The Exchange Fund recorded an investment loss of $18.3 billion last year with a negative return of 0.6%, the Monetary Authority announced today.
Total assets stood at $3.4 trillion at the end of 2015, up by $279.9 billion on the previous year.
The authority's Chief Executive Norman Chan said the 0.6% negative return was relatively mild compared with major market indices.
In anticipation of a worsening investment environment, the authority has deployed defensive moves over the past two years, including quickening the pace of diversifying investment, especially under the Long-Term Growth Portfolio, he said.
The moves have enhanced the resilience of the Exchange Fund and helped mitigate some potential losses, he added.
Facing an even more complex and difficult investment environment ahead, he said the authority will continue prudent management of the Exchange Fund and respond to market changes.