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LGIM enters the ETF market through platform acquisition

LGIM  enters the ETF market through platform acquisition

Legal & General Investment Management (LGIM) has entered the exchanged traded fund (ETF) market with the acquisition of ETF Securities’ platform, Canvas, for an undisclosed sum.

The deal will provide LGIM with 17 products with $2.7 billion of assets under management, as well as the infrastructure to launch additional funds in both the UK and Ireland. The ETF Securities platform also has listing arrangements on multiple European stock markets and distribution arrangements in 14 countries.

LGIM, which has $1.2 trillion of assets under management, said the move will broaden both its range of capabilities and its geographic reach.

CEO Mark Zinkula (pictured) said: ‘Legal & General is a leader in product innovation and we are constantly exploring ways to deliver new investment solutions for our clients. 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 $431 billion index business to develop an ETF solutions range that complements our existing range of index funds.’

He added: ‘This is a natural step in our 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.’

The announcement follows the news earlier this week that WisdomTree is to acquire ETF Securities’ $18 billion European commodity, currency and short and leveraged division in a $253 million (£193 million) deal.

Passive giant LGIM is not the only late entrant into the ETF market, with Fidelity International launching its first smart beta ETFs earlier this year, and Goldman Sachs joining the fray in September 2015.



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