January 28, 2014 / 5:31 AM / in 4 years

UPDATE 1-China's chief forex reserves manager to leave his post - sources

(Adds attempts to reach SAFE for comment)

HONG KONG, Jan 28 (Reuters) - The fund manager in charge of investing the Chinese government’s foreign exchange reserves, who helped diversify its foreign asset portfolio away from U.S. Treasury bonds, is leaving his position, three sources told Reuters on Tuesday.

Zhu Changhong, chief investment officer at the State Administration of Foreign Exchange (SAFE), was widely viewed as a highly talented portfolio manager when the agency hired him away from Pimco, the world’s largest bond fund manager, in 2010.

After taking over managing China’s forex reserves, which reached $3.82 trillion at end-2013, Zhu reduced the ratio devoted to U.S. Treasury securities, while increasing the share of U.S. corporate bonds, stocks, and real estate, as well as Japanese stocks and bonds.

“I‘m not clear yet why he resigned or whether the team he brought with him to SAFE will leave as well,” said a source familiar with the situation, who requested anonymity because the resignation is not yet public.

Zhu, 44, was known for his low-key style, which earned him the nickname “Invisible Man.” He holds a Ph.D. in physics from the University of Chicago and worked at Bank of America before joining Pimco in 1999.

SAFE officials were not immediately available for comment. (Reporting by Bi Xiaowen; Writing by Gabriel Wildau; Editing by Jacqueline Wong)

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