Several executives left, ETFs were liquidated, and Global X was in a state of “retrograde”

At least six executives have left Global X ETFs in the past three months, creating chaos at the $42 billion fund manager known for its thematic ETFs.

Jon Maier, Chief Investment Officer, Global X

A company spokesman said Global X Chief Investment Officer Jon Maier and Chief Financial Officer Ronnie Riven have decided to resign from their positions and both will remain in place for a transition period.

According to public information, Jon Maier joined Global X from Merrill Lynch in 2017. Maier is a legend in the ETF industry, helping to increase the assets in Merrill Lynch's model portfolios from less than $1 billion to more than $40 billion, and these strategies earned the title of "Maier Model".

The replacement of Global X's senior management began at the end of last year.

Last November, CEO Luis Berruga decided to leave, and COO John Belanger left Global X a week later. Then, in December, HR chief Crystal Christy and Bruno Stein, who was in charge of Brazil, left.

The executive changes have raised concerns among Global X employees about the growing influence of its South Korean parent and a clash of two cultures, according to people familiar with the matter. Global X was acquired by asset management giant Mirae Asset Global Investments in 2018.

Mirae late last year appointed Thomas Park, nephew of Mirae founder Park Hyeon-Joo and co-CEO of Mirae's U.S. business, as interim CEO of Global X. Shortly after he took over, Global X laid off about 10% of its employees.

The layoffs primarily affected the digital assets team, people familiar with the matter said.

Global X, an early contender for one of the first U.S. spot bitcoin ETFs, withdrew its application last month after 10 other funds were successfully launched.

The fund manager also said in January it would liquidate 19 ETFs, which will stop trading next week. The closures include ETFs focused on the Chinese market and thematic funds that offer exposure to everything from the cannabis industry to health and “green buildings.”

"While leadership changes can be difficult for any business in the short term, Global X is integral to Mirae Asset's future and growth and we remain committed to being an innovative leader in the global ETF industry," the spokesperson said.

Global X is the 14th-largest ETF issuer in the U.S., behind only Fidelity Investments , according to data provider VettaFi. It has had success offering niche funds but has chosen not to compete with big asset managers such as BlackRock and State Street Corp. on low-cost, broad stock market funds.

Global X’s assets have surged from $5 billion in 2017 on the back of popular income-focused thematic strategies, and the firm is a “pioneer and industry leader” in those strategies, with profitability set to be achieved in 2023, said Todd Rosenbluth, head of research at VettaFi.

Global X’s largest fund invests in Nasdaq-100 stocks while also selling options in a covered call strategy designed to generate additional income for investors. It also operates popular stock funds focused on infrastructure development, robotics and artificial intelligence.

Mirae, based in Seoul and founded in 1997, manages about $600 billion in assets. Earlier this year, it sold a minority stake in Global X to Tokyo-based Daiwa Securities Group, an investment structured as $120 million in convertible bonds that could convert to a minority stake in the ETF asset manager in 2025.