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State Street to provide servicing for Fidelity’s semi-transparent ETF suite


State Street Corporation (NYSE:STT) 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,” says 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,” says 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.”

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