Hong Kong Jockey Club seeks higher returns from alternative investments
Alternative investments, including property, hedge funds and private equity, account for HK$5b of its HK$8b in long-term investments
The Hong Kong Jockey Club says it increased its alternative investments last year, seeking to achieve better returns than traditional investments in bonds and equities.
The organisation, whose after-tax income is mainly put into a charitable trust, increased its investment in alternative assets, including hedge funds, private equity funds and property, it said in its annual report. Alternative investments accounted for HK$5.02 billion of its HK$8.24 billion long-term investment portfolio at the end of June, up 24.29 per cent from HK$4.04 billion at the same time last year.
In comparison, its bond investments rose only 3.66 per cent to HK$1.7 billion while equity investments increased by 6.21 per cent to HK$1.01 billion.
The non-profit-making organisation operates horse racing, football betting and the Mark Six Lottery in the city.
Jockey Club steward Eric Li Ka-cheung said yesterday the increase in alternative investment was aimed at achieving a better return than traditional investments in bonds and stocks.
"We have purchased properties for some time already," he said. "The Jockey Club also has increased other types of alternative investments to diversify our portfolio from traditional bonds and equities investment. This helps diversify the risks and bring in better returns," he said.