Hong Kong Future Fund

Hong Kong SAR, China · Asia · Founded 2016 · Savings and future generations fund · Not an IFSWF member

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Focus

Hong Kong Future Fund: what it invests in

TechnologyReal estateInfrastructure and utilitiesFinancial servicesHealthcare and life sciences

Public equitiesFixed incomePrivate equityReal estateInfrastructure

Geography Domestic and global

Scale

Hong Kong Future Fund: how big it is, and on what basis

HK$235.1B

Fund market valueAs of 2026-01-28

In US dollars: about USD 30.2B. HK$235.1B at HK$7.7842 per USD on 2025-12-31

LTGP return since 2009 10.9% IRR (shared private equity and real assets pool)

Transparency

Hong Kong Future Fund: what it publishes

4.0 of 10 Band 2 of 5

Published 3 · Partly 2 · Not published 5

Our 10 item score. It measures what is public, not how well a fund is run.

Placements, end 2025S4: HK$235.1B (about USD 30.2B); As of 2026-01-28
Target mix IP to LTGPS1: 45 : 55 (for 2025); As of 2025-12-31
Composite rate 2024S4: 3.9% (4.8% in 2023); As of 2026-01-28
LTGP return since 2009S1: 10.9% IRR (shared private equity and real assets pool); As of 2025-12-31
FoundedS2: 2016; As of 2025-12-17
Transparency scoreS1: 4.0 of 10; As of 2025-12-31

At a glance. The Future Fund is the long-horizon slice of Hong Kong's Fiscal Reserves, created in 2016 to earn higher returns for future spending needs such as an ageing population. It holds no assets of its own: the money is placed with the HKMA's Exchange Fund and earns a rate tied to public markets and the private equity and real assets of the Long-Term Growth Portfolio. Placements stood at HK$235.1 billion at end 2025. S1 S4 S2

Key points

Placements of HK$235.1 billion (about USD 30.2 billion) at 31 December 2025, down from HK$245.8 billion a year earlier. S4
Return is a composite of two Exchange Fund portfolios; the target mix for 2025 was 45 percent Investment Portfolio and 55 percent Long-Term Growth Portfolio. S1
The composite rate paid to the Future Fund was 3.9 percent for 2024 and 4.8 percent for 2023; the 2025 rate is published once available. S4
The Long-Term Growth Portfolio it shares in held HK$578.4 billion at end 2025 (HK$417.1 billion private equity, HK$161.3 billion real assets) and has returned 10.9 percent a year since 2009. S1
In 2020 a tenth of the fund was set aside as the Hong Kong Growth Portfolio for companies, projects and funds with a Hong Kong link. S2
No separate staff, holdings list or audited accounts: reporting comes through HKMA results releases and annual report. S4 S1

Interesting facts

Its seed money traces back to the Land Fund, which held land sale revenue collected in the twelve years before the 1997 handover. S2
The fund began with a ten year investment horizon ending 31 December 2025, with an option to extend. S2
Unlike other placements, which earn a rate linked to the Investment Portfolio alone, its rate also tracks private equity and real assets. S1

Mandate and goals

The Future Fund exists to secure higher long-term returns on part of the Fiscal Reserves so the government can meet rising future spending. It does this by accepting a more growth-oriented asset mix than ordinary placements with the Exchange Fund. S1 S2

Earn higher returns on part of the Fiscal Reserves than standard placements. S1
Prepare for higher spending linked to an ageing population. S2
Gain exposure to private equity and real assets through the Long-Term Growth Portfolio. S1
Support Hong Kong related growth companies through the Hong Kong Growth Portfolio. S2

How it invests

Industries	Technology, Real estate, Infrastructure and utilities, Financial services, Healthcare and life sciences. Sector agnostic S1 S2
Asset classes	Public equities, Fixed income, Private equity, Real estate, Infrastructure S1
Stages	Public markets, Buyout, Growth, Venture, Real estate, Infrastructure S1 S2
Geography	Domestic and global. Investment Portfolio mainly in OECD bonds and equities with some emerging market and Mainland assets; Growth Portfolio focused on Hong Kong S1 S2
Direct / through funds / co-invest	No / Yes / Not published S1
Managed in house	71 percent S1
Ticket size	The fund does not make or disclose individual deals. S1
Deal sizes seen	Not applicable; returns come through shared Exchange Fund portfolios
External managers	External managers run about 29 percent of Exchange Fund assets, including all listed equity portfolios S1
Co-investment programme	No fund-level co-investment programme is published S1

Published criteria

Hong Kong Growth Portfolio: businesses, projects and funds with a Hong Kong nexus, with a tilt to innovation and technology and no real estate projects. S2
ESG factors are built into Exchange Fund processes; ESG investments get priority where long-term risk-adjusted returns are comparable. S1

Past investments

Year	Investment	Type	Sector	Stage	Amount
2016	Long-Term Growth Portfolio allocation. Share of placements whose return tracks the HKMA private equity and real assets pool. S1	State asset transfer	Real estate	Buyout	55% target mix for 2025
2016	Investment Portfolio allocation. Share of placements whose return tracks Exchange Fund bonds and equities. S1	State asset transfer	Financial services	Public markets	45% target mix for 2025
2020	Hong Kong Growth Portfolio. Carve-out for private investments with a Hong Kong link. S2	State asset transfer	Technology	Growth	10% of the Future Fund
2016	Land Fund balance. Former Land Fund assets moved into the new Future Fund on 1 January 2016. S2	State asset transfer	Financial services	Public markets	Not published

Case studies

Turning the Land Fund into a growth pool S2

What: The government rolled the Land Fund balance into a new Future Fund with a ten year horizon and a higher-return asset mix.
When: January 2016
Size: Not published
Why: To prepare the Fiscal Reserves for rising long-term spending.
Outcome: Placements of HK$235.1 billion at end 2025.

