JP Morgan has been selected by investment management firm Palmer Square Capital Management, a manager of hedge fund-of-funds partnerships and customised alternative investments, to provide Prime Custody Solutions for the recently launched Palmer Square Absolute Return Fund, the firm's first open-ended mutual fund.
According to Palmer Square, the fund seeks capital appreciation with an emphasis on absolute (positive) returns and low correlation to the broader equity and bond markets. It utilises a concentrated group of seven institutional managers who operate a broad range of hedge fund-type strategies, including global macro, long/short and event-driven credit, long/short international and domestic equity, and convertible bond arbitrage. JP Morgan will provide a range of capabilities: global custody, equity and FX prime brokerage, interest rate derivatives, OTC, and futures and options.
Prime Custody Solutions combines prime brokerage, global custody and other securities services through a single technology portal and integrated client service model. The JP Morgan Prime Custody Solutions platform leverages two market-leading JP Morgan franchises: JP Morgan Worldwide Securities Services, a premier securities servicing provider with approximately USD17 trillion of assets under custody and JP Morgan Prime Brokerage, a market-leading global prime brokerage. Prime Custody Solutions provides tools to help mutual funds comply with the ’40 Act and SEC requirements regarding bank custody and shorting and/or leveraging alternatives strategies provided by a broker dealer. JP Morgan’s offering includes automated collateral management, consolidated transaction and reporting technology utilising a single portal and integrated customer service across all products.
Angie K Long (pictured), Chief Investment Officer of Palmer Square Capital Management LLC, says: “The ability to partner with JP Morgan across the breadth of the Palmer Square Absolute Return Fund trading and custody needs regardless of investment strategy and regulatory requirements is a huge benefit to us – both from an ease of execution and operations perspective. JP Morgan was able to structure a solution across the firm in a seamless way that enabled our fund to get to market quickly.”
Devon George-Eghdami, Managing Director and Head of Prime Custody Solutions, says: “We are seeing ever increasing demand from hedge fund managers who are offering alternative strategy mutual funds. Our ability to offer integrated capabilities across prime services, global custody and other securities services to these complex fund structures that must also meet ‘40 Act requirements is unique in the market. We are excited to be able to work with Palmer Square as they launch this new fund.”