Product Literature

Ticker
Tracker Fund of Hong Kong 2800/82800

Product Literature

Tracker Fund of Hong Kong(2800/82800)

Notice to Unitholders

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Historical Financial Reports

Year Annual Report Interim Report

Monthly Return

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How to Invest

Individual Investors
TraHK is flexible and easy to trade. Investors can buy and sell them like shares during Hong Kong trading hours, typically through a stock broker or a bank. The board lots size for TraHK is 500. Investors can also employ traditional share trading techniques including stop orders, limit orders and margin purchases (if available).
To begin investing in TraHK through a monthly stock investment program, please contact your bank or broker. There are two advantages of this strategy; firstly, it removes the guesswork and is relatively inexpensive as many banks or brokers offer this type of plan from as little as HK$1,000 per month; secondly, it also encourages discipline and regular saving.
By investing in an MPF that holds units in TraHK, you may benefit from the diversification that comes from investing in a wide range of Hong Kong-listed companies. It may also be a cost-effective option with TraHK's relatively low management fees, which is particularly important as annual charges can make a big difference to your returns over time.
 
Currently the following MPF providers (in alphabetic order) offer MPFs that invest in TraHK:
 
  • American International Assurance Company Limited*
  • Bank of Communications Trustee Limited*
  • Bank of East Asia (Trustees) Limited*
  • BCT Financial Limited
  • FIL Investment Management (Hong Kong) Limited
  • Invesco Hong Kong Limited
  • Manulife (International) Limited*
  • Principal Trust Company (Asia) Limited*
  • SunLife Hong Kong Limited*
 
* These are MPF Trustees. The remaining names quoted are MPF Sponsors.
 
This list of MPF Providers is not exhaustive and is provided for information purposes only. It is subject to change from time to time. This list of MPF Providers is not intended to be and shall not be construed as a solicitation, recommendation or invitation of an offer to buy or invest in, an offer or an advertisement of, any products provided by the above list of MPF Providers. The products as offered or provided by these MPF Providers are separate to and are not endorsed by Hang Seng Investment Management Limited or TraHK.
Institutional investors can trade on the Stock Exchange, Over-The-Counter (OTC) or via Creation/Redemption mechanism on the primary market. For the primary market, TraHK consists of Participating Dealers, mostly including the market makers with the capacity and authority to create and redeem TraHK in accordance with demand.
List of Market Makers:
Please visit HKEX website to view the full list of Market Makers.

List of Participating Dealers:

B01555
ABN AMRO Clearing Hong Kong Limited
C00093
BNP Paribas Securities Services
B01130
BOCI Securities Limited

中銀國際證券有限公司

C00010
Citigroup Global Markets Asia Limited

花旗銀行

B01491
Credit Suisse Securities (Hong Kong) Limited

瑞士信貸證券(香港)有限公司

B01451
Goldman Sachs (Asia) Securities Limited

高盛(亞洲)證券有限公司

B01110
J.P. Morgan Broking (Hong Kong) Limited
B01224
Merrill Lynch Far East Limited
B01830
Mirae Asset Securities (HK) Limited

未來資產證券(香港)有限公司

B01274
Morgan Stanley Hong Kong Securities Limited
B01961
Nomura International (Hong Kong) Limited

野村國際(香港)有限公司

B01345
Phillip Securities (Hong Kong) Limited

輝立証券(香港)有限公司

B01121
SG Securities (HK) Limite

法國興業證券(香港)有限公司

C00019
The Hongkong and Shanghai Banking Corporation Limited

香港上海滙豐銀行有限公司

B01161
UBS Securities Hong Kong Limited

This list of participating dealers is provided for information purposes only and is subject to change from time to time.

TraHK in MPF Funds

Your mandatory provident fund (MPF) can be a good starting point for your long-term investment portfolio and for your retirement. By investing in an MPF that holds units in TraHK, you may benefit from the diversification that comes from investing in a wide range of Hong Kong-listed companies. It may also be a cost-effective option with TraHK’s relatively low management fees, which is particularly important as annual charges can make a big difference to your returns over time.
Currently the following MPF providers (in alphabetic order) offer MPFs that invest in TraHK:
  • American International Assurance Company Limited*
  • Bank of Communications Trustee Limited*
  • Bank of East Asia (Trustees) Limited*
  • BCT Financial Limited
  • FIL Investment Management (Hong Kong) Limited
  • Invesco Hong Kong Limited
  • Manulife (International) Limited*
  • Principal Trust Company (Asia) Limited*
  • SunLife Hong Kong Limited*
* These are MPF trustees. The remaining names quoted are MPF sponsors.
This list of MPF providers is not exhaustive and is provided for information purposes only. It is subject to change from time to time. This list of MPF providers is not intended to be and shall not be construed as a solicitation, recommendation or invitation of an offer to buy or invest in, an offer or an advertisement of, any products provided by the above list of MPF providers. The products as offered or provided by these MPF providers are separate to and are not endorsed by Hang Seng Investment Management Limited or TraHK.

