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.
The Hong Kong Monetary Authority reveals it has invested $2.2 billion in subsidiaries, both locally and overseas, in a new shift to diversify its $300 billion Exchange Fund portfolio.