Wednesday, October 23, 2019
Mirae Asset Joins Hands with Daiwa Group to Move into Japan's ETF Market
Mirae Asset's U.S. Subsidiary Sets up Joint Venture with Daiwa
Mirae Asset Joins Hands with Daiwa Group to Move into Japan's ETF Market
  • By Yoon Young-sil
  • September 19, 2019, 09:57
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Mirae Asset Financial Group has moved into the Japanese ETF market through a joint venture between Global X, its subsidiary in the United States, and Tokyo-based Daiwa Securities Group.

Global X, an American subsidiary of Seoul-based Mirae Asset Financial Group, has partnered with Tokyo-based Daiwa Securities Group to set up a joint venture to respond to Japan’s growing demand for exchange traded fund (ETF) products. Mirae Asset Group has entered numerous overseas markets so far but this is the first time for it to push into the Japanese market. Mirae Asset Daewoo Hong Kong chairman Park Hyeon-joo announced in March this year that the group would make inroads into the Japanese market by the end of the year.

Mirae Asset Group set up an ETF managing firm “Global X Japan” with Daiwa Securities earlier this month. The joint venture will be headquartered in Chiyoda, Tokyo.

It is worth noting that it is Global X, not Mirae Asset Global Investments, that has established the joint venture. Mirae Asset Group bought U.S. ETF operator Global X for US$500 million (596 billion won) last year. Founded in the United States in 2008, Global X owns various thematic ETF product lineups. By acquiring Global X, Mirae Asset Global Investments has moved up three notches from 21st to 18th spot in the world in terms of net assets.

Mirae Asset Group has been in partnership with Daiwa Group for a long time. Park met with Akira Kiyota, chairman of Daiwa Securities Group, in 2010 to discuss joint projects between the two groups and has started selling Mirae Asset Global Investments’ products through Daiwa Securities since then.

Global X and Daiwa Group are planning to sell Japanese financial products and ETF products listed on the U.S. stock markets in the local retail market. The global ETF market is growing every year but Japan still continues to manage assets focusing relatively on savings.

With the establishment of Global X Japan, Mirae Asset Group has expanded its business to the Japanese market. The group has entered a range of countries such as Hong Kong, Europe, India and the United States but this is the first time to operate business in Japan. Daewoo Securities had an office in Japan before it was merged with Mirae Asset Group but closed it down after the merger.