The $534 billion Exchange Fund will be managed less conservatively after the handover in a bid to achieve higher returns, Financial Secretary Sir Donald Tsang Yam-kuen says. He said the fund could tolerate a greater risk profile once political uncertainty associated with the transition had passed. He said the investment strategy of the $150 billion Land Fund would remain untouched in the short term, but said the Land Fund had outperformed the Exchange Fund as it was managed more aggressively. Sir Donald said the performance of the Exchange Fund could match that of the Land Fund if a more pro-active investment strategy was adopted. It is understood the Exchange Fund will invest more heavily in listed securities and other equities after the handover, in line with the Land Fund. The Land Fund will be managed by the Hong Kong Monetary Authority - under the direction of Sir Donald - and will be kept separate from the Exchange Fund. Sir Donald gave a forceful reminder to those who have suggested Hong Kong's reserves will be used to finance infrastructure projects in China that the funds belong to Hong Kong. 'This is our money and legislative approval would be required to move funds outside the territory,' he said.