The determination of the currency of the investment portfolio on Hong Kong.’
Foreign currency investment portfolio on Hong Kong’s investment portfolio is managed by the Hong Kong monetary authority. Authority is the sovereign wealth Fund of the Government of the special administrative region of Hong Kong.
The penetration of the cash investment portfolio on Hong Kong.’
The investment portfolio is only one of two portfolios in the exchange Fund, monetary authority of Hong Kong. The exchange Fund also provides support portfolio that ensures the activities of the Board the Hong Kong currency. With the support of the portfolio consists of investments in highly liquid government securities of the United States, it is generally not considered as part of the national welfare Fund. According to the Institute of sovereign wealth funds, investment portfolio, management of 139.7 billion in assets as of March 2010 and the 10th largest sovereign Fund in the world.
Monetary Authority Hong Kong
Monetary authority Hong Kong monetary authority is Hong Kong’s de facto Central Bank. It was established on 1 April 1993, when the office of the exchange Fund and the Office of the Commissioner of banking merged. The organization reports directly to the financial Secretary.
In the exchange of the Fund’s Charter, the main task of the monetary authority of Hong Kong is to ensure stability of the national currency and banking system of Hong Kong. He is also responsible for improving the efficiency, integrity and development of the financial system.
Most of the Exchange Fund’s assets internally. All of the Reserve Fund is carried out internally, and some of the investment portfolio as well. However, the exchange Fund employs external managers for its equity portfolio and other specialized investments. The investment benchmark for the exchange Fund consists of 75% bonds and 25% stocks.
Cash Investment Portfolio Of The Administration Of Hong Kong
Foreign currency investment portfolio of the Hong Kong authorities to invest primarily in bonds and equity markets of OECD (Organisation for economic cooperation and development) countries. The target allocation is 71% bonds and 29% of the shares. Target currency mix of 91% of the dollar and Hong Kong dollar-denominated assets 9% other assets denomination.
Investment process the exchange Fund is based on the solution of two types of asset allocation: strategic asset allocation and tactical asset allocation. Strategic asset allocation, reflected in the investment benchmark, represents the long-term optimal asset allocation given the investment objectives of the exchange Fund. Guided by the strategic asset allocation tactically allocated in an attempt to achieve excess return over the benchmark. This means that actual distribution often does not coincide with the benchmark, or strategic, allocation.