Aucnet Acquires SG e-Auction To Bolster Luxury Resale Business In ASEAN, Oceania

KUALA LUMPUR, May 15 (Bernama) -- Aucnet Inc (Aucnet), a Tokyo-based circular market design company, has announced the full acquisition of its Singapore joint venture, SG e-Auction Pte Ltd (SG e-Auction), as part of its strategic push to expand its global resale network in ASEAN and Oceania.

SG e-Auction operates a second-hand luxury goods distribution business in Singapore and the broader ASEAN region. With this move, Aucnet aims to strengthen its international client base and local market presence, further establishing itself as a key player in the global fashion resale industry.

The acquisition aims to accelerate the expansion of SG e-Auction's network across the ASEAN region while enhancing services for its 400 existing members. It also seeks to scale distribution activities throughout ASEAN and Oceania, with Singapore serving as a key strategic hub.

Additionally, the move is designed to foster the growth of Aucnet’s broader fashion resale ecosystem, which includes Aucnet Consumer Products Inc (ACP), Gallery Rare Ltd, and Defactostandard Ltd.

The acquisition of SG e-Auction marks the next step in Aucnet’s global expansion strategy. The company plans to rename the subsidiary Aucnet Asia Pacific (tentative), reflecting its regional ambitions.

According to a statement, “Aucnet Asia Pacific” will focus on increasing international clientele and promoting more efficient cross-border distribution in the high-demand luxury resale sector.

Founded in 1985, Aucnet pioneered the world’s first real-time used car auction and has since expanded into various sectors, including pre-owned digital devices, motorcycles, and luxury goods.

The company launched ACP in 2015 to focus specifically on the fashion resale market. Today, ACP operates one of Japan’s largest online luxury brand auction platforms, partnering with over 5,500 companies worldwide and handling over 52 billion Japanese yen in annual transactions. (100 Japanese yen = RM2.92)

Aucnet has steadily grown its fashion resale portfolio through key acquisitions, including Gallery Rare in 2020 and Defactostandard (operator of Brandear) in 2024. Its international footprint widened further in 2022 with new offices in Los Angeles and Copenhagen.

-- BERNAMA

ETFS ENTER 'OVERDRIVE' IN 2025, TRACKINSIGHT SURVEY REVEALS

KUALA LUMPUR, May 13 (Bernama) -- Trackinsight, a global leader in exchange-traded fund (ETF) research and analytics, has released its Global ETF Survey 2025 Report, highlighting regional analysis covering major developments in Europe, Asia, and North America.

The report also unveils key trends across active management, fixed income, thematic investing, environmental, social, and governance (ESG) strategies, and the accelerating rise of income- and options-based ETFs, among others. It also features over 80 forward-looking predictions from industry leaders.

According to the report, respondents primarily turn to ETFs for diversification, cost efficiency, and ease of trading. When selecting products, they prioritise performance, fees, liquidity, and the reputation of the provider, while ESG considerations tend to be secondary.

In addition, the rising use of active ETFs is driven by lower fees compared to mutual funds, greater transparency, and the potential for outperformance, with nearly 70 per cent of respondents planning to increase their allocations to active ETFs over the next six months.

Corporate and government bond ETFs are the top choices, with respondents showing a balanced preference between active and passive strategies, in which 80 per cent of respondents also plan to boost their exposure to actively managed fixed income ETFs in the coming months, according to a statement.

Furthermore, respondents use thematic ETFs mainly for diversification and to make long-term strategic investments, particularly in disruptive technology and digital infrastructure. Liquidity, cost, and risk-return profiles are the key selection factors, and more than half of respondents intend to increase their allocations to thematic ETFs.

The survey also reveals that investments in ESG ETFs are largely driven by personal convictions and environmental priorities. However, greenwashing and transparency concerns remain major challenges.

Titled ETF Industry on Overdrive: Shifting Gears, Breaking New Barriers, the report captures evolving trends in the global ETF space, drawing from insights provided by over 600 professional investors and is powered by Trackinsight’s extensive database of over 12,000 exchange traded products (ETPs).

A subsidiary of Kepler Cheuvreux, Trackinsight is a global platform for professional ETF investors, delivering top-tier data, tools, research, and expertise for advanced fund selection and portfolio optimisation.

-- BERNAMA

AM BEST CITES UNDERWRITING VOLATILITY IN KOREA P&I CLUB'S OUTLOOK REVISION

KUALA LUMPUR, May 13 (Bernama) -- AM Best has revised the outlook to negative from stable for the long-term issuer credit rating (Long-Term ICR) and affirmed the financial strength rating (FSR) of B++ (Good) and the long-term ICR of “bbb+” (Good) of Korea P&I Club (KP&I).

The outlook of the FSR is stable, and the credit ratings (ratings) reflect KP&I’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The global credit rating agency in a statement said the ratings also reflected the wide range of support that the company receives from the South Korean government.

The Long-Term ICR outlook revised to negative from stable reflects increased pressure on KP&I’s operating performance, following its sizeable net loss reported in 2024, which notably deviated from AM Best’s expectations.

KP&I experienced two exceptionally large claim losses last year, which led to a record annual 7.3 billion Korean won net loss and a combined ratio of 204 per cent in 2024. (1,000 South Korean won = RM3.03)

This elevated concern regarding underwriting volatility and high susceptibility of its bottom line to the large claims under the current structure of a small premium base, high net retention level, and a loss-sensitive commission scheme.

Furthermore, KP&I’s risk-adjusted capitalisation is assessed at the strongest level, as measured by Best’s Capital Adequacy ratio, and is expected to remain at that level over the intermediate term.

Despite a moderate drop in available capital following a significant net loss in 2024, the company’s balance sheet strength is supported by its low underwriting leverage and a highly conservative investment portfolio.

Underpinned by its strategic role to support the long-term development of maritime infrastructure in South Korea, KP&I receives a wide range of government support across various areas, including subsidies, corporate tax exemptions, and a no-dividend payout policy to its members.

-- BERNAMA