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.