Hong Kong Growth Portfolio S2

What: A tenth of the Future Fund was earmarked for private investments in companies, projects and funds tied to Hong Kong.
When: 2020
Size: 10% of the Future Fund
Why: To back local innovation and technology while seeking market returns.

Linking returns to private markets S1

What: The fund earns a composite rate based on the Investment Portfolio and the Long-Term Growth Portfolio, set at a 45:55 mix for 2025.
When: 2025
Size: Not published
Why: Private equity and real assets give a longer-term return premium.
Outcome: The growth pool has an IRR of 10.9 percent since 2009.

Investment process

The Financial Secretary sets the Exchange Fund benchmark and tracking error limit after consulting the Exchange Fund Advisory Committee (EFAC). The HKMA makes tactical decisions within set ranges. S1

Committee	Role
Exchange Fund Advisory Committee	Advises the Financial Secretary on Exchange Fund policy and benchmark S1

The government sets the target mix between the Investment Portfolio and the Long-Term Growth Portfolio for the Future Fund. S1
Strategic asset allocation, reflected in the benchmark, sets the long-term mix of the Exchange Fund. S1
The HKMA adjusts within allowed ranges through tactical deviations to seek excess return. S1
External managers run listed equities and specialised mandates, about 29 percent of assets. S1
The fee rate is computed from portfolio returns and paid on the placement once each year is closed. S4

How to approach: The fund has no direct deal team or submission process; manager and partner relationships sit with the HKMA. S6

Size and returns

Headline size: HK$235.1B (Fund market value, as of 2026-01-28) S4
In US dollars: about USD 30.2B. HK$235.1B at HK$7.7842 per USD on 2025-12-31
Placements, end 2024: HK$245.8B (Fund market value, as of 2026-01-28) S4
Placements, mid 2025: HK$240.9B (Fund market value, as of 2025-06-30) S5
Exchange Fund total assets, end 2025: HK$4,161.2B (Total assets (balance sheet), as of 2025-12-31) S1
Long-Term Growth Portfolio, end 2025: HK$578.4B (Portfolio value, as of 2025-12-31) S1
Return, 2024: 3.9 percent (composite rate paid on placements; 4.8 percent for 2023) S4
Return, Long-Term Growth Portfolio since 2009: 10.9 percent a year (IRR of the shared portfolio, not the fund) S1

Leadership

Name	Title
Eddie Yue	Chief Executive, Hong Kong Monetary Authority S1

Governance and transparency

Legal basis: Placement of Fiscal Reserves with the Exchange Fund under the Exchange Fund Ordinance S1
Oversight: Financial Secretary, advised by the Exchange Fund Advisory Committee S1
Placement balances appear in the notes to the Exchange Fund balance sheet each half year. S4
The annual report chapter on reserves management explains the composite rate and the target mix. S1

Transparency score: 4.0 of 10 (band 2 of 5). Our own 10-item rubric; see the methodology page.

Published: total assets, annual return, asset allocation. S1 S4
Partly published: governance and mandate documents, regular reporting schedule. S1 S5
Not published: long-term returns, geographic or sector split, holdings or deal list, audited financial statements, named leadership. S1 S4

History

Date	Event
1986	Land Fund set up to hold land sale revenue. S2
1997-07-01	Land Fund managed within the Investment Portfolio. S2
2009	Long-Term Growth Portfolio launched. S1
2016-01-01	Future Fund established from the Land Fund balance. S2
2020	Hong Kong Growth Portfolio created with 10 percent of the fund. S2
2024-12-31	Placements of HK$245.8 billion. S4
2025-12-31	End of the initial ten year horizon, with an option to extend. S2
2026-01-28	Year-end 2025 placements of HK$235.1 billion reported. S4

For family offices

The Future Fund does not invest alongside private or family capital directly. Managers and partners deal with the HKMA, which runs the underlying portfolios. S1

Asset managers can work with the HKMA, which hires external managers for listed equities and specialised asset classes. S1
Hong Kong linked ventures and funds fall under the Hong Kong Growth Portfolio remit. S2

Reports

Exchange Fund results for 2025: https://www.hkma.gov.hk/media/eng/doc/key-information/press-release/2026/20260128e3a4.pdf S4
Exchange Fund interim results 2025: https://www.hkma.gov.hk/media/eng/doc/key-information/press-release/2025/20250731e9a1.pdf S5
HKMA Annual Report 2025, Reserves Management: https://www.hkma.gov.hk/media/eng/publication-and-research/annual-report/2025/17_Reserves_Management.pdf S1

Common questions

How big is the Hong Kong Future Fund?

Placements with the Exchange Fund were HK$235.1 billion, about USD 30.2 billion, at 31 December 2025. S4

Who manages it?

The HKMA, as part of the Exchange Fund. The fund has no separate team. S1

What return does it earn?

A composite rate linked to the Investment Portfolio and Long-Term Growth Portfolio: 3.9 percent for 2024 and 4.8 percent for 2023. S4

What is the Hong Kong Growth Portfolio?

A carve-out of 10 percent of the Future Fund, created in 2020, for investments with a Hong Kong link. S2

Is it an IFSWF member?

No. S3

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All sovereign wealth funds in Asia · All savings and future generations funds · All funds in Hong Kong SAR, China

Sources

Disclaimer

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