Exchange Fund gains $126.5b in 1H17

Total assets now stand at $3.9t.

The Exchange Fund recorded an investment income of $126.5 billion in the first half of this year, the Monetary Authority announced.

The fund’s total assets stood at $3.9049 trillion at the end of June, up by $286.2 billion compared with the end of last year.

The authority’s Chief Executive Norman Chan said the positive trend of global financial markets in the first half of the year may not be sustainable.

"The investment environment in the second half of the year is still fraught with uncertainties, including the pace of the US interest rate normalisation and the timing of commencement of the Federal Reserve's balance sheet reduction, as well as the prospect of any reversal in the accommodative monetary policies of other major central banks."

Mr Chan said other uncertainties affecting market sentiments include the various economic stimulus measures proposed by the US administration and the negotiations on the UK's intended withdrawal from the European Union.

"The HKMA will continue to manage the Exchange Fund prudently through appropriate defensive measures and investment diversification including increased investments under the Long-Term Growth Portfolio, with a view to achieving better returns for the Exchange Fund in the long run within acceptable risk levels."