State Street has been appointed by Avantis Investors to provide a range of services for five newly launched low-cost exchange traded funds (ETFs), including custody, transfer agency and fund administration.
Avantis Investors, a new unit within American Century Investments, said it has amassed more than $400 million in total assets in the ETFs through the end of October.
The funds were launched in late September on the NYSE Arca trading platform.
The win further strengthens State Street’s position as the largest asset servicing provider for ETFs, with the custodian boasting high profile clients including BlackRock’s iShares, Vangaurd and VanEck.
The meteoric rise in the ETF market has established a new battleground for custodians to compete for business with BNY Mellon, State Street, and JP Morgan, being the largest asset servicing benefactors from the trend.
“Our agreement with Avantis Investors underscores the scale and expertise of our ETF team and the power of our ETF servicing technology,” said Frank Koudelka, senior vice president & global ETF product specialist at State Street. “Our top priority is to provide strategic advice and partnership to our clients and we couldn’t be more excited to work with Avantis on their suite of low-cost ETFs.”
State Street will also provide basket creation and accounting to Avantis Investors.
“We are very pleased to extend our relationship with State Street and their experienced ETF servicing team to bring these strategies’ to market,” commented Ed Rosenberg, senior vice president and head of exchange traded funds.