SovereignWealthFunds.comHong Kong Monetary Authority Exchange Fund
Hong Kong Monetary Authority Exchange Fund: what it invests in
Geography Global
Hong Kong Monetary Authority Exchange Fund: how big it is, and on what basis
In US dollars: about USD 572B. Converted at about HKD 7.8 per US dollar, inside the linked exchange rate band.
Return 2025 8.0%
Hong Kong Monetary Authority Exchange Fund: what it publishes
Published 7 · Partly 2 · Not published 1
Our 10 item score. It measures what is public, not how well a fund is run.
At a glance. The Exchange Fund holds Hong Kong's official reserves and backs the Hong Kong dollar. The HKMA manages it for the Financial Secretary. Total assets were HKD 4,463.6 billion at 30 June 2026, about USD 572 billion. Most of it sits in liquid US dollar assets, while a Long-Term Growth Portfolio of HKD 578.4 billion invests in private equity and real assets through external general partners. S3 S1
Key points
- Returned 8.0 percent in 2025, with investment income of HKD 337.4 billion; the average since 1994 is 4.6 percent a year. S1
- Four portfolios: Backing (fully backs the Monetary Base in US dollar assets), Investment (listed bonds and equities), Long-Term Growth (private equity and real assets) and Strategic (HKEX shares). S1
- About 71 percent of assets is run in house and about 29 percent by external managers, including all listed equity portfolios. S1
- The Long-Term Growth Portfolio held HKD 578.4 billion at end 2025 (private equity HKD 417.1 billion, real assets HKD 161.3 billion) with HKD 296.4 billion of commitments outstanding. S1
- Its private markets book has earned an internal rate of return of 10.9 percent since 2009. S1
- By currency at end 2025: US dollar 79.5 percent, Hong Kong dollar 5.8 percent, others 14.7 percent. S1
- First half 2026 investment income was HKD 134.7 billion, and total assets rose by HKD 302.4 billion in six months. S3
Interesting facts
- The Fund dates from 1935, when it was set up to back the banknotes issued in Hong Kong. S1
- It pays the Government a fee on fiscal reserve placements; the 2026 fee rate is 4.8 percent, worth HKD 10.9 billion in the first half. S3
- Its Strategic Portfolio holds shares in Hong Kong Exchanges and Clearing that the Government bought for the Fund, and is left out of return figures. S1
Mandate and goals
The main objective under the Exchange Fund Ordinance is to support the exchange value of the Hong Kong dollar; the Fund may also be used for the stability and integrity of the monetary and financial systems. S1
- Preserve capital before anything else. S1
- Keep the whole Monetary Base fully backed at all times by highly liquid US dollar assets. S1
- Hold enough liquidity to keep the monetary and financial systems stable. S1
- Subject to the above, earn returns that keep the long-term purchasing power of the Fund. S1
- Return target: No numeric target; the HKMA puts capital preservation first while seeking long-term growth. S3
How it invests
| Industries | Technology, Healthcare and life sciences, Energy: oil and gas, Real estate, Infrastructure and utilities, Financial services. Sector agnostic S6 |
|---|---|
| Asset classes | Fixed income, Public equities, Private equity, Real estate, Infrastructure, Strategic state holdings, Cash and money markets S1 |
| Stages | Public markets, Buyout, Growth, Real estate, Infrastructure S1 S6 |
| Geography | Global. Mainly OECD bond and equity markets with some emerging market and Mainland exposure; private assets mostly North America and Western Europe S1 S6 |
| Direct / through funds / co-invest | Yes / Yes / Not published S1 S6 |
| Managed in house | 71 percent S1 S6 |
| Ticket size | No ticket size is published; private assets are reached through fund commitments. S1 |
| External managers | About 29 percent of assets with external managers; the HKMA picks private markets GPs on consistent track record and keeps control of allocation and risk S1 S6 |
| Co-investment programme | No co-investment programme is published; GPs source and monitor the private deals S6 |
Past investments
| Year | Investment | Type | Sector | Stage | Amount |
|---|---|---|---|---|---|
| 2025 | Long-Term Growth Portfolio. Private equity HKD 417.1B and real assets HKD 161.3B, with HKD 296.4B committed but not drawn. S1 | Fund commitment | Multi-sector | Buyout | HKD 578.4B (market value) |
| 2020 | Hong Kong Growth Portfolio. Invests in companies, projects and funds with a Hong Kong link, excluding real estate. S7 | Fund commitment | Multi-sector | Growth | About 10 percent of the Future Fund |
| 2007 | Hong Kong Exchanges and Clearing (HKEX). Shares bought by the Government for the Fund and held in the Strategic Portfolio; valuation gain of HKD 9.7B in 2025. S1 | State asset transfer | Financial services | Public markets | Not published |
| 2009 | First alternative investment. First private equity commitment, made in early 2009 when the growth portfolio was formed. S6 | Fund commitment | Multi-sector | Buyout | Not published |
Case studies
Building a private markets book from 2009 S6 S1
- What: The HKMA set up the Long-Term Growth Portfolio to hold private equity and real estate through external general partners.
