The Backing Portfolio holds highly liquid US dollar-denominated assets to provide full backing to the Monetary Base. The Investment Portfolio holds public market assets including developed and emerging market bonds and equities. The Strategic Portfolio holds Hong Kong Exchanges and Clearing Limited shares. No target ranges or rebalancing bands are disclosed.
• Historical AUM and return series: The Fund discloses total assets at end-2024 and end-2025, and annual investment returns from 1994 through 2025. The Long-Term Growth Portfolio annualized IRR is disclosed since inception in 2009 through end-September 2025.

  Period	AUM (USD)	Return (%)
  2024 year-end	$522 billion	4.6
  2025 year-end	$531 billion	8.0
  2023	Not disclosed	5.2
  2022	Not disclosed	5.5
  2021	Not disclosed	4.1
  2020	Not disclosed	6.6
  2019	Not disclosed	5.3
  2018	Not disclosed	2.0
  2017	Not disclosed	7.4
  2016	Not disclosed	1.4
  2015	Not disclosed	2.0
  2014	Not disclosed	9.5
  2013	Not disclosed	11.8
  2012	Not disclosed	4.4
  2011	Not disclosed	2.7
  2010	Not disclosed	10.8
  2009	Not disclosed	12.1
  2008	Not disclosed	-4.5
  2007	Not disclosed	10.8
  2006	Not disclosed	10.2
  2005	Not disclosed	3.6
  2004	Not disclosed	5.9
  2003	Not disclosed	5.7
  2002	Not disclosed	-0.6
  2001	Not disclosed	3.1
  2000	Not disclosed	5.1
  1999	Not disclosed	4.8
  1998	Not disclosed	-5.6
  1997	Not disclosed	0.7
  1996	Not disclosed	6.1
  1995	Not disclosed	5.1
  1994	Not disclosed	2.4
  3-year avg 2023-2025	Not disclosed	6.2
  5-year avg 2021-2025	Not disclosed	3.6
  10-year avg 2016-2025	Not disclosed	3.9
  Avg since 1994	Not disclosed	4.6
  LTGP annualized IRR since 2009 through Sep 2025	Not disclosed	11.2

  Returns are for the total Exchange Fund excluding the Strategic Portfolio unless otherwise noted. The Investment Portfolio returned 12.4% in calendar year 2025; the Backing Portfolio returned 5.2% in calendar year 2025. Historical AUM figures prior to 2024 are not disclosed in the sources.
• External manager roster and consultant detail: The Fund discloses that approximately 29% of assets are managed by external fund managers, including all listed equity portfolios and specialized asset classes, but does not name specific external managers or provide a detailed roster of mandates with named managers. No investment consultant is named. The Fund states that it employs external fund managers to tap the best investment expertise available in the market and draw on diverse investment styles and external market insights, but the selection process and criteria are not publicly disclosed.

  Mandate	Benchmark or strategy	AUM	Manager	Fee or expense
  Backing Portfolio	Highly liquid US dollar-denominated assets of high credit quality to provide full backing to Monetary Base	Not disclosed	HKMA in-house	Not disclosed
  Investment Portfolio	Public market assets (developed and emerging market bonds and equities, including OECD, emerging market and Mainland bonds and equities)	Not disclosed	HKMA in-house and external managers (all listed equity portfolios managed externally)	Not disclosed
  Long-Term Growth Portfolio	Private equity and real assets for medium and long-term growth	$74 billion (HK$578.4 billion at end-2025)	External fund managers	Not disclosed
  Strategic Portfolio	Shares in Hong Kong Exchanges and Clearing Limited held for strategic purposes	Not disclosed	Not applicable	Not applicable

  The Fund discloses fees on Fiscal Reserves placements of HK$16.5 billion at a rate of 4.4% in 2025, and fees on HKSAR Government funds and statutory bodies placements of HK$14.7 billion, but does not disclose external manager fees or expense ratios by mandate.
• Commitment pacing: The Fund discloses outstanding investment commitments of the Long-Term Growth Portfolio of HK$296.4 billion at end-2025, but does not disclose commitment pacing, deployment schedule, or vintage year targets. The Long-Term Growth Portfolio held a market value of HK$578.4 billion at end-2025, comprising HK$417.1 billion in private equity and HK$161.3 billion in real assets. The Fund states that it diversifies investments in a prudent and incremental manner, including in emerging market and Mainland bonds and equities, private equity and real assets, but does not disclose annual commitment targets or pacing plans.
• RFP, procurement, and board calendar: The Fund does not disclose an RFP process, procurement portal, or calendar. No consultant of record is named. The Fund does not disclose a stance on unsolicited proposals. External managers are engaged by the HKMA's Exchange Fund Investment Office; the selection process and criteria are not publicly disclosed. The Exchange Fund Advisory Committee held five meetings in 2025; the Investment Sub-Committee held five meetings; the Governance Sub-Committee held five meetings; the Audit Sub-Committee held two meetings; and the Currency Board Sub-Committee held four meetings. No public board or committee meeting calendar is published, and meeting minutes or materials are not disclosed. The realistic entry route for external managers is direct engagement with the HKMA's Exchange Fund Investment Office, but no public pathway or procurement process is disclosed.