Glossary List

TraHK Related Terms
For the Tracker Fund of Hong Kong (TraHK), a multiple of 1,000,000 (one million) Units.
Each business day during the continuance of TraHK (commencing on the issue date), and/or such other day or days as the Manager may from time to time determine with the approval of the Trustee, the Supervisory Committee and the Promoter.
15 minutes after the Stock Exchange of Hong Kong officially closes for trading on each dealing day or such other time on any dealing day as the Manager (with the approval of the Trustee, Supervisory Committee and the Promoter as per prospectus) may from time to time determine.
The amount included in the issue price or redemption proceeds (as the case may be) of TraHK Units issued or redeemed, representing the net undistributed dividends and other income received and held by TraHK.
Exchange Fund Investment Limited
The date each year which falls one business day immediately before a Record Date*.

* Details please refer to offering documents.
A portfolio of current Index Shares, as determined by the Manager, that are substantially similar in composition and weighting to the Hang Seng Index. The portfolio shall comprise only whole numbers of shares and no fractions or, if the Manager determines, shall comprise only round lots and not any odd lots.
Listed Shares of constituent companies in the Hang Seng Index.
Hang Seng Investment Management Limited
All of TraHK's assets (including the Index Shares held by TraHK) less its liabilities.
The NAV of TraHK divided by the number of Units outstanding.
The closing price quoted by the Stock Exchange of Hong Kong, which is used to determine the NAV of TraHK.
EFIL (or such other person for the time being duly appointed as Promoter in succession to EFIL).
The date determined by the Manager (with the approval of the Trustee and the Supervisory Committee) as the date for the purpose of determining the Unitholders of record entitled to receive any distributions of income.
For TraHK, a multiple of 1,000,000 (one million) Units.
State Street Bank and Trust Company
The price at which a fund's shares can be purchased.
The current value of the pool of money shareholders have invested in a fund.
A period during which security prices in a particular market (such as the stock market) are generally falling.
The price at which a fund's shares are sold or redeemed.
A firm that buys and sells fund shares and other securities from and to investors.
A period during which security prices in a particular market (such as the stock market) are generally rising.
A type of investment fund that has a fixed number of shares that are publicly traded.
A fee paid by investors to a broker or other sales agent for their services, such as processing a stock trade.
Earnings on an investment's earnings. Over time, compounding can produce significant growth in the value of an investment.
An organization, usually a bank, that holds the securities and other assets of a fund.
The practice of investing broadly across a number of securities to reduce risk.
Estimated NAV, also known as Indicated Net Asset Value (iNAV) or Indicative Optimised Portfolio Value (IOPV) is calculated and published throughout the dealing day on a near real time basis. Estimated NAV is calculated by taking into account the market prices of individual holdings in a fund. This value can be used to provide an indication of what a fund is worth and can be compared with the fund's bid-ask spread to assess whether the fund is being priced fairly in the market.
The FER is to provide a measure of the total level of expenses incurred in investing through a MPF fund, including the costs applied at lower level collective investment schemes but noDividends, interest and/or other short-term gains paid to a fund's unitholderst including those expenses paid directly by the MPF scheme member.

