1 / 38

State Street Global Advisor Asia Limited– Analysis of Tracker Fund

State Street Global Advisor Asia Limited– Analysis of Tracker Fund. Content. Introduction of State Street Global Advisor Asia Limited Background of Tracker Fund Trend of Tracker Fund Comparison on Tracker Fund & Hang Seng UK Index Fund Advantages of investing Tracker Fund

varuna
Download Presentation

State Street Global Advisor Asia Limited– Analysis of Tracker Fund

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. State Street Global Advisor Asia Limited– Analysis of Tracker Fund

  2. Content • Introduction of State Street Global Advisor Asia Limited • Background of Tracker Fund • Trend of Tracker Fund • Comparison on Tracker Fund & Hang Seng UK Index Fund • Advantages of investing Tracker Fund • The Prospect of Tracker Fund

  3. Investment Company - State Street Global Advisor Asia Limited (SSgA Asia) - regional headquarter of SSgA SSgA : investment management division of State Street Corporation

  4. Background : • State Street Global Advisor (SSga) • Established in 1978 • US$1.5 trillion

  5. State Street Global Advisor Asia (SSgA Asis) • 11 investment centers: • Paris, Singapore, Hong Kong -established in HK in 1990 -full investment center in 1997

  6. Solutions: • Defensive/ • aggressive strategies • active /enhance/ passive style

  7. Achievements: • The largest manager of : Institutional assets worldwide Passive international indexed securities Endowment and foundation assets, etc

  8. The manager of the Tracker fund • Straits Times Index (STI) • ABF Pan Asia Bond Index Fund (PAIF)

  9. Background of Tracker Fund

  10. Tracker Fund • Stays close to the Hang Seng Index • Buying Tracker Fund = Invest on a basket of stock:~diversification~low transaction cost

  11. Background of Tracker Fund • Launched on 12th November,1999 • Second large IPO in Asia(issue size HK$ 33.3 billion) • Supported by governmentGovernment chose State Street Bank and Trust Co.

  12. Similarities and differencesbetween Track Fund and Common stock Similarities: • Receive cash dividends • Buy or sell tracker Fund in Hong Kong during trading day • Tell the investment performance at any time Difference: • Distribution of Dividend • Nature

  13. Trend of Tracker Fund

  14. Trend of TraHK

  15. Trend of TraHK (cont’d) • U-shaped • Listed in HK stock market in 1999 • Highest value: $19.39 • Lowest value: $8.5 • A watershed in mid-2003

  16. Listed in 1999 • Under the influence of Asia Financial Crisis • Unstable in the speculation of stock market • Market value fluctuated between $14 - $18

  17. September 2001  911 • Attacked financial market all over the world • TraHK dropped to $9 X

  18. March 2003 SARS • Very week of the economy • Value nearly $8 SARS

  19. A watershed in 2003 • TraHK climbed up to over $19 in 2006

  20. Comparison on Tracker Fund & Hang Seng UK Index Fund

  21. Tracker Fund Vs. Hang Seng UK Index Fund State Street Global Advisors Vs. Hang Seng Bank Management Comparison between two index fund

  22. Objectives Tracker Fund: • performance of the Hang Seng Index. Hang Seng UK Index • performance of the FTSE 100 Index (英國富時指數)

  23. Tracker Fund: Distribute all of TraHK's net income Made net of TraHK’s expenses. Hang Seng Index Fund: Unless a Unit holder requests Each distribution will be reinvested in the subscription for further units. Distribution Policy

  24. Charges & Expenses

  25. Weightings of Four Sectors

  26. Dividends

  27. Summary on comparisons Hang Seng UK index Fund: • More diversify of the portfolio • Different sectors in FTSE 100 Index Tracker Fund: • Investment requirement • Return rate higher

  28. Advantages of investing Tracker Fund

  29. (1) Diversification - Adverse proportion between risk and diversification - Tracker Fund Investing in a portfolio of securities 1-34 shares Hang Seng Index Funds Risk decreases

  30. (2) Low initial investment and low transaction cost - Comparison between the investment cost of buying Tracker Fund and 1-34 Hang Seng Index Funds *The figures are calculated on 23rd November 2006 - Using low initial investment cost to buy a portfolio

  31. (2) Low initial investment and low transaction cost (con’d) • 0.1125%  stamp duty • less than 0.25%  the brokers’ commission • 0.011%  the transaction cost on Hong Kong Exchanges and Clearing Limited Less than 0.1%

  32. (3) Convenience • Investors can buy and sell their Tracker Fund through brokers during the trading hours of the stock exchange • Not limited by the rule—only one dealing per day Transact without the numbers of transaction

  33. (4) Professional management • State Street Corporation sound expertise and solid investment experience • change the weighting of the predicted performance of 34 Hang Seng Index Funds Focusing on the Hang Seng Index do not necessary to acquire enough securities on different industries

  34. The Prospect of Tracker Fund

  35. Prospect of Tracker Fund • Competitive advantagelow transaction cost, trustee fee, low risk • Do the competitive advantage still there in the future? • Others Fund (like Hang Seng Index fund)challenge Tracker Fund

  36. Comparing Tracker Fund with Hang Seng Index Fund • Return rate • Weight of the sector of constituent stock • Trustee fee

  37. The End of our presentation Thank you for your attention Cheung Kai Yan, Irene (043011) Chan Hiu Ting, Christine (043019) Wan Kit Ying, Kitty (043020) Law Fong Ting, Fonteyn (043023) Chan Sin Yan, Cyto (043024)

More Related