Local ETF provider ETF Securities Australia has been acquired by Mirae Asset Global Investments and its New York-based subsidiary Global X ETFs.
In a statement released on Wednesday, Mirae Asset and Global X said that the acquisition provided them with the opportunity to add instant scale to the Australian market.
Additionally, the product lineup of ETF Securities was described as complementary to the offerings provided by the firms to global investors.
Mirae Asset and ETF Securities did not disclose the terms of the acquisition.
“We are incredibly excited to enter the Australian market and to meaningfully expand our global ETF footprint through the acquisition of ETF Securities’ inventive business,” said Mirae Asset Global Investments CEO Byungsung Lee.
“This acquisition underscores Mirae Asset’s continued commitment to maintaining industry-leading ETF businesses in key markets around the world and brings immediate scale to our operations in Australia.”
With the addition of $4.7 billion in assets under management (AUM) from ETF Securities, Mirae Asset’s ETF AUM now exceed $85 billion.
The firm said that the acquisition would provide ETF Securities with the resources of a large institution with more than 12,000 employees across developed and emerging markets.
Graham Tuckwell, the founder and chairman of ETF Securities, said that his firm had been a pioneer in the ETF industry over the past 20 years.
“From the introduction of the world’s first physical gold ETF in 2003 to maintaining the largest precious metals ETF platform in Australia today and expanding its offering to include a growing range of thematic and digital assets products, I’m exceedingly proud of what the team has been able to accomplish,” he said.
“As true innovators in the ETF industry around the world, Mirae Asset and Global X are like-minded – undeniably sharing our Australian teams’ visionary mindset and commitment to client service.”
ETF Securities will also gain access to the resources and expertise of Global X including its research and product development capabilities.
“ETF Securities and Global X share an exploration mindset that has allowed both businesses to quickly adjust to the demands of a very fast industry, and we are thrilled to leverage our global capabilities to support ETF Securities’ next phase of growth,” said Global X CEO Luis Berruga.
“By joining forces, we are able to share resources to provide Australian investors with truly first-of-their-kind ETFs across thematic, commodities and digital assets.”
Mirae Asset announced a range of local appointments last year and hired former ETF Securities CEO Kris Walesby as CEO of its Australian operations.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.