- When: 2009 to 2025
- Size: HKD 578.4B at end 2025
- Why: To add long-term return to a conservative reserve fund while accepting low liquidity and J-curve effects.
- Outcome: Internal rate of return of 10.9 percent a year since 2009.
Future Fund and the Hong Kong Growth Portfolio S7 S1
- What: The Government placed the Future Fund with the Exchange Fund, linking its return to the Investment and Long-Term Growth Portfolios, and later carved out 10 percent for Hong Kong-linked deals.
- When: 2016 and 2020
- Size: Not published
- Why: To seek higher long-term returns on fiscal reserves and to back companies and funds with a Hong Kong nexus.
- Outcome: The target mix for 2025 was 45 percent Investment Portfolio and 55 percent Long-Term Growth Portfolio.
Investment process
The Financial Secretary controls the Fund, advised by the Exchange Fund Advisory Committee, which sets the investment objectives and benchmark. The HKMA Chief Executive, as Monetary Authority, runs it through the Exchange Fund Investment Office. S1 S4
| Committee | Role |
|---|---|
| Exchange Fund Advisory Committee | Advises the Financial Secretary on investment policy and objectives S1 |
| EFAC Audit Sub-Committee | Oversees financial reporting and audit S5 |
- The advisory committee sets objectives, portfolio structure and benchmarks. S1
- The Backing Portfolio holds US dollar assets matching the Monetary Base; the rest goes to the Investment and Long-Term Growth Portfolios. S1
- For private assets the HKMA vets managers, sets allocations and risk limits; GPs source and monitor deals. S6
- Results are released quarterly and audited each year by the Director of Audit. S3 S5
How to approach: No open intake route is published. External managers are chosen by the Exchange Fund Investment Office, mainly on track record; the HKMA website lists general contacts. S1 S6
Size and returns
- Headline size: HKD 4,463.6B (Total assets (balance sheet), as of 2026-06-30) S3
- In US dollars: about USD 572B. Converted at about HKD 7.8 per US dollar, inside the linked exchange rate band.
- Total assets, audited, Fund only: HKD 4,161.2B (31 December 2025) (Total assets (balance sheet), as of 2025-12-31) S5
- Total assets, audited, group: HKD 4,719.7B (31 December 2025) (Total assets (balance sheet), as of 2025-12-31) S5
- Accumulated surplus: HKD 862.7B (30 June 2026) (Net assets or equity, as of 2026-07-28) S3
- Long-Term Growth Portfolio: HKD 578.4B (end 2025) (Portfolio value, as of 2025-12-31) S1
- Return, 2025: 8.0 percent (excluding the Strategic Portfolio) S1
- Return, 3 years to 2025: 6.2 percent a year S1
- Return, 5 years to 2025: 3.6 percent a year S1
- Return, 10 years to 2025: 3.9 percent a year S1
- Return, since 1994: 4.6 percent a year (compounded) S1
- Return, Long-Term Growth Portfolio since 2009: 10.9 percent a year (internal rate of return, Long-Term Growth Portfolio only) S1
- Size over time (HKD billion): 2024 4,081.0, 2025 4,161.2, 2026-06 4,463.6 S3 S5
Leadership
| Name | Title |
|---|---|
| Eddie Yue | Chief Executive, Hong Kong Monetary Authority S4 |
| Howard Lee | Chief Executive Officer, Exchange Fund Investment Office S4 |
| Alan Au | Deputy Chief Executive Officer, Exchange Fund Investment Office S4 |
| Albert Goh | Chief Risk Officer, Exchange Fund Investment Office S4 |
| Joe Cheung | Chief Investment Officer (Asset Allocation) S4 |
| Frances Lee | Chief Investment Officer (Public Markets) S4 |
| Kenneth Ho | Chief Investment Officer (External Managers) S4 |
| Samson Wong | Chief Investment Officer (Private Markets) S4 |
Governance and transparency
- Legal basis: Currency Ordinance of 1935 and the Exchange Fund Ordinance S1
- Oversight: Financial Secretary, advised by the Exchange Fund Advisory Committee S1
- Auditor: Director of Audit, Audit Commission, reporting to the Financial Secretary S5
- Not an IFSWF member. S2
- Audited statements cover the Fund and its subsidiaries, with fair value as a key audit matter. S5
Transparency score: 8.0 of 10 (band 4 of 5). Our own 10-item rubric; see the methodology page.
