State Street to Provide ETF Servicing to American Century Investments for First Semi-Transparent ETF Suite
April 02 2020 - 10:00AM
Business Wire
Firm also announces it will be first Authorized Participant
Representative in the ActiveShares ecosystem
State Street Corporation (NYSE:STT) today announced that it has
been appointed ETF servicing agent and also has been appointed to
serve as first Authorized Participant Representative (APR) for
American Century Investments’ new range of semi-transparent,
actively managed ETFs. American Century Investments is the first
asset manager to receive regulatory approval for two investment
strategies, Focused Large Cap Value and Focused Dynamic Growth,
both of which will be available through ActiveShares®, its
semi-transparent active ETF vehicle.
American Century Investments will utilize Precidian Investments'
ActiveShares® methodology. The structure will allow American
Century Investments 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 ETFs opens a whole new
category of opportunity for active managers and investors. We are
delighted to be working with American Century Investments 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.
As part of the agreement, State Street will provide services
including basket creation, dissemination, settlement, custody, fund
accounting, order-taking, financial reporting and transfer agency
services to American Century Investments' new suite of funds. In
addition, State Street, through its affiliated broker dealer within
its Global Markets division, will also serve as the first
Authorized Participant Representative (APR) in the ActiveShares
ecosystem. The APR is a new and pivotal role, serving as agent for
the execution of the underlying confidential portfolio holdings,
and standing in between the Authorized Participant and the
Investment Manager to protect the confidentiality of the portfolio
holdings.
“We believe that semi-transparent ETFs expand the opportunity
set to managers and strategies that had previously not been
available, providing additional choices for investors,” said Ed
Rosenberg, senior vice president and head of Exchange Traded Funds
for American Century Investments. “We are pleased to be the first
to provide investment strategies in these new vehicles and to work
with State Street, whose established track record in the exchange
traded ecosystem and global footprint with local expertise, made it
an ideal service partner.”
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 assetsi, and is the only
provider serving all major ETF regions.
About State Street Corporation
State Street Corporation (NYSE: STT) is the world's leading
provider of financial services to institutional investors including
investment servicing, investment management and investment research
and trading. With $34.36 trillion in assets under custody and
administration and $3.12 trillion* in assets under management as of
December 31, 2019, 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 December 31, 2019 includes
approximately $45 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.
3021564.1.1.AM.RTL Expiration Date: 3/31/2021
i Statistics compiled using ETFGI’s ETF Monthly Insights as-of
December 2019 and State Street’s internal research
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version on businesswire.com: https://www.businesswire.com/news/home/20200402005526/en/
Zarna Patel 617 756-2911 zpatel@statestreet.com
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