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LGIM buys $2.7bn ETF platform

Legal & General Investment Management (LGIM) is the latest asset manager to venture into the ETF space. The British company has bought the $2.7bn (€2.3bn) European ETF platform run by ETF Securities. The acquisition is part of a wider push into Europe by LGIM.

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The platform, called Canvas, has its own ETFs, while also allowing partners to launch and manage their own products. “The platform will remain open architecture for differentiated products and for the large majority of ETFs,” said LGIM.

The acquisition is part of a wider push into Europe. “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,” said Mark Zinkula, LGIM CEO.

LGIM is only the latest asset manager in a growing list to acquire its own ETF capability. This year alone, Invesco has bought two ETF providers in Europe (Guggenheim’s ETF arm and London-based Source), and JP Morgan AM and Franklin Templeton have launched a suite of European ETFs.

ETF Securities pulls out of Europe

The sale of its European ETF platform to LGIM is ETF Securities’ second major deal in two days. On Monday, the company announced it had sold its commodity, currency and short- and leveraged ETF business to US asset manager WisdomTree, though ETF securities will receive an 18% share in WisdomTree as part of the transaction.

The disposals come as ETF Securities founder Graham Tuckwell intends to move back to Australia to “be closely involved with the expansion of the company’s Australian business” which has assets under management of $2.62bn. ETF securities also retains a small business in the US ($0.65bn), but will have no assets left in Europe after completion of the above deals.