Legal & General Investment Management buys ETF platform Canvas

The FTSE 100 company said the acquisition included the platform and embedded infrastructure for ETFs, as well as $2.7bn of existing assets across 17 products and partnerships in equity, fixed income and commodities.

It said the UK and Ireland-based platform was listed on “multiple” stock exchanges and licensed for distribution in 14 European countries, and would enable LGIM to develop a “broad range” of strategies in the European ETF market.

Canvas was described by the Legal & General board as a platform which 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, while also allowing partners to launch and manage their own ETFs on the platform.

LGIM - the UK's largest asset manager with more than $1.2trn assets under management, including $45bn of European assets under management - with the board claiming the acquisition would provide new and existing clients with access to “one of the fastest growing segments” in asset management.

It said it would broaden LGIM's geographical reach, product capabilities and expertise, enabling it to provide more solutions to help clients achieve their investment objectives.

The transaction remained subject to regulatory approvals.

“Legal & General is a leader in product innovation and we are constantly exploring ways to deliver new investment solutions for our clients,” said LGIM CEO Mark Zinkula.

“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 business to develop an ETF solutions range that complements our existing range of index funds.”

Zinkula said the acquisition was a “natural step” in the firm’s 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.”