Legal & General Investment Management (Holdings) Limited (LGIM) has successfully completed the acquisition of Canvas, the European Exchange Traded Fund (ETF) platform formerly owned by ETF Securities.
The successful completion of the transaction marks a significant milestone in LGIM’s expansion into Europe, further strengthening its current capabilities and giving clients access to a suite of established and distinct ETF strategies.
The growing trend in the ETF market towards more thematic strategies also aligns with LGIM’s existing focus on the long-term themes that are shaping the investment landscape, such as the energy transition, technology and demographics.
Mark Zinkula, LGIM CEO, said: “With deep expertise in delivering a diverse and innovative range of client solutions, Legal & General Investment Management will now offer a compelling range of ETFs alongside its existing index funds. This was the right opportunity to expand our capabilities and ensure we can meet client demand in this rapidly growing market.”
The acquisition, which was first announced in November 2017, includes the Canvas platform and embedded infrastructure for ETFs, as well as $3.26bn (€2.86bn)* of AUM across 20 products listed on multiple European stock exchanges and licensed for distribution in 14 European countries. The deal builds on LGIM’s current product offering, particularly its brand strength and track record in index funds, and further accelerates LGIM’s growth providing it with product, strategy and geographical diversification.
The existing Canvas range offers investors access to popular thematic investments in the disruptive technology space, alongside other innovative products from a variety of investment partners. LGIM will continue to grow the platform, adding its own products to the range later this year. Existing clients will still be able to benefit from the platform’s differentiated range of ETF solutions and services delivered by the same team of leading portfolio managers.
Howie Li, former CEO of Canvas, has relocated to LGIM’s London offices with the existing Canvas team. Howie said: “The combination of LGIM’s breadth and scale, coupled with the specific ETF expertise that the Canvas team brings, signals an exciting new phase for both parties. We look forward to working together to deliver the best outcomes for both existing and new clients.”