Charles Schwab has selected State Street Corp. to support its eight new exchange-traded funds with custody, fund accounting, fund administration and transfer agency services. Sin e2005, State Street has provided Schwab with custody, fund accounting, fund administration and securities lending services.
“We appointed State Street as our service provider because they emerged as the clear leader for servicing our complex exchange-traded fund structures,” said George Pereira, senior vice president of Charles Schwab Investment Management.
“With the launch of our new funds, which carry industry-leading low expense ratios and free trade commissions at Schwab, we needed a service provider with scale and one that could dedicate resources to ensuring all of the needs of our fund structures were met,” Pereira said.
State Street launched the first-ever ETF in 1993 in partnership with the American Stock Exchange and currently services nearly half of all ETF assets worldwide.
“Investors continue to embrace ETFs for additional liquidity, risk management and global diversification for their investment portfolios,” said Alan Greene, executive vice president of U.S. investor services business at State Street. “We are delighted to expand our servicing relationship with Schwab and value the confidence they place in us to offer the best solution set for their new funds.”
State Street recently published a white paper on ETFs called, “Exchange-Traded Funds: Maximizing the Opportunities for Institutional Investors.”