Mirae Asset Management Celebrates 20th Anniversary of Overseas Expansion, Remains Strong Despite Global Economic Downturn

Mirae Asset Global Investments demonstrated strong capabilities last year despite various adverse factors such as inflation and U.S.-led interest rate hikes, which continued to cause a global economic recession.

As of the end of 2022, Mirae Asset Global Investments' total assets under management (AUM) domestically and internationally amounted to 250 trillion KRW, of which 97 trillion KRW, or 40%, were managed overseas. During the past year marked by a global economic crisis, overseas managed assets exceeded the 2021 year-end scale (102 trillion KRW), showcasing solid capabilities.

Notably, this year marks the 20th anniversary of Mirae Asset Global Investments' global expansion, being the first domestic asset management company to challenge overseas markets. Mirae Asset Global Investments took its first step into overseas markets by establishing a Hong Kong subsidiary in 2003, the first among domestic asset managers. At that time, negative views were widespread domestically, considering competition with prestigious firms like Goldman Sachs and Merrill Lynch to be unrealistic, but Chairman Park Hyun-joo of Mirae Asset Group did not lose sight of a long-term vision for overseas markets. Currently, Mirae Asset has grown into a unique global financial group, acquiring overseas ETF management companies with profits earned abroad.

Mirae Asset’s global business is driven by ETFs active worldwide in the U.S., Canada, Hong Kong, and other regions. A representative product is the U.S. ETF management subsidiary Global X. In 2018, Mirae Asset Global Investments acquired Global X, an ETF manager recognized as a rising star in the U.S. market, which accounts for about 70% of the global ETF market. At the time of acquisition, Global X’s ETF AUM was only 8 trillion KRW, but by the end of 2022, it had grown approximately sixfold to 45 trillion KRW. Horizons ETFs, a Canadian ETF management subsidiary acquired by Mirae Asset Global Investments in 2011, is also actively managing assets worth 21 trillion KRW.

원본보기 아이콘

With a global network established worldwide, Mirae Asset Global Investments is also showing remarkable performance in terms of profits. In 2022 alone, Mirae Asset Global Investments generated about 45% of its profits overseas. Unlike other domestic asset managers whose profits are mostly confined to the domestic market, Mirae Asset Global Investments is demonstrating its position as a global financial group growing in both domestic and international markets.

Last year, Mirae Asset Global Investments and Global X acquired Australian ETF manager ‘ETF Securities.’ This is the first case of a domestic asset manager acquiring an overseas ETF management company with profits earned abroad. ETF Securities, ranked seventh among Australian ETF managers, holds various innovative growth-themed ETFs with net assets of approximately 4 trillion KRW.

Based on operational know-how accumulated domestically and internationally, Mirae Asset Global Investments has significantly grown Global X to a level capable of acquiring other asset managers. Currently, ETF Securities has changed its name to Global X Australia and is leveraging synergies with Global X to target the Australian ETF market and the rapidly growing pension market. Mirae Asset Global Investments is planning to expand investments in the Australian market based on its experience operating the Four Seasons Sydney hotel and its Australian subsidiary.

Mirae Asset Global Investments is also focusing on pioneering emerging markets. The India subsidiary, established in 2006, is currently the only independent foreign capital asset manager operating there. After the financial crisis, most global asset managers withdrew from the Indian market or converted to joint ventures, but Mirae Asset continued investing based on India’s growth potential. The India subsidiary has built a system to directly establish and manage funds and sells products to locals, growing into the ninth-largest asset manager in India. Last year, it also established a branch in Dubai, geographically close to India and with a high Indian population, marking the first domestic asset manager to enter the Middle East.

Recently, Mirae Asset Global Investments has been attracting market attention by strengthening global partnerships. Global X signed a partnership with BB Asset, Brazil’s largest asset manager, and launched a new fund. This is highly regarded as the first ETF investment partnership between global asset managers within Brazil. In Brazil, the local subsidiary celebrated its 10th anniversary in September 2018 by listing the country’s first bond-based ETF on the Brazilian Stock Exchange (BM&F Bovespa), and last year changed its name to Global X Brazil to pursue more aggressive business activities.

A representative of Mirae Asset Global Investments said, “Since entering Hong Kong in 2003, we have continuously expanded our global network for 20 years, including acquiring global asset managers solely with profits earned from overseas subsidiaries,” adding, “We will focus even more on discovering high-quality assets worldwide and providing competitive financial products.”

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.