CONFIDENTIAL
- 48
EXCHANGE FUND INVESTMENT POLICY
Appendix I
At a meeting of the Exchange Fund Advisory Committee held
on 6 November 1987, members approved the following investment policy:
Objectives
1.
The main objectives are as follows:
(a)
to maintain sufficient liquidity to
(b)
(c)
provide adequate cash for the
redemption of certificates of
indebtedness and debt certificates and
to provide funds for regulating the
exchange value of the Hong Kong dollar;
to obtain the maximum investment
return available and to provide
concomitant investment safety;
to safeguard the Hong Kong dollar value of the Fund's foreign currency
assets.
Distribution
2.
of assets
As a general guideline, the currency spread of assets not denominated in Hong Kong dollars
should be:
U.S. dollars
Gold
40 65%
2-1/2%
Other currencies
balance
CONFIDENTIAL