Legal & General Investment (Holdings) Limited (LGIM) has acquired Canvas, the European exchange-traded fund platform owned by ETF Securities, in a move designed to broadening LGIM’s geographical reach and product range.
Canvas is a platform that has built a diverse range of ETFs working with partners and directly in a UCITS compliant ETF format. It manages investments for a number of ETFs on the platform, while also allowing partners to launch and manage their own ETFs. The platform will remain open architecture for differentiated products and for the large majority of ETFs to be managed and distributed by LGIM.
The transaction includes the platform and embedded infrastructure for ETFs, as well as $2.7bn of existing assets across 17 products and partnerships.
Mark Zinkula, LGIM CEO, said: “As a leader in product innovation, we are constantly exploring ways to deliver new investment solutions for our clients. The ETF market is one of the fastest growing segments in asset management. A number of long-term macro trends, including the increasing use of passive vehicles and the drive to digitalisation, will lead to a growing demand for ETF products.
“We are well positioned to leverage the scale of our $431bn index business1 to develop ETF solutions that complement our existing range of index funds.
“This is a natural step in our strategy to develop products for a wider audience. The acquisition of Canvas enables us to cater to a growing base of clients across Europe and further grow our market share in both retail and institutional markets. LGIM shares a strong cultural alignment with Canvas and we look forward to working with the team going forward.”