Daiwa Securities Group increases stake in Global X LLC

Daiwa Securities Group (TSE:8601) announced it has acquired a 20% stake in Global X LLC, effective February 21, 2025. The move follows the conversion of convertible bonds, initially issued in February 2020 with a Daiwa investment of $120 million, into units of Global X LLC. Global X LLC, established in 2008 and managing over $53 billion in assets as of the end of December 2024, specializes in thematic growth, income-focused, core, and commodities-based ETFs. This acquisition strengthens the partnership between Daiwa Securities Group and Global X LLC, furthering Daiwa's strategic goals outlined in its "Passion for the Best" 2026 management plan, which emphasizes enhancing asset management and transforming its business model. Daiwa Securities Group aims to capitalize on Global X LLC's success in the U.S. ETF market, with plans to expand its asset management business. The initial financial impact on Daiwa is expected to be limited.