The Exchange Fund recorded its second highest-ever investment income of $247.2 billion last year, with an investment return of 6.2%, the Monetary Authority announced today.

While reporting the fund’s investment results, Monetary Authority Chief Executive Eddie Yue said global financial markets were clouded by the slowdown of global economic growth and US-China trade tensions last year.

However, accommodative monetary policies by major central banks lent support to the equity and bond markets. With such a favourable environment, the fund achieved a decent return on equity and bond investments.

Total assets of the fund increased $204.2 billion from end of 2018 to $4.2591 trillion at the end of 2019.

Mr Yue noted the fee payable to fiscal reserves was $29.4 billion, while the fees for placement by government funds and statutory bodies totalled $9 billion in 2019.

Looking ahead, the investment environment in 2020 will remain challenging, he explained.

“With the signing of the first phase of the US-China trade deal, market uncertainties have somewhat subsided. And there are also some initial signs of stabilisation in the global economy.

“However, potential risks remain, including for example, the progress of the next phase of the US-China trade talks, the implementation of Brexit, and also the evolving situation in the Middle East. And these can all potentially affect market sentiment.”

The authority will continue to manage the fund prudently and further diversify investments to seek higher long-term returns for the fund, he added.

Click here for the results.