According to Legal & General Investment Management (LGIM), Canvas is a platform comprising an Irish-based Ucits fund and a UK-based investment manager.
LGIM said the acquisition will give its clients access to one of the fastest growing segments in asset management and will broaden the company’s geographical reach and product range.
The sale is expected to close in 1Q18, following the necessary regulatory approval.
ETF Securities also announced this week that it has sold its European exchange-traded commodity, currency and short-and-leveraged business to WisdomTree Investments. The business being sold comprises all the European operations excluding Canvas.
It was confirmed to International Adviser that ETF Securities has pulled out of Europe and now only has operations in the US and Australia,
Wider audience strategy
Mark Zinkula, LGIM chief executive, said the acquisition is another step in the company’s 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,” he said.
Business as usual
ETF Securities has confirmed that its current Canvas team will be moving to LGIM as part of the acquisition.
Mark Weeks, UK chief executive of ETF Securities, said the company intends to deliver a seamless handover of the business. “This transaction reflects growing appetite for innovative content ETFs across the industry and is the result of extensive discussions with LGIM on how we can best work together to deliver new and exciting products to our customers.”
At the end of October 2017, the global ETF and exchange-traded product (ETP) market size reached a new record of $4.6trn AUM, with year-to-date flows of $538bn eclipsing 2016’s full year flow record of $391bn.
The US remains the largest region by assets with $3.3trn AUM; however, Europe is growing at a faster pace. Assets invested in ETFs/ETPs listed in Europe reached a new record of $0.8trn, increasing 33.7% in the first 10 months of 2017.
WisdomTree sale
Graham Tuckwell, founder and chairman of ETF Securities, commented on the sale of the remainder of the European business to WisdomTree: “We are pleased to be selling our European exchange-traded commodity, currency and short-and-leveraged business to WisdomTree and to become the largest shareholder in the company.
“I believe this combination creates a uniquely positioned firm which will flourish in the years ahead, continuing to deliver huge value for customers and stakeholders. ETF Securities has a strong cultural fit with WisdomTree as both firms have been built from scratch by teams who have worked closely together for many years and who show an entrepreneurial spirit in seeking to deliver innovative and market leading products for their customers.”
