The Hong Kong Monetary Authority published the unaudited financial position of the Exchange Fund at end-December 2024, reporting investment income of HK$219.0 billion for 2024 and an overall investment return of 5.3%. Total assets increased by HK$65.9 billion over the year to HK$4,082.4 billion, while accumulated surplus stood at HK$731.6 billion. Investment income was driven mainly by gains on bonds of HK$135.6 billion, gains on Hong Kong equities of HK$21.8 billion and gains on other equities of HK$68.7 billion, partly offset by a negative currency translation effect of HK$35.6 billion on non-Hong Kong dollar assets. Gains on other investments were HK$28.5 billion, based on end-September 2024 valuations for investments held by subsidiaries. Fees on placements by the Fiscal Reserves and by HKSAR Government funds and statutory bodies were HK$13.2 billion and HK$15.7 billion respectively, with a 2024 fee payment rate of 3.7%. By portfolio, the Investment Portfolio returned 7.2% and the Backing Portfolio 4.1%, while the Long-Term Growth Portfolio recorded an annualised internal rate of return of 11.5% since inception in 2009 up to end-September 2024. The HKMA indicated that the 2024 return figure excludes the Strategic Portfolio and only includes Long-Term Growth Portfolio performance up to end-September 2024, with the audited full-year return to be disclosed in the Exchange Fund’s 2024 annual report. The 2024 fee payment to the Future Fund will be disclosed when the 2024 composite rate is available.

Original source View in tracker