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The following is issued on behalf of the Housing Authority:
The Housing Authority's (HA) Finance Committee (FC) today (April 21) endorsed detailed arrangements for taking forward the first phase of its investment strategy.
Based on prudent financial principle, the HA's investment strategy aims at enhancing return through diversification without increasing the overall level of risk.
Under the first phase, around 45 per cent of HA's fund will be invested in the global bond. After taking forward the first phase of the investment in global bond, the Authority will review further on how to diversify another 25 per cent of its fund into global equity.
Before the appointment of fund managers, the HA's fund will be temporarily placed with various major banks under short-term deposits, a spokesman for the Authority said.
"The review of its future investment strategy is one of the initiatives of the HA to utilise its available resources to maintain the long term sustainability of its public housing programme," the spokesman said.
Under the Housing Ordinance, approval of the Financial Secretary will be sought for any new investment types.
In June last year, members of the FC reached general consensus on HA's future investment strategy after considering the findings and recommendations of the investment consultant.
The Committee also endorsed the appointment of six global bond fund managers following a selection process by the three-member Ad Hoc Group on the Review of HA's Investment Strategy.
However, final approval has to be sought from the Housing Department Tender Board. "If things go smoothly, it is estimated that the appointments can be made in the middle of this year," the spokesman said.
At today's meeting, the Committee also approved the setting up of a Funds Management Sub-committee under the FC to effectively monitor fund managers and to conduct regular review of HA's investment strategy.
Ends/Friday, April 21, 2006
Issued at HKT 12:27
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