JPM sees upside in blurring lines between QIS and SMAs
Hedge funds are combining their strategies with bank indexes to create new products
JP Morgan is looking to capitalise on a growing convergence between its proprietary index and separately managed account (SMA) businesses.
The US bank has $40 billion in client assets on its SMA platform, Nexus. Of this, $25 billion sits in Nexus Prime, where institutional investors can gain leveraged exposure to hedge fund strategies in synthetic format.
JP Morgan has also amassed $100 billion notional in its Strategic Index (SI) business, which spans quantitative investment strategies (QIS)
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