Leading global law firm Baker McKenzie advised Daiwa Securities Group Inc. in its investment in Global X Management Company Inc.(Hereinafter referred to as “Global X”), the New York-based provider of exchange-traded funds. The investment is structured as a $120 million convertible bond, which Daiwa Securities Group Inc. can choose to convert to a minority equity stake in Global X in five years. This investment comes as a further alignment of the two companies, who previously announced in September of 2019 the formation of a joint venture, Global X Japan, to deliver intelligent investment solutions to Japanese investors.

The US ETF market, which currently holds more than half of worldwide ETF assets, provides a wide range of investors with access to low-cost and efficient investment solutions. Japan’s ETF market is the third largest in the world, yet ETF adoption remains in its early stages. This investment, coupled with the joint venture, will lay the foundation to meet the accelerating demand from Japanese investors for ETF products. 

Daiwa Securities Group Inc. has been developing products and service platforms that meet the needs of a wide range of investors. By further collaboration with Global X, which has an excellent track record for leadership in thematic investing, the Group is well-positioned to offer differentiated ETF solutions to its individual investor customers. Daiwa Securities Group Inc. will provide strong support to the progression “from savings to asset building” in Japan.

The Baker McKenzie team was led by Steven Canner, Andrew Sagor, Airi Hammalov, Santiago Corcuera, Andrew Cohen (New York) and Toshio Ibaraki, Kana Itabashi and Satoshi Abe (Tokyo).

Baker McKenzie is one of the leading firms for cross-border transactions, providing strategic advice on deals involving the world’s leading financial institutions and multinational companies. From deal inception to business integration, we provide an end-to-end service that helps clients bridge the gap between aspiration and achievement.

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