State Street to Provide ETF Servicing to Fidelity for First Semi-Transparent ETF Suite Utilizing Proxy Basket Structure

BOSTON--(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.

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Expiration Date: 6/30/2021

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