Mirae Asset Global Investments is aiming to construct a $50bn change traded fund enterprise in Australia inside three years, following its acquisition this month of ETF Securities, one of many pioneers of Australia’s ETF sector.
Mirae has pursued acquisitions to speed up the growth of its ETF enterprise past its house market in South Korea to the US, Europe, Latin America and Asia. It acquired Horizon ETFs, a Canadian supervisor, in 2011, after which purchased Global X, a New York-based issuer, in 2018, earlier than the cope with ETF Securities which at the moment manages A$4.7bn ($3.2bn) of belongings.
The acquisition of ETF Securities lifts Mirae’s whole ETF belongings to greater than $85bn, rating it because the 14th largest supplier globally, simply behind JPMorgan and UBS, based on ETFGI, a knowledge consultancy.
Global X was within the technique of making use of for regulatory permission to launch ETFs in Australia and determined to purchase ETF Securities to convey “immediate scale” to its operations within the nation, mentioned Byungsung Lee, chief govt of Mirae Asset Global Investments.
Luis Berruga, the chief govt of Global X, mentioned that ETF Securities’ senior management group would stay in place and that no job losses had been deliberate following the deal. No monetary particulars have been disclosed and no resolution has but been made whether or not or not the enlarged Australian unit will function beneath the Global X identify or retain its branding as ETF Securities.
Under the management of Berruga, who was promoted to CEO in 2018, Global X has quadrupled its belongings beneath administration and worker numbers by pursuing an lively worldwide growth technique.
It opened a London workplace in December 2020 to ascertain a foothold in Europe and agreed a three way partnership with Diawa which offered an entry into Japan’s ETF market in 2018. In Brazil, Global X gives 19 ETFs, cross-listed on São Paulo’s B3 change, and it lately debuted the primary fastened earnings ETF listed in Colombia.
Berruga mentioned that he anticipated to see ETF adoption by non-US buyers rise in the direction of ranges already witnessed within the US.
“ETF represented just 1 per cent of the assets held in US mutual funds in 2000 and that has now increased to more than a third. We are already seeing a clear trend of rising ETF adoption in Europe and that will also follow in Asia, Latin America and Australia,” he mentioned.
Technological modifications, together with the flexibility to purchase ETFs by way of a cell phone, rising monetary training and demographic shifts which can be forcing extra staff to avoid wasting for retirement by way of non-public pension schemes, ought to all assist to drive wider ETF adoption, mentioned Berruga.
In the US, Global X loved internet inflows of $3.3bn within the first 5 months of this yr after registering document inflows of $21.2bn over the entire of 2021, based on ETFGI.
Berruga mentioned he anticipated Global X’s US belongings to rise from about $40bn at the moment to $100bn over the following three years because of rising retail investor curiosity in its thematic and commodity-focused methods.
“ETFs are a more efficient investment vehicle for the large majority of investors. Why would anyone buy a mutual fund when they can invest via an ETF,” he mentioned.
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