One of Hong Kong’s largest asset owners might be exploring private equity and infrastructure investments post-Covid, but the fund management industry says the Exchange Fund could be doing more on the ESG front.
The de facto sovereign wealth fund of Hong Kong on Monday reported an investment loss of HK$202.4 billion ($25.8 billion), or 4.4%, for 2022 - the worst performance since 2008.
Hong Kong's de facto central bank engages different external asset managers to help manage various asset classes from time to time. Here’s a look at how it selects external investment managers for its Exchange Fund.
The worst global investment environment in 50 years has left the Exchange Fund with 'nowhere to hedge'. HKMA's chief executive said the fund plans to adopt a defensive position heading into 2023.
A slowing economy, higher interest costs, and a poorly performing de facto sovereign wealth fund all cloud Hong Kong's outlook in the second half of 2022.
India’s Life Insurance Corp initial offering was oversubscribed 2.95 times, with participation from Norges Bank Investment Management, GIC, ADIA, and domestic funds; the Saudi Public Investment Fund will allow investments in Israeli companies for the first time with a $2 billion commitment in private-equity firm Affinity Partners; Hong Kong's Exchange Fund posts $7 billion quarterly loss; and more
The de facto central bank plans to increase the liquidity level in its portfolio. Experts say this could mean cutting its alternative asset exposure while raising its allocation to bonds.
As the Hong Kong Monetary Authority rotates senior staff roles, its $541 billion Exchange Fund has rebounded strongly from a first-quarter investment loss.
The new portfolio, which can help to lift returns, distinguishes itself from the Future Fund's placements with the Exchange Fund's long-term growth portfolio.
HK Financial Secretary Paul Chan said in his budget speech that he will seek to make the fund's investments more diversified in order to boost returns.
The $28 billion state institution, which launched on January 1, is due to receive yearly flows of up to a third of Hong Kong's annual budget surplus, forecast to be $6 billion this year.
A government committee has recommended that Hong Kong's land fund be used to create a sovereign cash pool to be managed by HKMA with a focus on private equity and real estate.