Assets Under Management Quadruple Since Inception with Footprint Expanded to the mainland, Thailand and the Middle East
HONG KONG, Nov. 12, 2024 /PRNewswire/ -- The Tracker Fund of Hong Kong ('TraHK'), the first exchange-traded fund ('ETF') in the city, celebrated its 25th anniversary today (12 November 2024). Over 100 heavyweights gathered together to commemorate this milestone, together with the Honourable Paul Chan Mo-po, Financial Secretary of the Government of the Hong Kong Special Administrative Region; George Hongchoy, Chairman of the Supervisory Committee of TraHK; Diana Cesar, Executive Director and Chief Executive of Hang Seng Bank; and Rosita Lee, Director and Chief Executive Officer of Hang Seng Investment Management Limited ('Hang Seng Investment').
The Honourable Paul Chan Mo-po, Financial Secretary of the Government of the Hong Kong Special Administrative Region (second to left); George Hongchoy, Chairman of the Supervisory Committee of TraHK (second to right); Diana Cesar, Executive Director and Chief Executive of Hang Seng Bank (far right); and Rosita Lee, Director and Chief Executive Officer of Hang Seng Investment Management Limited (far left) together celebrate the 25th anniversary of the Tracker Fund of Hong Kong.
Since its inception in 1999, TraHK has grown into a symbol of Hong Kong's financial strength and development, reflecting the city's dynamic evolution as a leading international financial hub. As of 2 October 2024, assets under management ('AUM') reached a record high of HKD 178 billion, representing a fourfold increase since its launch. TraHK has provided both retail and institutional investors from across the world with efficient access to Hong Kong's stock market. Additionally, TraHK plays an instrumental role in fostering benefits for all stakeholders within the ecosystem. It acts as a value creator by enhancing market liquidity, promoting transparency, and supporting the overall stability of Hong Kong stock market.
Speaking at the ceremony,the Honourable Paul Chan Mo-po, Financial Secretary of the Government of the Hong Kong Special Administrative Region, said: "Over the past 25 years, along with Hong Kong and our capital market, the Tracker Fund has demonstrated incredible resilience in navigating multiple challenges. It has earned the trust of local, Mainland and international investors seeking exposure to Hang Seng Index constituent stocks. It offers investors a simple way to invest in a diversified portfolio of Hong Kong stocks, mitigating the risk of excessive concentration in a very cost-effective manner."
George Hongchoy, Chairman of the Supervisory Committee of TraHK, said: "The TraHK's growth and position as the market's largest ETF in terms of AUM in tracking the performance of the Hang Seng Index is a testament to Hong Kong's continuing success story as a global centre of finance, business and entrepreneurship. Hang Seng Investment's strong local roots, close ties to the community and deep experience in the industry make them the ideal fund manager of this fund."
Diana Cesar, Executive Director and Chief Executive of Hang Seng Bank, said: "TraHK is ranked 1st amongst all Hong Kong stocks in terms of total turnover year to date as of 31 October 2024, a clear reflection of its significance in the market and more importantly, investor confidence. We are expanding Hong Kong's capital market into new regions. During the last two years, there is a very strong connection between the values of the TraHK and the Hang Seng Bank. The financial stability of Hong Kong, prosperity of the market and opportunities for wealth generation for individuals are clearly at the heart of the fabric of Hong Kong and its success. Looking to the future, Hang Seng Investment will further expand the fund's global reach, attract more foreign investments and share with the world Hong Kong's energy and dynamism."
Leveraging Hong Kong's unique position as a super connector between the mainland and the world, TraHK has been broadening its investor base with increased accessibility across different key markets. It has become available to the mainland investors via the inclusion of Stock Connect and the introduction of RMB Counter in 2022, enhancing cross-boundary capital circulation and Hong Kong's position as a global offshore RMB business hub.
Last year, the first Depositary Receipt (DR) investing in the TraHK was listed on the Stock Exchange of Thailand, expanding its accessibility to overseas investors. Last month, the SAB Invest Hang Seng Hong Kong ETF was launched on the Saudi Exchange (Tadawul) – a feeder ETF that fully invests in TraHK, providing Middle Eastern investors with a unique entry point into Hong Kong's capital markets.
Rosita Lee, Director and Chief Executive Officer of Hang Seng Investment, said: "Since taking on the management of TraHK, our focus has been on expanding its global reach, from introducing new investment channels in the mainland and across Asia to launching products in the Middle East, facilitating capital allocation into the Hong Kong's stock market. Hang Seng Investment remains committed to promote proactively our Hong Kong story by further expanding TraHK's global reach through exploring new markets and enhancing accessibility. Together, we support the overall growth of the Hong Kong economy."
With a strong foundation and a clear strategy for future growth, TraHK is well-positioned to build on this legacy and continue to be a cornerstone of Hong Kong's financial landscape.