Hong Kong's exchange fund gains $61b investment income

Total assets now hit $3.63tr.

The Exchange Fund recorded an investment income of $61 billion last year with a return of 1.8%, the Monetary Authority announced today.

The fund's total assets stood at $3.63 trillion at the end of 2016, up by $207 billion on the previous year.

Looking ahead,the government said the investment environment will not become easier in 2007 with a new US administration, formal trigger of Brexit and elections in major European countries.

"In addition, the pace of US interest rate normalisation is still highly uncertain, and will affect global fund flows, exchange rates and asset markets," Norman Chan, chief executive of the Monetary Authority, said.

He added the authority will adopt prudent and proactive strategies in the face of the complex and difficult investment environment.

"We will continue to manage the Exchange Fund prudently, and to quicken the pace of asset diversification, in particular through the Long-Term Growth Portfolio.”