abrdn’s new exchange-traded fund--Global Real Estate Active Thematics UCITS ETF--is a sub-fund of abrdn III ICAV, an open-ended umbrella Irish collective asset-management vehicle, according to a dated 1 December 2022. It’s classified as a “light green” article 8 fund under the EU’s Sustainable Finance Disclosure Regulation, which means that it promotes environmental and/or social characteristics. The fund’s goal is to generate long-term growth by investing in real estate investment trusts and company shares of firms involved in real estate activities.
State Street will provide abrdn with custody, fund accounting, order-taking, transfer agency services and ETF servicing, said the company’s .
“State Street is extremely pleased to partner with abrdn on the launch the first of their new active ETF range in Europe, and we look forward to continuing to support the development of further products as abrdn builds its range of offerings in the region,” said Ciaran Fitzpatrick, head of ETF solutions for State Street Europe. “We began working with abrdn two years ago on the planning and strategy for the launch of their ETF range in Europe, and the first product going live marks a great milestone for both firms. Active ETFs are leading the next wave of ETF growth in the European market, and we continue to see strong demand for new offerings and product innovation.”
Active ETFs aim to outperform a benchmark, while ETFs tend to track a specific benchmark. Benchmarks, like the Dow Jones Industrial Average or S&P 500, are indexes or averages that track a certain part of the market and provide a standard for measuring investment performance.
Read also
As of 30 June 2023, State Street has $39.6trn in assets under custody and/or administration and $3.8trn in assets under management. The company is active in more than 100 geographic markets and employs approximately 43,000 people, including around 1,000 in Luxembourg. abrdn, which, as of 28 February 2023, has £500bn in assets under management and administration (AUMA), also has an office in Luxembourg.