Mirae Asset Securities has acquired market maker GHCO for $40m

Mirae Asset Securities acquires GHCO in $40m deal

Korean securities company enters European market

Mirae Asset Securities has acquired market maker GHCO for $40m as the group continues to expand its global ETF business.
The deal, which completed on 6 December, is the first purchase made by the securities arms of Mirae Asset Global Investments outside of the Asian market and is the firm’s first entry into Europe.

Speaking to ETF Stream, Daniel Izzo, CEO of GHCO, said the deal will give his firm the scale to compete directly with the two largest market makers in Europe, Jane Street and Flow Traders.
“The barriers to entry are exceedingly high in Europe and it takes scale to make a legitimate competitive effort. That is what this transaction gives us; the capability, scope and scale to get to the next level and pose as a legitimate competitor.”

GHCO, launched in 2005, will be incorporated as a subsidiary of Mirae Asset Securities in the first half of 2023, subject to regulatory approval.
Izzo (pictured), who has long been a proponent of shifting ETF trading volumes away from request for quote platforms and onto exchanges, will remain as CEO following the acquisition.

Meanwhile, GHCO’s head of trading and managing partner Stefan Kaba-Ferreiro is leaving to establish his own crypto business.
In a LinkedIn post, Kaba-Ferreiro wrote: “I will be completing my handover in London over the next couple of months and taking some time to recharge as the last few years in markets have been relentless.
“My partner and friend Dan is continuing on as CEO with new investors...as well as the rest of the excellent team.” In August, Mirae Asset Securities took its first steps in the European market with the appointment of
former Tradeweb director of ETF sales Alex Gladkow.
Gladkow joined the business as an “ETF ambassador” in Europe, responsible for enhancing the strategic direction of the firm as a trusted partner in the European ETF space.
The latest acquisition is a sign the group is looking to expand its ETF capabilities beyond asset management.
Mirae is currently represented in the European ETF market by Global X, which it acquired in 2018, with the firm embarking on a rapid expansion of its European ETF range this year.
Izzo added GHCO will continue to operate as an independent firm to avoid “conflicts of interest” with other ETF issuers.
In June, Mirae Asset Global Investments and Global X acquired ETF Securities Australia, which housed
roughly A$4.7bn assets under management (AUM) at the time of purchase.
The firm currently runs ETFs in the US, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea and Vietnam.

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Mirae Asset Bolsters Income ETF Line-up with Global X Asia Pacific High Dividend Yield ETF

Fund delivers access to 40 of the highest dividend-yielding securities listed in the Asia Pacific and aims to distribute income on a quarterly basis1

July 27, 2022, Hong Kong Mirae Asset Global Investments (Hong Kong) Limited (the “Firm” or “Mirae Asset”) announced the launch of the Global X Asia Pacific High Dividend Yield ETF. The fund, which begins trading on the Hong Kong Stock Exchange (“HKEX”) today, aims to deliver convenient and cost-efficient access to 40 of the highest dividend-yielding securities listed in the Asia Pacific. This launch brings the total number of Hong Kong-listed ETFs and ETPs offered by the Firm to 28, and adds to its suite of income ETFs which are designed to help diversify and enhance the yields of investor portfolios.

As central banks continue to tighten monetary policy in a bid to control inflation, bond yields have been rising at a rapid pace. Whilst high-yielding stocks are often thought to face headwinds in a rising yield environment as competition for investors’ capital intensifies, in Asia these stocks have exhibited the potential not only to deliver high levels of income but to outperform broad market indexes. Over the previous three periods of rising yields, the Solactive Asia Pacific High Dividend Yield Index outperformed the MSCI AC Asia Pacific Index by 7.3% on a cumulative basis, whilst in terms of dividend yield, the Solactive Asia Pacific High Dividend Yield Index delivered 8.0% as of June 30, 2022, which is more than double the 3.2% offered by the Hang Seng Index.2

Jung Ho RHEE, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, said: “The Asia Pacific has consistently offered the highest levels of dividend yields compared to other regions around the world3, driven by the strong fundamentals and healthy cash balances of its corporates. The Global X Asia Pacific High Dividend Yield ETF aims to tap into the vast income opportunity presented by this region at a time when investors urgently need to protect their portfolios against rising inflation.” RHEE further adds: “Mirae Asset will continue to drive product innovation to adequately serve the diverse investment needs of our investors.”

