Mirae Asset acquires Australian robo-advisor Stockspot

[Courtesy of Stockspot]

South Korea’s Mirae Asset Global Investments Co. on Wednesday announced its acquisition of Stockspot, a leading robo-advisor based in Australia. This transaction not only solidifies Mirae Asset’s foothold in the Australian market but also represents a significant milestone as the first instance of a Korean financial group acquiring an overseas specialist in the robo-advisory field.

The deal involves Mirae Asset’s acquisition of an initial 53 percent stake in Stockspot, amounting to A$28 million ($18 million). The remaining stake is subject to an option agreement that will be determined within a predefined timeframe.

Founded in Sydney in 2013, Stockspot has established itself as Australia’s premier robo-advisor specialist. The company manages assets reaching approximately 650 million Australian dollars as of June. Robo-advisors, a fusion of “robot” and “advisor,” leverage AI-driven algorithms and extensive data analysis to curate and manage investment portfolios tailored to individual investment preferences. Stockspot capitalizes on its proprietary algorithms to deliver a comprehensive suite of services, encompassing investment advisory and portfolio management, to both individual and institutional investors in the Australian market. Bolstered by a substantial client base of 13,000 investors, the company has cemented its position as a recognizable and respected brand.

Mirae Asset, which has been pursuing acquisitions of robo-advisor operators for several years, is now positioned to make a significant entry into the financial market infused with AI-based services through the acquisition of Stockspot.

The global financial market is increasingly recognizing the potential of businesses leveraging AI such as robo-advisors. Notably, leading asset management firms like BlackRock acquired FutureAdvisor in 2015, and Goldman Sachs acquired U.S. retirement pension-focused robo-advisor Honest Dollar in 2016.

A mobile screen image of a virtual customer’s account. [Courtesy of Stockspot]

Celebrating its 20th year of international expansion and its 17th year in the ETF market, Mirae Asset has emerged as a premier global financial institution, overseeing 287 trillion won across 14 regions worldwide, including the U.S., Canada, Australia, and Hong Kong. Its impactful presence is driven by its active participation in ETFs, with more than 540 global ETFs under its management, boasting a total net asset value of a remarkable 130 trillion Korean won as of the end of July. This places Mirae Asset ahead of the entire domestic ETF market valued at 100 trillion won.

Building upon its growth through international and ETF market expansion, Mirae Asset is committed to leading the future financial landscape. This involves leveraging AI to introduce a diverse array of products in global markets, including the U.S. and Europe.

Furthermore, Mirae Asset intends to capitalize on synergies between Stockspot, Mirae Asset Australia and its ETF management company Global X Australia for a significant foothold in Australia’s pension market.

Earlier, Mirae Asset displayed proactive investment in the Australian market, including the acquisition of Four Seasons Hotel Sydney in 2013. Australia, ranking fourth globally after the U.S., the U.K., and the Netherlands, holds a substantial pension market. Stockspot currently provides advisory services for self-managed super fund (SMSF) accounts, which constitute around 30 percent of the Australian pension market. The company plans to introduce various advisory portfolios related to pensions in the future.

Stockspot founder and CEO Chris Brycki conveyed his sense of honor and enthusiastic anticipation regarding the company’s future growth to be driven by Mirae Asset’s strategic investment.

Mirae Asset Financial Group’s founder and Global Strategy Officer (GSO) Park Hyeon-joo emphasized that the acquisition of Stockspot represents more than just a move to target the Australian market. Instead, it stands as a pivotal opportunity to proactively explore and tap into the AI and robo markets on a global scale within the dynamic landscape of the financial industry.