Global X looks to superannuation to boost FUM to $10bn

6 December 2023
| By Laura Dew |
image
image
expand image

ETF provider Global X is targeting $10 billion by the end of 2025 as it looks to the institutional space for uptake by super funds.

Speaking in Sydney, chief executive Evan Metcalf said the firm is looking to raise its assets under management in Australia from $6.2 billion currently to $10 billion by two years’ time. 

This would be achieved by expanding the product range with differentiated offerings, expanding the sales team and reaching more investors.

Metcalf acknowledged Global X is “starting from behind” with a 4 per cent market share compared to other providers, but believes it can catch up. The overall Global X firm has US$46 billion, but this is far smaller than other major ETF providers, such as BlackRock, Vanguard and State Street.

However, Global X’s acquisition by South Korean firm Mirae Asset last June has provided it with greater resources and capacity by being part of a larger parent group. Mirae Asset has also made a $28 million investment in robo-adviser Stockspot.

Metcalf said: “For 2024, we want to build on our existing relationships and bring new products to the market where it is required based on client need for unique and interesting propositions.

“We are starting from behind in terms of resources, so we are looking to catch them up and compete with our peers on revenue, number of investors etc.

“We are not in the business of pursuing price wars, however, we are committed to competing aggressively on price where necessary. We will continue to focus on products that we know have upfront demand and are true to our investor-first philosophy.”

While the firm has the option of bringing funds from Global X’s range in the US to Australia, he said the firm is committed to developing ETFs suitable for the Australian market.

One area they are investigating is the $3.1 trillion superannuation industry and whether they are moving away from active funds in the face of fee pressure, the internalisation of investment teams away from third-party managers and meeting the Your Future, Your Super performance test.

Metcalf remarked: “Superannuation is where the wealth is and we are having interesting conversations on where ETFs can fit in there. They are questioning if there is still a place for active management.”

Manny Damianakis, head of sales at Global X, added: “Most ETF uptake has been direct via SMSFs and by financial advisers, but now we are looking at the insto space as they internalise their investment management. 

“With super funds taking a more hands-on approach, there is a potential for them to look at ETFs and that is an area we are exploring.”
 

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

subscribe

Stay up to date with Australia’s top news and information source for the wealth management industry

MARKET INSIGHTS

sub-bg sidebar subscription

Never miss the latest news and developments in wealth management industry

Chris Cornish

"Past performance is no guarantee of future results" is something ASIC are always keen to say. Yet when it comes to th...

17 hours ago
Stewart Gibson

Wow, distrust in the Government. Who would have thought that people would distrust that merry band of incompetents that ...

1 day 19 hours ago
One foot out the door

“The advice satisfaction has moved up, and that’s about rebuilding trust, delivering on what we say we will do and not m...

6 days 22 hours ago

AustralianSuper and Australian Retirement Trust have posted the financial results for the 2022–23 financial year for their combined 5.3 million members....

7 months 2 weeks ago

A $34 billion fund has come out on top with a 13.3 per cent return in the last 12 months, beating out mega funds like Australian Retirement Trust and Aware Super. ...

7 months ago

The verdict in the class action case against AMP Financial Planning has been delivered in the Federal Court by Justice Moshinsky....

7 months 2 weeks ago