LGIM joins ETF market with platform acquisition

LGIM is building on its existing passives range by joining the $4.6trn ETF market with the acquisition of the Canvas platform from ETF Securities.

Canvas holds $2.7bn AUM and 17 products across equity, fixed income and commodities. The UK and Ireland based platform is licensed for distribution in 14 countries.

It follows the sale of ETF Securities’ European business to WisdomTree this week, representing $18bn AUM.

Legal & General Investment Management chief executive Mark Zinkula notes 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.”

Zinkula says they will leverage the scale of their $431bn index business to develop ETF solutions that complement their existing range of passive funds.

LGIM will manage and distribute the majority of ETFs, although it will also work with partners. Canvas employees with specialist ETF skills will join LGIM as part of the transaction.

LGIM hopes to grow its market share in retail and institutional, Zinkula says. “This is a natural step in our strategy to develop products for a wider audience.”