UOB Asset Management (UOBAM), on March 29, has announced its partnership with Mirae Asset Global Investments (Hong Kong), where it will boost its exchange-traded fund (ETF) capabilities.
Mirae Asset is the manager of the Global x ETF series in Hong Kong.
Both parties, which signed a memorandum of understanding (MOU), will jointly roll out ETFs across Asia over the next three years.
Countries include Singapore, Taiwan, Thailand, Vietnam, Indonesia and Malaysia where UOBAM has a presence in.
Under the agreement, UOBAM will also receive ETF consulting services and training from Mirae Asset, which has experience in thematic investing and a line-up of nearly 400 ETFs globally.
Both UOBAM and Mirae Assets will then tap on UOBAM’s insights into three megatrends in Asia, which are changing demographics, going green, as well as the digital economy.
According to the statement released by UOBAM, these megatrends have the potential to enable Asia to develop innovative ETFs.
UOBAM will then distribute these ETFs through its marketing channels, as well as its network in Asia.
Thematic ETFs are ETFs that aim to capture the growth of a sector such as clean energy or cloud computing. According to leading independent and research consultancy firm ETFGI, thematic ETFs in the Asia Pacific (excluding Japan) stood at US$543.1 billion ($738.95 billion) with 2,467 listings on 20 exchanges as at end-November 2021.
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Data from Singapore Exchange (SGX) showed that total assets under management of SGX-listed ETFs have increased almost 50% y-o-y to $12.6 billion as at Dec 31, 2021.
Thio Boon Kiat, CEO of UOBAM says, “UOBAM is excited to be partnering Mirae Asset through their Global X ETFs series, to co-create and launch innovative ETFs which can help more investors build diversified portfolios that capture growth opportunities in the region.”
“Investors will also find it simpler to ride on long-term investment trends, from financial technology to renewable energy, which were identified in our megatrend report, that appeal to them,” he continues. “Working with like-minded partners such as Mirae Asset enables us to elevate UOBAM’s product offerings, provide investors with more investing options and contribute to the vibrancy of the region’s ETF markets.”
Jung-Ho Rhee, CEO at Mirae Asset Global Investments adds, “We are delighted to collaborate with UOB Asset Management to provide Asian investors with greater access to our intelligent and innovative ETF solutions. Amongst other initiatives, we will be working to offer investors in South East Asia and beyond a wide range of high-quality thematic growth strategies focusing on companies at the cutting edge of disruptive innovation and reshaping the global economy”.
