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.”
Legal & General Investment Management
Legal & General Investment Management (LGIM) is one of the UK’s largest asset managers and a major global investor, with total assets under management of $1,235bn (€1,0828bn)*. We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
Throughout the past 40 years we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
The value of investments is not guaranteed and can fall as well as rise.
* LGIM internal data as at 30 June 2017 converted at a GBP/USD exchange rate of 1.299, including derivative positions and advisory assets. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor.
Legal & General Group
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with a number of growing businesses in the US and in other countries. At 30th June 2017, we had over $1,235bn (€1,0828bn) in total assets under management. Over fifteen million people worldwide rely on us to help them save for the future and to protect their families and their homes.
We work with companies and pension trustees to help people build security in retirement, being the UK’s largest investment manager for UK corporate pension schemes, a major provider of auto-enrolled pensions and a market leader in pensions de-risking. We have also made a commitment to invest around $19.5bn (€17.1bn) in direct investments, with $15.6bn (€13.7bn) already invested in areas such as homes, urban regeneration, clean energy and small business finance, driving economic growth and making a positive difference to the UK’s built environment.
Canvas is a leading, scalable UCITS-compliant, European Exchange Traded Fund (ETF) platform which has the flexibility to build on in-house capabilities as well as work with other partners to launch new and innovative ETFs. The Canvas product range is registered for distribution in 14 countries: Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Norway, Spain, Sweden, Switzerland, The Netherlands, and the UK.