UOB Asset Management (UOBAM) will partner with Mirae Asset Global Investments (Hong Kong) to jointly roll-out ETFs across the region over the next three years.
Under a Memorandum of Understanding signed by the two companies, UOBAM will collaborate with Mirae Asset, the manager of Global X ETFs series, in Hong Kong, Singapore, Taiwan, Thailand, Vietnam, Indonesia and Malaysia.
UOBAM will receive ETF consulting services and training from Mirae, which has expertise in thematic investing and a line-up of 400 ETFs worldwide. The two companies will tap UOBAM’s research into three megatrends in Asia: changing demographics, “go green” and the digital economy.
UOBAM will distribute these ETFs through its established marketing channels.
“Investors will 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,” said Thio Boon Kiat, chief executive of UOBAM.
Thematic funds
Thematic ETFs, which aim to capture the growth of a sector such as clean energy or cloud computing, have gained traction in Asia Pacific. According to ETFGI, total ETF investments in the Asia Pacific (excluding Japan) recorded $543.1bn (£412bn, €494bn), with 2,467 listings on 20 exchanges as at the end of November 2021.
“Among 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,” said Jung-Ho Rhee, chief executive of Mirae Asset Global Investments.
In 2021, UOBAM (Thailand) and Mirae jointly launched the United Hero ETF, which invests in the Global X Video Games and E-sports ETF that tracks the Solactive Video Games & E-sports Index.
Last year, UOBAM also listed on the Singapore stock exchange an Asia Pacific green real estate investment trust ETF, the UOB APAC Green REIT ETF, which attracted around S$80m (£44m, $59m, €53m) in assets during the initial offering period from 5 to 18 November 2021, the firm said.
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