State Street Corporation (NYSE: STT) recently announced that it has begun working with Capital Group on “servicing of the investment management firm’s first actively managed exchange traded funds (ETF) that launched in February 2022.”
As part of the appointment, State Street is “providing ETF basket services, fund accounting, fund administration, order-taking and transfer agency services.”
Frank Koudelka, Global ETF Product Specialist at State Street, stated:
“We’re very excited to be working with Capital Group on the launch of their first active ETFs. The State Street team began our initial ETF engagement with Capital Group when they formed an ETF Working Group to research the market and we are very pleased to see that our partnership has been an important aspect to enable Capital Group’s foray into ETFs.”
Capital Group launched its first actively managed ETFs, “including one fixed income core plus income strategy, three equity strategies that invest primarily in the US, and two equity strategies that cover international and global, respectively.”
The funds are listed on the New York Stock Exchange:
- Capital Group Core Plus Income ETF (CGCP)
- Capital Group Growth ETF (CGGR)
- Capital Group Core Equity ETF (CGUS)
- Capital Group Dividend Value ETF (CGDV)
- Capital Group International Focus Equity ETF (CGXU)
- Capital Group Global Growth Equity ETF (CGGO)
Bryan Nielsen, director of ETF operations, Capital Group, remarked:
“Capital Group is pleased to be working with State Street, an innovative leader in the ETF industry, for the launch of these investment strategies. Their track record with ETFs coupled with their consultative approach made them an ideal service partner.”
State Street continues to be “an industry leader servicing over $6.1 trillion in ETF assets, which is close to 60% of global ETF AUM.”
Additionally, State Street services “close to 70% of ETF AUM in the United States.”
As reported in March 2022, State Street Corporation announced that State Street Digital, the company’s dedicated Digital unit, has entered into a licensing agreement with Copper.co, a London-headquartered provider of institutional digital asset custody and trading infrastructure.
State Street Digital will “leverage Copper.co’s technology to develop and, subject to receipt of regulatory and other approvals, launch an institutional grade digital custody offering where clients can store and settle their digital assets within a secure environment operated by State Street.”
The company will “leverage its robust infrastructure and vast experience to assist clients’ transition and thrive in the new digital economy.”