MutualFundWire.com: A $4B-AUM ETF Shop Starts a Corp Credit Series

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Wednesday, January 17, 2024

A $4B-AUM ETF Shop Starts a Corp Credit Series

The team at a DMV multi-boutique is rolling out the first three ETFs in a new, passively managed series. Watch for them to expand that series to 10 funds down the line.

Alexander Robert "Alex" Morris
F/m Investments
President, Chief Investment Officer

This morning, Alex Morris, president and chief investment officer of F/m Investments, LLC [profile], unveiled the launch of the Washington, D.C.-based firm's US Credit Series. The first three funds in that series are the F/m 2-Year Investment Grade Corporate Bond ETF (ZTWO on the NYSE Arca), the F/m 3-Year Investment Grade Corporate Bond ETF (ZTRE), and the F/m 10-Year Investment Grade Corporate Bond ETF (ZTEN). All three are series of the RBB Fund, Inc., and their inception date was January 10.

The prospectus for the new ETFs indicates that the F/m team is prepping at least seven more US Credit Series ETFs: the F/m 6-Month Investment Grade Corporate Bond ETF, the F/m 9-18 Month Investment Grade Corporate Bond ETF, the F/m 5-Year Investment Grade Corporate Bond ETF, the F/m 7-Year Investment Grade Corporate Bond ETF, the F/m 20-Year Investment Grade Corporate Bond ETF, the F/m 30-Year Investment Grade Corporate Bond ETF, and the F/m 15+ Year Investment Grade Corporate Bond ETF. No tickers have yet been revealed for those seven planned funds.

F/m's North Slope Capital, LLC will serve as the new ETFs' investment advisor, and ICE Data Services will serve as the funds' index provider. The ETFs' PM team will include: John Han, senior portfolio manager at F/m's Oakhurst Capital Management, LLC; Justin Hennessy, senior PM at F/m's Genoa Asset Management, LLC; and Marcin Zdunek, director of trading and assistant PM at F/M.

"Traditional bond indices provide information about the broad market, but were never designed to optimize your investing experience," Morris states. "We are excited to continue to develop investors' abilities to take control of their fixed income exposure."

ZTWO is designed to track the ICE 2-Year US Target Maturity Corporate Index. ZTRE is designed to track the ICE 3-Year US Target Maturity Corporate Index. And ZTEN is designed to track the ICE 10-Year US Target Maturity Corporate Index.

The new series' other service providers include: Cohen & Company, Ltd. as independent accounting firm; Faegre Drinker Biddle & Reath LLP as counsel; Quasar Distributors, LLC as distributor and underwriter; U.S. Bancorp Fund Services, LLC (dba U.S. Bank Global Fund Services) as administrator, dividend disbursing agent, and transfer agent; and U.S. Bank, N.A. as custodian and securities lending agent.

The debut of the first F/m US Credit Series ETFs comes about 17 months after F/m first entered the ETF space. F/m now offers 14 ETFs in total with $4.132 billion in combined AUM as of yesterday.

Printed from: MFWire.com/story.asp?s=66934

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