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

06/09/2020

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.

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.
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Expiration Date: 6/30/2021

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Brendan Paul
401 664-9182
BPaul2@StateStreet.com

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