With the strong performance of the Hong Kong stock market, the assets under management of the Tracker Fund (2800) surged over HK$100 billion, said a statement from State Street Global Advisors, manager of the fund.
The solid earnings of the fund was supported by the rising blue chip's capitalization and the growth of MPF members' average gain.
June Wong, senior managing director at State Street Global Advisors, said she believed that demand for exchange-traded funds (ETF) among Asian investors will continue to grow and it has been increasingly used by Hong Kong employees in their Mandatory Provident Fund investments.
The Tracker Fund was designed to provide investment results that closely correspond to the performance of the Hang Seng Index.
Meanwhile, the Hong Kong Investment Funds Association said it expects the ETF Connect to be launched as soon as possible.
Its chief executive officer, Sally Wong, said yesterday the proposed ETFs should have the same model as the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect and should have its own limit on the transaction amount.
Cindy Chen, the country head of Hong Kong securities services at Citigroup, said the launch of ETF Connect will be largely welcomed as it will help investors diversify their investments.