More than a year after State Street Global Advisors faced scrutiny over a decision to comply with and then overrule U.S. sanctions, the Boston-based firm is reportedly set to be replaced as the manager of the Tracker Fund of Hong Kong.
State Street Global Advisors (SSGA) Asia will step down as the manager for the Tracker Fund of Hong Kong, according to a «Caixin» report citing unnamed sources.
Hong Kong retail banking giant Hang Seng’s investment arm – Hang Seng Investment Management – will replace SSGA Asia and the announcement for the change will be made within the next one or two weeks.
Tracker Fund of Hong Kong
The Tracker Fund of Hong Kong has a storied legacy as it was created to help the city government dispose of shares acquired during the 1997 Asian financial crisis in a way that minimizes market impact.
SSGA Asia was appointed as the fund manager and held the role for more than 22 years.
U.S.-China Tensions
But in recent years, rising tensions in U.S.-China relations have created troubles for various financial institutions including SSGA.
In January last year, it was caught in the crossfire after it complied with U.S. sanctions that banned investment into stocks linked to the Chinese military before reversing the decision in a matter of days after the city leader signaled the possibility of a manager change.