History
| Date | Event |
|---|---|
| 1935 | Currency Ordinance creates the Exchange Fund. S6 S7 |
| 1993 | Hong Kong Monetary Authority established. S7 |
| 1994 | Return series begins. S1 |
| 1998 | Backing and Investment Portfolios formed. S7 |
| 2007 | Strategic Portfolio set up to hold HKEX shares. S1 |
| 2009 | Long-Term Growth Portfolio created; first alternative investment made. S6 |
| 2016 | Future Fund created and placed with the Exchange Fund. S7 |
| 2020 | Hong Kong Growth Portfolio launched. S7 |
| 2025 | Return of 8.0 percent and investment income of HKD 337.4B. S1 |
| 2026-07-28 | Total assets reach HKD 4,463.6B at end June. S3 |
For family offices
The Exchange Fund has no programme for outside investors. Private markets money goes out through external general partners, so families most often meet it as fellow LPs in the same funds. S6 S1
Reports
- HKMA Annual Report 2025, Reserves Management: https://www.hkma.gov.hk/media/eng/publication-and-research/annual-report/2025/17_Reserves_Management.pdf S1
- Exchange Fund audited financial statements 2025: https://www.hkma.gov.hk/media/eng/publication-and-research/annual-report/2025/19_The_Exchange_Fund.pdf S5
- Exchange Fund position at end of June 2026: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2026/07/20260728-4/ S3
Common questions
How big is the Exchange Fund?
HKD 4,463.6 billion of total assets at 30 June 2026, about USD 572 billion. S3
What did it return in 2025?
8.0 percent, excluding the Strategic Portfolio. The average since 1994 is 4.6 percent a year. S1
How much is in private markets?
HKD 578.4 billion in the Long-Term Growth Portfolio at end 2025, with a 10.9 percent internal rate of return since 2009. S1
Who manages it?
The HKMA, led by Chief Executive Eddie Yue, through the Exchange Fund Investment Office headed by Howard Lee. S4
Where is the money invested?
Mostly in US dollar assets, 79.5 percent by currency at end 2025. S1
Related profiles
- China Investment Corporation China · USD 1,567B
- GIC Private Limited Singapore · About USD 1.16T, estimate
- SAFE Investment Company China · About USD 1T, estimate
- Korea Investment Corporation South Korea · USD 232.0B
- National Investment Corporation of the National Bank of Kazakhstan Kazakhstan · USD 3.4B
- Government Pension Investment Fund (GPIF) Japan · JPY 293.6T
All sovereign wealth funds in Asia · All reserve investment corporations · All funds in Hong Kong SAR, China
Sources
- S1HKMA, Annual Report 2025, Reserves Management chapter
- S2IFSWF, members list
- S3HKMA, Exchange Fund position at end of June 2026, press release
- S4HKMA, Exchange Fund Investment Office organisation chart (27 July 2026)
- S5HKMA, Annual Report 2025, Exchange Fund audited financial statements
- S6HKMA inSight, Eddie Yue on the Long-Term Growth Portfolio, 14 December 2015
- S7Wikipedia, Exchange Fund (Hong Kong)
Disclaimer
Informational only. SovereignWealthFunds.com is an independent public-source reference. It is not affiliated with or endorsed by any fund named on it, and it is not investment, legal or tax advice. Figures are as of the dates shown next to them and may have changed; please read each fund's official pages, linked on its profile. To report an error, use the contact page. Copyright SovereignWealthFunds.com. All rights reserved.
