BNY Mellon to expand ETF servicing for AdvisorShares
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BNY Mellon to expand ETF servicing for AdvisorShares 03 February 2012New York Reporter: Anna Reitman
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BNY Mellon has been selected to provide ETF fund services, custody, fund accounting and fund administration for AdvisorShares' new ETFs. The AdvisorShares Rockledge SectorSAM ETF seeks to generate stable and consistent annual returns under all market conditions by investing in both long and short positions in US sector ETFs that offer exposure to US large cap equities.
"We expanded our relationship with BNY Mellon because of its ability to provide comprehensive support for alternative ETFs," said Noah Hamman, founder and CEO of AdvisorShares. "This new fund requires BNY Mellon to support our ability to take both long and short positions."
Using proprietary analysis, fund managers will buy long the sector ETFs that Rockledge forecasts to outperform the S&P 500 Index while also selling short an equal dollar amount of sector ETFs that are expected to underperform the S&P 500. The fund expects to hold equal amounts long and short, creating a dollar neutral portfolio.
"We continue to see an increasing array of ETF strategies being developed by our clients, including actively managed funds such as those created by AdvisorShares," said Joseph Keenan, managing director and global head of ETF services at BNY Mellon Asset Servicing. "BNY Mellon remains committed to the ongoing enhancement of its industry-leading ETF technology platform to facilitate the rapid evolution of the ETF business."
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