Please click here for more information.
Dividends, interest and/or other short-term gains paid to a fund's unitholders
The goal that an investor and investment fund pursue together, e.g., current income, long term capital growth, etc.
The ability to have ready access to invested money.
The amount paid to an investment manager for its services.
Ongoing charges refer to the expenses paid by an ETF or mutual fund, such as management fees, trustee's fees and operational costs, such as custody, expressed as a percentage of a fund's assets. The methodology for ongoing charges over a year may differ for different funds or providers, please refer to the relevant prospectus or offering document for more details.
An ETF that holds physical securities, as opposed to gaining exposure through derivative positions to track the performance of the underlying benchmark. Over time, the manager then tracks changes in the index and manages cash flow from dividends. This strategy may therefore likely provide very close tracking with the underlying index. All assets are held in a custody account in the name of the trustee on behalf of the fund. Physical ETFs avoid the counterparty risk inherent in derivative strategies.
A collection of securities owned by an individual or institution (such as an investment fund) that may include stocks, bonds and money market securities.
A measure of the trading activity in a fund's investment portfolio (i.e. how often securities are bought and sold by a fund).
The official document that describes a fund to prospective investors. The Prospectus will contain information required by the relevant regulatory authorities, including investment objectives and risks.
A share of ownership (or equity) in a company or corporation.
An ETF that tracks the performance of the underlying benchmark through the use of derivatives, such as total return swaps. The ETF provider enters into an agreement with one or more investment banks or counterparties that agree to deliver the return of the underlying index, typically minus a spread, in exchange for the performance of a pool of securities that is held in the name of ETF. Should the counterparty default, this collateral pool, or assets held, should provide safety for investors in the ETF.
The difference in the performance of a fund as compared to its benchmark. Passive management attempts to minimise tracking error by replicating the benchmark as closely as possible. It is referred to as tracking error even when the fund has outperformed its benchmark.

FAQ

General Questions
TraHK was the first Exchange Traded Fund (ETF) of its kind to be listed on the Stock Exchange of Hong Kong (SEHK). The Fund holds a portfolio of shares designed to provide investment results that closely correspond to, or track, the performance of the Hang Seng Index (Index).

By buying or selling Units of TraHK, investors will effectively be able to trade an entire portfolio of shares (Index Shares), representing the Hang Seng Index constituent companies, in a single transaction. You should note however that TraHK is not like a typical unit trust offered to the public in Hong Kong. The prospectus contains details of these differences.
The Hang Seng Index ("Index") was launched on 24 November 1969 and is one of the earliest stock market indices in Hong Kong. Also known as the Hong Kong Blue Chip Index, the Index measures the performance of largest and most liquid companies listed in Hong Kong.
Please click here for information about the companies included in the Hang Seng Index. If you require additional information relating to the individual companies, please contact your financial advisor.
Prospectus is an important document which provides details on the fund, its investment objectives, methods of achieving those objectives, fees, and other important information which may be necessary for investors to evaluate when assessing an investment into the fund. You should read the Prospectus (including all risks) before making your investment decision.
The Prospectus may be collected free of charge from Hang Seng Investment Management Limited, whose address is 83 Des Voeux Road Central, Hong Kong or from State Street Bank and Trust Company, whose address is 68/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. The Prospectus can also be downloaded in PDF format on this TraHK website. Please note that the distribution, possession or circulation of the Prospectus and the offering of Units may be restricted in certain jurisdictions and accordingly persons into whose possession the offering document comes are required to inform themselves about and to observe such restrictions.
No. Neither EFIL nor the HKSAR government guarantees the performance of this investment. Please see the Risk Factors section listed in the Prospectus.
There are risks associated with this investment. Before investing in Units of TraHK, you should consider whether an investment in the Hong Kong stock market is an appropriate investment for you. The Prospectus sets out a number of risk factors relevant to investing in TraHK. Please read them carefully prior to investing.
The dividend amount distributed to you will depend on TraHK’s income and expenses during the period for which the dividend is payable. Income received by TraHK will include dividends paid on the Shares of the Hang Seng Index constituent companies which TraHK holds. It is intended that dividends will be paid twice-yearly (May and November of each year). However, if the income received by TraHK is not sufficient to cover TraHK's ongoing expenses, TraHK will not pay dividends. You should also note that if you have Units registered in your name (i.e. you hold the Unit certificates) you will be charged an annual registrar charge which currently amounts to HK$ 40 every six months. This amount will be deducted from any dividend paid to you.
A Unit Trust is a collective investment vehicle structured as a Trust. Investors' contributions to the Trust are pooled to enable those investors to participate in all the investments of the Trust.
TraHK is not like a typical Unit Trust offered to the public in Hong Kong because, among other things, Units may not be redeemed for cash and Units may only be created and redeemed in one million unit sizes through designated Participating Dealers. However, Units are designed to be traded on the Stock Exchange of Hong Kong (SEHK) like a normal listed share. Please refer to the Prospectus for details.
An index fund is a fund that seeks to provide returns that closely match the performance of an index such as the Hang Seng Index.
Yes. There are a lot of index-based investment products listed on stock exchanges around the world.
The Manager of TraHK is Hang Seng Investment Management Limited. The Manager is responsible for implementing adjustments in TraHK's portfolio of shares so that the composition and weighting of the shares held by TraHK closely correspond to the composition and weighting of the Hang Seng Index.
State Street Bank and Trust Company is the Trustee for TraHK. The Trustee's responsibilities include monitoring TraHK's investments and operations.
TraHK is designed to track the Hang Seng Index by holding shares in the companies included in the Hang Seng Index in substantially the same weightings as the Hang Seng Index.
With effect from 19 September 2022, the ongoing charges over a year has been changed to 0.08%.

