UOB Asset Management Ltd (UOBAM) today announced that it will partner Mirae Asset Global Investments (Hong Kong) Limited (Mirae Asset) on deepening its exchange-traded fund (ETF) capabilities and the joint roll-out of ETFs across Asia over the next three years. Under a Memorandum of Understanding (MOU) signed by the two companies, UOBAM will collaborate with Mirae Asset, the manager of Global X ETFs series in Hong Kong, across Singapore, Taiwan, Thailand, Vietnam, Indonesia and Malaysia, where UOBAM has a presence.
Thematic ETFs, which aim to capture the growth of a sector such as clean energy or cloud computing, first gained popularity in the United States and Europe1, and subsequently gained traction in the Asia Pacific. According to ETFGI2, total ETF investments in the Asia Pacific (excluding Japan) recorded US$543.1 billion, with 2,467 listings on 20 exchanges as at the end of November 2021. Data from Singapore Exchange (SGX) showed that total assets under management of SGX-listed ETFs increased almost 50 per cent year to S$12.6 billion as at 31 December 2021.
To step up its participation in the growing ETF space, UOBAM will receive ETF consulting services and training from Mirae Asset, which has expertise in thematic investing and a diverse line-up of nearly 400 ETFs globally. The two companies will tap UOBAM’s insights3 into three megatrends in Asia – changing demographics, go green and the digital economy – that have the potential to put the region at the helm of future global growth to develop innovative ETFs. UOBAM will then distribute these ETFs through its established marketing channels, tapping its extensive Asian network, as well as expertise and experience built up over more than 35 years. The collaboration brings together the expertise of UOBAM and Mirae Asset to provide investors with a broader range of investment options.
Mr Thio Boon Kiat, Chief Executive Officer, UOBAM, said, “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. 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.”
Mr Jung-Ho Rhee, Chief Executive Officer, Mirae Asset Global Investments, said, “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”.
In 2021, UOBAM (Thailand) and Mirae Asset jointly launched the United Hero ETF (UHERO ETF), which invests in the Global X Video Games and E-sports ETF that tracks the Solactive Video Games & E-sports Index (SOLHERO4). The collaboration enables Thai investors to gain exposure to opportunities in the global e-sports sector through Global X ETFs.
Noting the increasing popularity of ETFs among investors, last year UOBAM also listed on SGX the world’s first Asia Pacific green real estate investment trust (REIT) ETF, the UOB APAC Green REIT ETF. The UOB APAC Green REIT ETF gives investors in Singapore access to quality green REITs across the region. The ETF attracted more than S$80 million in assets during the initial offering period from 5 to 18 November 2021.
1Source: “The Rise of Thematic ETFs”, Morningstar, 18 January 2021, https://www.morningstar.co.uk/uk/news/208785/the-rise-of-thematic-etfs.aspx.
2ETFGI is a leading independent research and consultancy firm covering trends in the global ETF and exchange-traded product ecosystem.
3Source: From Powerhouse to PowerCentre: The Megatrends Shaping Asia’s Economic Leadership in a Post-Covid World, UOBAM, 1 March 2022, https://www.uobam.com.sg/insights/2022-investment-outlook.page?path=data/uobam/2022-io
4SOLHERO consists of stocks of 30 to 40 companies generating income from video games and e-sport related businesses, including the producers of software and hardware, distributors, streaming service providers and tournament organisers.
