Hong Kong Monetary Authority Investment Portfolio - HKMA

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DEFINITION of 'Hong Kong Monetary Authority Investment Portfolio - HKMA'

A sovereign wealth fund of the Government of the Hong Kong Special Administrative Region. The Investment Portfolio is only one of two portfolios in the HKMA's Exchange Fund. The Exchange Fund also manages a Backing Portfolio supporting the operations of the Hong Kong Currency Board. Since the Backing Portfolio is invested only in highly liquid U.S. government securities, it is generally not considered as part of the sovereign wealth fund. According to the Sovereign Wealth Fund Institute, the Investment Portfolio controls $139.7 billion in assets as of March 2010 and is the 10th largest sovereign wealth fund in the world.

BREAKING DOWN 'Hong Kong Monetary Authority Investment Portfolio - HKMA'

A majority of the Exchange Fund assets are managed internally. All of the Backing Fund is managed internally, and some of the Investment Portfolio is as well. However, the Exchange Fund employs external managers for its equity portfolios and other specialized investments. The investment benchmark for the Exchange Fund consists of 75% bonds and 25% equities.

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RELATED FAQS
  1. How autonomous are special administrative regions?

    When most people think of special administrative regions, or SARs, they are referring to Hong Kong and its relationship with ... Read Full Answer >>
  2. What is the difference between a greenfield investment and a regular investment?

    A greenfield investment is a particular type of investment where an international company begins a new operation in a foreign ... Read Full Answer >>
  3. Can a special administrative region declare autonomy?

    Special administrative regions, or SARs, namely Hong Kong and Macau, do not declare autonomy so much as they are granted ... Read Full Answer >>
  4. What countries are currently considered to be special administrative regions?

    The two countries, both under the overall sovereignty of the People's Republic of China, designated as special administrative ... Read Full Answer >>
  5. What are the benefits for a company investing in a greenfield investment?

    Advantages of greenfield investments include increased control, the ability to form marketing partnerships and the avoidance ... Read Full Answer >>
  6. Why did China designated certain territories as special administrative regions?

    The primary reason for the People's Republic of China designating two territories as special administrative regions, or SARs, ... Read Full Answer >>

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