With effect from 19 September 2022, the management fee and trustee fee of Tracker Fund of Hong Kong ("TraHK") have been reduced. The ongoing charges figure of the Fund is an estimate calculated based on the reduced management fee, the reduced trustee fee and the ongoing expenses (excluding the management fee and the trustee fee) for the year ended 31 December 2021, expressed as a percentage of the Fund’s average Net Asset Value for the same period. It includes the fees of the Manager and the Trustee. Please refer to the “Fees, Costs and Expenses Payable by TraHK” section in the Prospectus for details. The actual figure may be different from the estimate. This figure may vary from year to year.
TraHK's Units are listed on the Stock Exchange of Hong Kong.
TraHK’s closing prices can be found on the Fund Information page of this site. Alternatively, as TraHK's Units are listed on the Stock Exchange of Hong Kong, the Fund's current price are provided by the Stock Exchange of Hong Kong and are also provided by financial data providers (such as Bloomberg) and brokerage firms. You should be aware that the trading price of a Unit may differ from the Net Asset Value (NAV) per unit.
The NAV of TraHK reflects the market value of TraHK's portfolio of Index Shares and other investments and is calculated on a per Unit basis by dividing the total NAV of TraHK by the number of Units outstanding. The NAV of TraHK will be calculated after the close of trading on the Stock Exchange of Hong Kong at the end of each dealing day. Please be aware that the NAV per Unit may differ from the trading price of a Unit on the Stock Exchange of Hong Kong.
As TraHK is listed on the Stock Exchange of Hong Kong you can place an order to buy or sell Units through a broker during the trading hours as you would in the case of a share listed on the Stock Exchange of Hong Kong. The trading price of a TraHK Unit may differ from the NAV per Unit and there can be no assurance that a liquid secondary market will exist for the Units.
You will be liable to pay stamp duty on any Units that you buy and sell in the secondary market.
A Participating Dealer is any broker or dealer who has entered into a Participation Agreement with the Trustee, the Manager, Hong Kong Securities Clearing Company Limited and HK Conversion Agency Services Limited regarding arrangements for the issue of Units for Index Shares and for the redemption of Units. The Participating Dealer creates fund Units in large increments known as creation units by assembling the underlying securities of the fund in their appropriate weightings to reach creation unit size and then delivering those securities to the fund in-kind. In return, the Participating Dealer receives fund Units which are then introduced to the secondary market where they are traded between buyers and sellers through the exchange.

Please refer to Participating Dealers List for more details. This list is provided for informational purposes only and is subject to change from time to time.
The term "redeem", in relation to a normal Unit Trust, means the sale of your Units back to the Manager of the Trust (who might then cancel the Units or resell them to a new investor at the prevailing net asset value). Typically, there is a relatively low minimum redemption size and a redemption/exit fee may or may not be payable. For more information, see questions below regarding redemption of TraHK Units.
The process of redeeming Units for Index Shares is called "redemption". However, the redemption process is used almost exclusively by large institutions rather than retail investors and will only be available through a limited number of designated List of Participating Dealers. You should note that you would need one million Units in order to redeem your Units for Index Shares in the form of an Index Basket. No cash redemptions will be permitted.

The normal way for investors holding less than one million Units to sell their Units will be on the Stock Exchange of Hong Kong via a broker at any time during the trading day.
No cash redemptions will be permitted, but you can place an order to sell your Units on the Stock Exchange of Hong Kong via a broker at any time during the trading day like any normal share listed on the Stock Exchange.
No. The minimum redemption amount is one million Units. The normal way for investors holding less than one million Units is to place an order to sell their Units on the Stock Exchange of Hong Kong via a broker at any time during the trading day.
Yes, if you satisfy the criteria for redemption, (e.g. being a participating dealer yourself and more than one million Units), the Index Shares you receive as proceeds of redemption can be sold on the Stock Exchange of Hong Kong like any other listed share. Ownership is transferred to you in the redemption process. Please note that no cash redemption will be permitted.
Investment involves risk and past performance is not indicative of future performance. Please refer to the offering document for further details including the risk factors. The website has not been reviewed by SFC. Issued by Hang Seng Investment Management Limited.