Matching profile: these data points feed the cross-fund manager matching profile.

Sources: HKMA Annual Report 2025 Reserves Management chapter, HKMA Press Release 28 January 2026, HKMA Annual Report 2025 Advisory Committees chapter.

Governance and Leadership

The Exchange Fund Advisory Committee (EFAC) is established under the Exchange Fund Ordinance. The Financial Secretary, Paul Chan Mo-po, serves as ex officio Chairman; other members are appointed by the Financial Secretary in their personal capacity for expertise in monetary, financial, economic, investment, accounting, management, business and legal matters. Eddie Yue serves as Chief Executive of the Hong Kong Monetary Authority (the Monetary Authority). Deputy Chief Executives are Arthur Yuen, Howard Lee, and Darryl Chan. EFAC is assisted by five Sub-Committees: Governance Sub-Committee, Audit Sub-Committee, Currency Board Sub-Committee, Investment Sub-Committee, and Financial Infrastructure and Market Development Sub-Committee.

The Investment Sub-Committee monitors the HKMA's investment management work and makes recommendations on investment policy, strategy, and risk management; it held five meetings in 2025. The Governance Sub-Committee monitors HKMA performance and makes recommendations on remuneration, human resources, budgetary, administrative and governance issues; it met five times in 2025. The Audit Sub-Committee reviews financial reporting and internal control systems; it met two times in 2025. The Currency Board Sub-Committee monitors Currency Board arrangements; it met four times in 2025; records of meetings and reports on Currency Board operations are published regularly. EFAC members include representatives from major financial institutions, government, academia, and professional services; brief biographies and a Register of Members' Interests are available on the HKMA website. Meeting minutes or materials for EFAC and the Sub-Committees are not published; only meeting frequency is disclosed.

• Eddie Yue, Chief Executive, Hong Kong Monetary Authority (Monetary Authority)
• Paul Chan Mo-po, Financial Secretary (Chairman of Exchange Fund Advisory Committee)
• Arthur Yuen, Deputy Chief Executive, Hong Kong Monetary Authority
• Howard Lee, Deputy Chief Executive, Hong Kong Monetary Authority
• Darryl Chan, Deputy Chief Executive, Hong Kong Monetary Authority

How to Engage

The Fund employs external fund managers to tap the best investment expertise available in the market and draw on diverse investment styles and external market insights. Approximately 29% of assets are managed by external fund managers, including all listed equity portfolios and specialized asset classes. The Long-Term Growth Portfolio, which invests in private equity and real assets, is managed by external fund managers. External managers are engaged by the HKMA's Exchange Fund Investment Office, but the selection process and criteria are not publicly disclosed. No investment consultant is named in the sources. The Fund does not disclose an RFP process, procurement portal, or calendar. No stance on unsolicited proposals is disclosed.

The Fund integrates ESG factors into investment processes, with the guiding principle that priority is given to ESG investments if their long-term risk-adjusted returns are comparable with other investments. The Fund maintains a robust risk management and compliance monitoring framework with three lines of defence and regularly monitors credit, market, liquidity and operational risks. The Fund diversifies investments in a prudent and incremental manner, including in emerging market and Mainland bonds and equities, private equity and real assets. Managers seeking to engage with the Fund should contact the HKMA's Exchange Fund Investment Office directly; no public pathway or procurement process is disclosed.

Sources and Documents

• HKMA Press Release 28 January 2026: Exchange Fund Position at end-December 2025
• HKMA Annual Report 2025, Reserves Management chapter (published January 2026)
• HKMA Annual Report 2025, Advisory Committees chapter (published January 2026)
• HKMA Press Release 29 September 2026: Exchange Fund Bills Tender Results

Data Notes and Methodology

This profile is based on the HKMA Annual Report 2025 (published January 2026, covering the year ended 31 December 2025), HKMA press releases dated 28 January 2026 and 29 September 2026, and published governance materials on the HKMA website. The profile was compiled on 1 October 2026. Total Exchange Fund assets of $531 billion are converted from HK$4,151.4 billion using an approximate rate of 7.81 HKD per USD as of 31 December 2025. This represents the total Exchange Fund balance sheet; the Investment Portfolio component is a subset of this total. The Long-Term Growth Portfolio AUM of $74 billion is converted from HK$578.4 billion at the same rate. Investment returns are stated as reported by the HKMA and exclude the Strategic Portfolio unless otherwise noted. The Investment Portfolio returned 12.4% in calendar year 2025; the Backing Portfolio returned 5.2%; the Long-Term Growth Portfolio annualized IRR is 11.2% since inception in 2009 through end-September 2025. Historical AUM figures prior to 2024 are not disclosed in the sources. External manager names, selection criteria, target allocation ranges, and commitment pacing are not disclosed. The DEEP Disclosure Rating assessment is based on the HKMA Annual Report 2025 and press releases as of 1 October 2026.