State Street has been appointed ETF servicing agent and 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.
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 the funds. In addition, State Street, through its affiliated broker dealer within its Global Markets division, will also serve as the first 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.
Last year American Century awarded State Street the mandate to administer five low cost funds from its new unit, Avantis Investors.