$500 Million Deal
Mirae Asset Global Investments announced on February 19 that the company signed an agreement for the acquisition of Global X, an exchange traded funds (EFT) company in New York of the US. It took US$488 million in total to take over a 100-percent stake in Global X.
Earlier, Mirae Asset Global Investments acquired Horizon, a Canadian ETF management company in 2011, and Beta Shares in Australia. Currently, the company ranks 21st in the world while managing US$20 billion in net assets such as eight trillion won in TIGER ETF, 7.8 trillion won in Horizon ETF in Canada, 4.3 trillion won (US$3.8 billion) in Beta Share ETF in Australia and ETFs in Hong Kong, Colombia and the US.
If the acquisition of Global X is completed, Mirae Asset Global Investments’s ETF net assets will surpass US$30 billion, securing the world's 18th highest competitiveness.
In particular, the company is expected to accelerate the expansion of emerging markets program (EMP) funds, which utilize close to 300 global ETFs.
Global X is a specialized ETF management company established in 2008 and has a total of 52 product line-ups. As of the end of last month, Global X's assets under management amounted to US$10.2 billion. Its net assets increased over 4 trillion won over the past year including the influx of 2.5 trillion won (US$2.2 billion) in technology-themed ETFs.
Global X is building product lineups by dividing them into theme-type, income-type, nation-by-nation, and smart beta ETFs. The most noteworthy product is BOTZ ETF, which follows an index consisting of beneficiaries based on the use of robotics and artificial intelligence. BOTZ ETF's return exceeded 58 percent last year.
Mirae Asset Global Investments established an overseas fund management corporation in Hong Kong for the first time in 2003 and is providing investment solutions that can contribute to customers' nice and stable retirement lives through its global network spanning 12 countries including India, the UK, the US and Brazil. In 2008, the company set up an SICAV in Luxembourg for the first time as a Korean fund management company and selling Mirae Asset funds to foreign investors in more than 30 countries through the SICAV.