The Global X Asia Pacific High Dividend Yield ETF tracks the Solactive Asia Pacific High Dividend Yield Index to deliver high-yielding exposure to the Asia Pacific market. Constituted by the top 40 highest yielding securities listed in the Asia Pacific, the index is reviewed and rebalanced on a quarterly basis. The fund aims to pay out dividends quarterly, in March, June, September, and December.4

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Global X Launches ETF to Invest in Disruptive Materials

Thematic ETF provider Global X ETFs announced the launch of the Global X Disruptive Materials ETF (DMAT). Formerly known as the Global X Advanced Materials ETF, the fund trades on the Nasdaq and offers investors targeted exposure to global companies that drive long-term, paradigm-shifting themes.

DMAT seeks to invest in companies that produce metals and other raw or composite materials that have been identified as essential to disruptive technologies as identified by the underlying index, the Solactive Disruptive Materials Index. The fund will join Global X’s suite of 34 Thematic Growth ETFs.

From alternative energy sources such as solar panels and wind turbines to evolving technology like lithium batteries and electric vehicles, disruption is rapidly changing how our world looks. These advancements can help slow climate change, improve productivity, or connect millions of people around the world.

But behind these complex technologies are many essential raw inputs like certain metals, minerals, and materials, including carbon fiber, cobalt, copper, graphene & graphite, lithium, manganese, nickel, platinum & palladium, rare earth elements, and zinc — collectively known as “disruptive materials.” Just as fossil fuels were critical commodities for the 20th century economy, disruptive materials could be the essential inputs for the 21st century economy.

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Mirae Asset Global Investments Investor Climate Action Plan

Case Study: Mirae Asset Global Investments Investor Climate Action Plan

ICAPs Expectations Ladder ?Mutually beneficial interaction of participants in the medical and insurance markets kamagra gold who should have the flu vaccine? Focus Area: Investments

Mirae Asset Global Investments (Mirae Asset) was founded in Asia and now operates worldwide across 12 markets, where it takes a collaborative approach in managing a fully diversified investment platform. Mirae Asset invests in multiple asset classes through exchange-traded funds (“ETF”), mutual funds and alternatives and currently invest over US$218bn on behalf of clients, giving it the scale and experience to identify opportunities in a changing world (AUM as of September 2021).

Decarbonisation of global economies is no longer old news; this low carbon trajectory needs to accelerate in order to keep global warming to 1.5C as re-emphasised at the latest COP26. The financial implications of climate change - those that arise from risks due to extreme climate events or stranded assets as well as those that arise from low carbon opportunities – need to be considered as part of investment decisions. Mirae Asset is a supporter of the Task Force for Climate-related Financial Disclosures (TCFD) and also participates in collaborative climate engagement through Climate Action 100+.

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Eye of the Tiger: 2022 Emerging Markets Outlook

Coming out of 2021 and into the Lunar Year of the Tiger, there are three areas in which we believe Emerging Markets (EM) are ahead of the pack creating a foundation for opportunities within the asset class in 2022:

  • Vaccination rates in key EM countries, such as China, Taiwan, South Korea, and most of Latin America, are well ahead of the US.
  • Chinese regulations startled markets in 2021, but we believe similar rules are yet to come across US and European markets.
  • Several EM central banks (Russia, Brazil Chile, Colombia, Mexico, Peru, the Czech Republic, Hungary, Poland, Korea, and South Africa) began raising interest rates well ahead of the US and Europe in 2021.

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Mirae Asset ESG Summit 2021

Mirae Asset hosted an inaugural ESG Summit where our panel of speakers shared their overview of ESG regulatory developments, discussed corporate actions on ESG, and explained what market trends have caught their eyes. Key takeaways and on-demand videos of the event:

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