1 / 12

2008 Exchange Fund Results

2008 Exchange Fund Results. Press Conference 21 January 2009. Investment Objectives of The Exchange Fund. Investment objectives of the Exchange Fund: (1) to preserve capital;

Faraday
Télécharger la présentation

2008 Exchange Fund Results

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2008 Exchange Fund Results Press Conference 21 January 2009

  2. Investment Objectives ofThe Exchange Fund Investment objectives of the Exchange Fund: (1) to preserve capital; (2) to ensure that the entire Monetary Base at all times will be fully backed by highly liquid US dollar denominated assets; (3) to ensure sufficient liquidity for the purpose of maintaining monetary and financial stability; and (4) subject to (1) – (3), to achieve an investment return that will preserve the long-term purchasing power of the Fund.

  3. Markets in 2008 • Exchange rates: • US dollar strengthened sharply in the second half of 2008 against euro but weakened against yen • Equity markets: • Major markets experienced one of the worst slumps in history • Major indices dropped around 30-50% • Interest rates: • Aggressive easing by major central banks • Capital seeking safe haven flooded to sovereign bond markets • Government bond yields reached historical lows in the fourth quarter of 2008

  4. Investment Income * Unaudited figures ^ Including dividends # Including interest @ Excluding valuation changes in Strategic Portfolio

  5. Change in Investment Income, Payment to Treasuryand Accumulated Surplus # The fixed rate of fee payment to Treasury for 2008 is 9.4% and 7% (w.e.f. 1 April 2007) for 2007. ^ Including dividends

  6. Historical Change in Investment Income, Payment to Treasury and Accumulated Surplus * Unaudited figures ^ Including dividends

  7. Exchange FundAbridged Balance Sheet

  8. Investment Returnof the Exchange Fund Compounded Annual Investment Return (1994-2008) Compounded Annual Hong Kong CPI-A (1994-2008#) # Hong Kong CPI-A at end-November 2008

  9. Exchange Fund Performance Against Investment Benchmark

  10. Payment to Treasury Against Estimate

  11. Outlook for 2009 Outlook for global financial markets remains cautious: • effectiveness of monetary easing policy and huge stimulus packages by major central banks and governments to restore confidence in their respective economies is yet to ascertain • significant decline in corporate profits and consumption • potential overhang from the de-leveraging bank balance sheets and further write-downs of toxic assets

  12. 2008 Exchange Fund Results Press Conference 21 January 2009

More Related