State Street to Provide ETF Servicing to Fidelity for First Semi-Transparent ETF Suite Utilizing Proxy Basket Structure
June 09 2020 - 9:30AM
Business Wire
State Street Corporation (NYSE:STT) today announced that it has
been appointed ETF servicing agent for Fidelity Investments new
range of semi-transparent, actively managed ETFs. Fidelity is the
first asset manager to receive regulatory approval for three
investment strategies, Fidelity Blue Chip Growth ETF (FBCG),
Fidelity Blue Chip Value ETF (FBCV) and Fidelity New Millennium ETF
(FMIL), which will be available through Fidelity’s proprietary
proxy basket methodology. The structure will allow Fidelity to
deliver its actively-managed investment strategies in these ETF
vehicles without the daily holdings disclosure requirement of fully
transparent ETFs.
“The approval of semi-transparent proxy basket ETFs opens a new
avenue for active managers to offer investment strategies, while
protecting its intellectual property. We are excited to be working
with Fidelity on this unique offering and look forward to using our
extensive experience, expertise, and innovative ETF servicing
technology to support the firm with this exciting new product,”
said Frank Koudelka, global ETF product specialist at State
Street.
State Street will provide services including basket creation,
dissemination, settlement, custody, financial reporting, fund
accounting, order-taking, performance and investment analytics and
transfer agency services to Fidelity’s new suite of funds.
“Fidelity is pleased to work with State Street, an innovative
leader in the exchange traded fund ecosystem,” said Greg Friedman,
Fidelity’s Head of ETF Management and Strategy. “Leveraging our
heritage of active management, we believe that our new active
equity ETFs and methodology will help asset managers offer
differentiated strategies that had previously been unavailable in
the ETF investment wrapper. We are also excited to offer the
opportunity to license our active equity ETF technology.”
State Street has serviced ETFs since their inception more than
twenty years ago. Today, the firm is the largest global ETF
servicer, servicing close to 70% of US ETF assets, and is the only
provider serving all major ETF regions.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $31.86 trillion in assets
under custody and/or administration and $2.69 trillion* in assets
under management as of March 31, 2020, State Street operates
globally in more than 100 geographic markets and employs
approximately 39,000 worldwide. For more information, visit State
Street's website at www.statestreet.com.
*Assets under management as of March 31, 2020 includes
approximately $50 billion of assets with respect to which State
Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as
marketing agent; SSGA FD and State Street Global Advisors are
affiliated.
Investing involves risk including the risk of loss of
principal.
The information provided does not constitute investment advice
and it should not be relied on as such. It should not be considered
a solicitation to buy or an offer to sell a security. It does not
take into account any investor's particular investment objectives,
strategies, tax status or investment horizon. You should consult
your tax and financial advisor. All material has been obtained from
sources believed to be reliable. There is no representation or
warranty as to the accuracy of the information and State Street
shall have no liability for decisions based on such
information.
The views expressed in this material are the views of State
Street through the period ended May 27, 2020 and are subject to
change based on market and other conditions.
This news announcement contains forward-looking statements as
defined by United States securities laws, including statements
about the financial outlook and business environment. Those
statements are based on current expectations and involve a number
of risks and uncertainties, including those set forth in State
Street's 2015 annual report and subsequent SEC filings. State
Street encourages investors to read the corporation's annual
report, particularly the section on factors that may affect
financial results, and its subsequent SEC filings for additional
information with respect to any forward-looking statements and
prior to making any investment decision. The forward-looking
statements contained in this press release speak only as of the
date hereof, June 8, 2020 and the company will not undertake
efforts to revise those forward-looking statements to reflect
events after this date.
State Street Corporation One Lincoln Street, Boston, MA
02111-2900. The whole or any part of this work may not be
reproduced, copied or transmitted or any of its contents disclosed
to third parties without State Street’s express written
consent.
© 2020 State Street Corporation - All Rights Reserved
Expiration Date: 6/30/2021
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Brendan Paul 401 664-9182 BPaul2@StateStreet.com
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