Mirae Asset Global Investments is ramping up its ETF (exchange traded funds) business in the global market. As of the end of October, Mirae Asset was furnishing 173 ETFs, worth 11.3 trillion won, in six countries -- South Korea, Canada, Australia, Hong Kong, the US and Colombia.
Compared to the early days of Mirae Asset’s global expansion, near the end of 2011, its net assets and the number of ETFs have more than doubled. This year alone, its assets grew approximately 1.7 trillion won.
In 2011, Mirae Asset Global Investments had become the first Korean asset management firm to have its ETF directly listed on the Stock Exchange of Hong Kong (SEHK). Following the listing of the Mirae Asset TIGER KOSPI 200 ETF, Mirae Asset broke into the North American market by acquiring Canada’s Horizons ETFs Management in the same year.
In 2013, Mirae Asset became the first Asian asset management firm to have its ETF (Horizons S&P MILA 40 ETF) listed on the Latin American Integrated Market (MILA). Last year, Mirae Asset’s “Horizons Korea KOSPI 200 ETF,” which uses the KOSPI 200 as a benchmark index, began trading on the New York Stock Exchange (NYSE).
This year, four of Horizons ETFs Management’s ETFs won "best" in their respective categories at the 2015 Lipper Fund Awards ("Lipper Awards"). The strength of global Mirae Asset ETFs lies with Mirae Asset’s diverse product lineup ranging from sector-specific ETFs (e.g. healthcare, commodity, consumer goods) and country-specific ETFs (e.g. the US, China, Japan) to inverse ETFs and leveraged ETFs. Offering such diversified ETFs, many think, Mirae Asset has provided investors creating their portfolios with access to a wider selection of investment options.
Mirae Asset’s offerings move beyond passive ETFs, index funds that track a specific benchmark. It has been offering active alpha-seeking ETFs, which make up 25 percent of Mirae Asset’s ETFs.
Considering the ETF business as one of Mirae Asset Global Investments’ major sources of revenue, Mirae Asset has continued to thrash out ways to create synergistic effects by leveraging its global networks.
On Nov. 9, Mirae Asset Global Investments held the 2015 Mirae Asset Global ETF Seminar to allow Mirae Asset ETF CEOs and CIOs (chief investment officers) from six nations to pool their views on global ETF market trends and expertise on various ETF investment strategies.
At the 2015 Mirae Asset Global ETF Seminar, discussions on the launch of a global ETF platform and asset allocation & portfolio composition took place. Seminar attendees are still sharing their investment direction with one another through video conferring and regular exchanges.
“Mirae Asset's ETF experts from around the world put their heads together to predict the global ETF market and exchange their views on investment tools and other issues. Having set up a diverse range of ETFs, Miare Asset will offer smart ETFs and other various products to investors seeking to diversify their investments,” said Lee Tae-yong, global head of Mirae Asset's ETF Business, at the 2015 Mirae Asset Global ETF Seminar.
Steve Hawkins, Co-CEO and CIO of Horizons ETFs Management, said: “Horizons ETFs Management is offering various products which investors can utilize in strengthening their portfolios according to market conditions. In particular, we are strong in active ETFs. Our ETFs have recently won the 2015 Lipper Fund Awards because we have shown that low-yield ETFs will perform well once they have been actively managed. In the future, Mirae Asset will take the lead in carrying out various strategies through active ETFs in Korea.”
BetaShares managing director Alex Vynokur said: “BetaShares’ ETFs have continued to be responsible for about 20 percent the Australian ETF market’s capital influx. More financial consultants are taking advantage of EFTs and it is encouraging because Mirae Asset boasts a wide range of products. By tapping into Mirae Asset’s global ETF networks, we will further diversify our product lineup.”