J.P. Morgan has been selected by investment management firm FFCM LLC to provide a suite of securities services, including fund administration, fund accounting and custody, along with prime custody services, for its newly launched family of equity exchange-traded funds, QuantShares.
The QuantShares ETFs will be market neutral, holding both long and short positions in about equal dollar amounts. They are among the first ETFs that will engage in shorting physical securities. FFCM LLC has also chosen J.P. Morgan Clearing Corporation as prime broker for four of its seven new funds.
We are pleased to be launching these funds that will leverage J.P. Morgans ETF servicing with its prime custody solutions, says Bill DeRoche, founding member of FFCM LLC, the Boston-based investment adviser to QuantShares. Our decision to partner with J.P. Morgan reflects our confidence in their ability to support us across this multi-faceted and diverse set of strategies.
Robert Caporale, head of new business development in the Americas for J.P. Morgan Worldwide Securities Services, adds: J.P. Morgan has a history of innovation in the ETF space. We look forward to delivering our market-leading offering of securities services solutions to FFCM for their newly launched ETFs.
The new QuantShares ETFs have been created to provide institutional and individual investors with access to several alternative innovative investment strategies, according to FFCM. Offering diversification and risk management, the funds are designed to produce returns with low correlations to the overall equity market. These returns are driven by exposure to factors such as beta, momentum, quality, value and market cap.
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