Two top Global X executives exit

Kanish Chugh
Global X ETFs - Head of Distribution
Date: 12 September 2023
Position: Head of Distribution
By Karren Vergara

Two senior executives leading distribution and investment strategy respectively have exited Global X ETFs amid a local restructure.

Head of distribution Kanish Chugh has been made redundant just shy of 10 years of tenure.

Chugh started out as a business development manager at ETF Securities before it was acquired by Global X in June 2022, and took on more senior roles over the years as co-head of sales and most recently head of distribution.

Prior to Global X, some of his previous sales roles were at BlackRock and Fidelity International.

"Throughout these nine years, I had the privilege of collaborating with many colleagues and industry peers and supporting numerous clients and investors on their ETF journeys," Chugh wrote in a LinkedIn post.

"This rollercoaster ride has been filled with cherished memories and significant accomplishments. We evolved from a modest team of five managing minimal assets to recently surpassing $6 billion in assets under management and introducing over 40 ETFs into the Australian market."Global X ETFs said Chugh's departure is "a result of a restructure designed to position the brand for continued growth and to align our operations with the functional structure of other Mirae Asset-owned investment brands worldwide."

"This decision elevates the importance and growth of two separate sales and marketing teams, while ensuring that our strong culture of collaboration and cooperation are supported," Global X said.

The firm has commenced recruiting for its new head of sales role.

Blair Hannon, who was the head of investment strategy, vacated the role on September 1 after 18 months.

Hannon has joined Macquarie as ETF investment strategist for Australia and New Zealand as the bank builds out its ETF business. Before Global X, he held senior roles at BlackRock and Commonwealth Bank.

Global X said it has "taken the opportunity to refine our attention to the strong investment strategy and research function within Global X that Blair has helped to establish".

Separately, the Global X Semiconductor ETF (SEMI) reduced annual management fees from 0.57% to 0.45%.

NVIDIA, Boardroom Inc, TSMC, ASML, and ADV Micro Device are its top five holdings. One-year returns reached 48.1%, while its benchmark delivered 49%.

"The semiconductor value chain is strategically aligned to seize the current opportunities present and offer a potential investment alternative as the AI thematic advances into new markets," Global X head of thematic solutions Scott Helfstein said.

"The semiconductor industry is expected to unlock a market worth over a hundred billion dollars, due to the surging demand for AI processing and increased investments in specialised chips, giving rise to a new investment cycle opportunity."