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BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYSE:STT), one of the world's leading providers of financial services to institutional investors, announced today that it has been appointed by Charles Schwab to service its newly launched family of exchange-traded funds.

State Street will provide the eight new funds with custody, fund accounting, fund administration and transfer agency services. State Street has provided Schwab with custody, fund accounting, fund administration and securities lending services since 2005.

"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."

State Street has been a pioneer in the development and servicing of exchange-traded funds (ETFs) having launched the first ever ETF in 1993 in partnership with the American Stock Exchange. State Street utilizes its leading-edge technology, consultative client approach and flexible servicing model to service ETFs 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 State Street's US investor services business. "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 launched its latest publication on ETFs as part of its Vision series of thought-leadership papers intended to further increase awareness and understanding of key themes and trends facing institutional investors industrywide. The paper, titled "Exchange Traded Funds: Maximizing the Opportunities for Institutional Investors," examines the benefits of these investment tools and the best method to maximize them in institutional investors' investment portfolios.

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $18.8 trillion in assets under custody and administration and $1.9 trillion in assets under management at December 31, 2009, State Street operates in 25 countries and more than 100 geographic markets worldwide. For more information, visit State Street's web site at www.statestreet.com.

    Source: State Street Corporation