J.P. Morgan Asset Management Taps the firm's Corporate & Investment Bank for New Global Operations Model
J.P. Morgan Asset Management (JPMAM) has selected J.P. Morgan's Securities Services to implement a new global operations model, enhancing its Investment Middle Office Services. This multi-year initiative aims to streamline operations, add product capabilities, and support business growth. The first phase begins mid-2022 with operational processing for derivatives products, followed by further phases in 2023. With $2.6 trillion in assets under management, JPMAM seeks to improve operational efficiency and investment experiences in a competitive landscape.
- Implementation of a new global operations model to enhance efficiency.
- Multi-year initiative allows for scalability and additional product capabilities.
- First phase to begin in mid-2022, enhancing derivatives processing.
- Focus on operational efficiency aligns with market pressures for lower fees.
- None.
NEW YORK, Nov. 16, 2021 /PRNewswire/ -- J.P. Morgan Asset Management (JPMAM) announced that it has selected J.P. Morgan's Securities Services division, part of the Corporate & Investment Bank, as the provider to support a new global operations model using its Investment Middle Office Services capabilities. The outsourcing of these services will enable JPMAM to drive value for its clients through investment expertise, insights and performance results while leveraging the expertise and scalability of other parts of the firm. It will also ensure that JPMAM can leverage a service oriented, scalable, end-to-end operating platform to enable business growth.
"We reviewed a number of alternative strategic operating models and after extensive due diligence selected J.P. Morgan," said Fred Crosnier, Global Head of Operations, J.P. Morgan Asset Management. "A new globally consistent Investment Book of Record facilitates our investment decision making process and enables us to seamlessly add new product capabilities."
JPMAM is commencing a multi-year initiative to implement this model, which includes the provision of middle office services, collateral management and risk analytics. The diverse nature of the JPMAM business across different market sectors, investment products, asset classes, vehicles and jurisdictions requires a service provider with extensive scale and capabilities to meet those needs. These new services add to the custody and accounting services that J.P. Morgan already provides to JPMAM.
Scott Bevier, Global Head of Investment Operations Services, J.P. Morgan, says, "Clients are requiring ever-increasing support from their middle office provider, to both enable their expansion into more sophisticated investment strategies as well as deliver continuous operational scale and efficiency. As a leading custodian service provider affiliated with the number one markets franchise, we are uniquely positioned to provide solutions to enable our buy-side clients to leverage the full breadth and depth of our expertise, systems, and global scale & connectivity. We're excited to expand our long-standing partnership with JPMAM by delivering these next-generation capabilities."
The first phase is planned for mid-2022, when J.P. Morgan will provide operational processing support for a range of derivatives products. This change will enable JPMAM to efficiently implement the use of new and different products, thereby expanding its derivatives capabilities. Subsequent phases will commence in 2023, and will involve migration of the operational servicing of other asset classes.
"Working with a leading provider like Securities Services, who can deliver the scale and capabilities to support our investment activity from end-to-end, allows us to focus our resources on investing for our clients" said Andrew Powell, Chief Administrative Officer and Global Head of Client Service, J.P. Morgan Asset Management. "Continued downward pressure on fees and expenses means that asset managers need to deliver an exceptional investment experience while also creating efficiencies and economies of scale in middle or back office services."
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of
JPMorgan Chase & Co. serves millions of customers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. and its affiliates worldwide.
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SOURCE JPMorgan Chase
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