Legal and General Investment Management (LGIM) is the UK’s largest asset manager with over $1.2trn of AUM and one of its key arms in now the ETF side. Indeed, ETFs are becoming increasingly popular in Europe and the investment giant is looking to capitalise on this boom. In fact, it recently announced the completion of the acquisition of Canvas, a European platform of exchange-traded funds (ETF), previously owned by ETF Securities (ETFS). The operation represents “an important step in the process of expansion of LGIM in Europe and further strengthens its capabilities”, underlines a note. Moreover, the company noted that the growing propensity of the ETF market to move towards more thematic strategies appears in line with LGIM’s current focus on the long-term themes that are shaping the investment landscape: energy transition, technology and demographic changes. Mark Zinkula, CEO of LGIM, appeared satisfied with the acquisition which was first announced in November 2017. He highlighted that the deal allows Legal and General Investment Management “to cater to a growing base of clients across Europe and further grow our market share in both retail and institutional markets”. The manager added: “We are well positioned to leverage the scale of our $431bn index business to develop ETF solutions that complement our existing range of index funds.” Through this operation, LGIM took over the Canvas platform and the related infrastructure for ETFs as well as $2.7bn AUM and 17 products across equity, fixed income and commodities listed on several European stock exchanges, authorized for distribution in 14 European countries. The acquisition is bound to benefit the British giant as it broadens Legal and General’s current product offering, in particular by strengthening its brand and track record in indexed funds. Moreover, this addition is predicted to further accelerate the growth of the asset manager by ensuring geographical, product and strategic diversification.
Asset manager Legal & General is joining the growing market for exchange-traded funds with its acquisition of L&G platform Canvas. European ETF said the purchase from ETF Securities is part of its expansion in Europe and fits the company's focus on new products shaping the investment market. The deal will see European ETF assume management of about $2.7bn of assets.