Hong Kong Monetary Authority Investment Portfolio - HKMA

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Revenue Equalization Reserve Fund

    A sovereign wealth fund established on the Pacific island of ...
  2. Sovereign Credit Rating

    The credit rating of a country or sovereign entity. Sovereign ...
  3. Sovereign Wealth Fund - SWF

    Pools of money derived from a country's reserves, which are set ...
  4. Central Bank

    The entity responsible for overseeing the monetary system for ...
  5. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
  6. Reserve Currency

    A foreign currency held by central banks and other major financial ...
Related Articles
  1. Majority of Sovereign Wealth Funds are located in the Middle East.
    Investing Basics

    Sovereign Wealth Funds - Friend Or Foe?

    With $5.86 trillion in assets as of September 2013, SWFs have a great deal of clout in financial markets. But as the majority of SWFs are located in the Middle East and Asia, whether these largely ...
  2. Fundamental Analysis

    Institutional Investors And Fundamentals: What's The Link?

    Big-money sponsorship might make a company look good, but it's not always a reliable gauge of stock quality.
  3. Mutual Funds & ETFs

    An Introduction To Sovereign Wealth Funds

    Countries use sovereign wealth funds to stabilize their economies, but these investments can lack transparency.
  4. Mutual Funds & ETFs

    Build Your Portfolio With Infrastructure Investments

    Mutual funds devoted to keeping roads, structures and communities safe can make you money.
  5. Options & Futures

    Keeping An Eye On The Activities Of Insiders And Institutions

    These transactions reveal much about a stock. We go over what to consider and where to find it.
  6. Investing Basics

    Hong Kong Vs. China: Understand The Differences

    The century-long separation between mainland China and Hong Kong created political and economic gaps which cannot be easily bridged even if the two are officially one country.
  7. Economics

    Profiting From China's Breakout: The Right Funds

    China's prospects for growth, and for rewarding investments, can't be debated. Here are some worthwhile funds to invest in, and the smart way of doing it.
  8. A special administrative region is unique to The People’s Republic of China.
    Markets

    How a Special Administrative Region Works

    A special administrative region is unique to The People’s Republic of China. These regions are created by the central government in China to allow certain areas to operate with a high degree ...
  9. What's a Multinational Corporation?
    Investing

    What's a Multinational Corporation?

    A multinational corporation is just that – a corporation that operates in multiple nations, with a home office that coordinates global management. Being a multinational corporation is a complicated ...
  10. Although several may try to describe the U.S. stock market as “fairly priced,” value-oriented investors recognize the lofty premium for what it is.
    Stock Analysis

    Where Are Foreing Markets Compared To U.S. Stocks?

    Although several may try to describe the U.S. stock market as “fairly priced,” value-oriented investors recognize the lofty premium for what it is.

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center