LGIM says it plans to develop a “broad range of strategies” for the European ETF market. LGIM claims to be the UK’s largest asset manager with over £900bn of assets under management.

The Canvas acquisition includes £2bn AUM and 17 products across equity, fixed income and commodities. The UK and Ireland-based platform is listed on multiple stock exchanges and licensed for distribution in 14 countries.

Canvas offers a range of ETFs working with partners and also directly in a UCITS-compliant ETF format. It manages investments for a number of ETFs on the platform, while also allowing partners to launch and manage their own ETFs. The platform will remain open architecture for differentiated products and for the large majority of ETFs to be managed and distributed by LGIM.

LGIM says the acquisition provides LGIM’s clients with access to one of the fastest growing segments in asset management, broadening LGIM’s geographical reach and product range.

Mark Zinkula, LGIM chief executive, said: “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 $431bn (£329bn) index business to develop ETF solutions that complement our existing range of index funds.”

“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.”

A team of Canvas employees with specialist ETF skills will join LGIM. The transaction is subject to regulatory approval.