Tracker Fund names Hang Seng to run Hong Kong’s biggest exchange-traded fund, ending State Street’s mandate
- A seven-member supervisory committee chaired by George Hongchoy Kwok-lung named Hang Seng as the winner of a tender to manage TraHK
- State Street remains the trustee of TraHK, even if Hang Seng has the mandate to run it
Hong Kong has picked Hang Seng Investment Management to manage the Tracker Fund (TraHK), ending a two-decade mandate by State Street Global Advisors that threw the city’s biggest exchange-traded fund (ETF) into the middle of US-China friction last year.
The appointment is expected to take effect in the third quarter after getting the approvals of the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC), TraHK said.
“Like TraHK, Hang Seng Bank and Hang Seng Investment Management are deeply rooted in Hong Kong,” said the bank’s chief executive Diana Cesar. “This will also further strengthen Hang Seng’s footprint and coverage in providing top notch wealth management service to the Hong Kong public.”
Hang Seng’s sizeable Hong Kong market share helped it stand out from among seven ETF managers, including Boston-based State Street, that were contending for the mandate in the tender called last year. State Street Bank and Trust Company, part of the State Street Group, will keep its role as the trustee of TraHK.