State Street named service provider for new T. Rowe Price active ETFs

The active ETF market continues to grow, as does State Street’s ETF servicing business through new mandate wins.

By Jonathan Watkins

State Street has extended its partnership with T. Rowe Price by providing services for a set of new active exchange-traded funds (ETFs).

As part of the agreement, State Street will provide services including basket creation, dissemination, settlement, custody, fund accounting, order-taking, financial reporting, performance and investment analytics and transfer agency services to T. Rowe Price’s suite of funds.

State Street is currently the largest global ETF servicer, servicing close to 70% of US ETF assets. 

The custodian has announced a handful of deals in recent months including mandates with Fidelity, Water Island Capital and American Century Investments.

“It’s great to see this partnership continue to evolve and grow over the years. We’re excited to now use our expertise in ETF servicing for T. Rowe Price to make sure its investors and portfolio managers are given a best-in-class experience in this market sector,” said Frank Koudelka, global ETF product specialist at State Street.

Rowe Price was the first investment manager to create and file with the Securities and Exchange Commission (SEC) for a model that allows ETFs to be actively managed. In a relatively short lifespan, global assets in the active ETF and ETP market have reached $183 billion according to data from ETFGI.

Subsequently, on 13 August, Global Custodian is hosting a webinar  – Is the active ETF market set to boom? – featuring speakers from Invesco, BNY Mellon and RBC, which is free to listen to.

“As investor needs and expectations continue to evolve, we want to provide additional choice through active ETFs. We are excited to work with State Street in the delivery of active ETFs supported by the highest level of service,” said Tim Coyne, head of ETFs at T. Rowe Price.