J.P. Morgan Asset Management (JPMAM) has selected J.P. Morgan’s Securities Services to support a new global operations model using its investment middle-office services.
The outsourcing of these services will enable JPMAM to drive value for its clients through investment knowledge, insights and performance results while leveraging other parts of the firm.
The initiative to implement this model includes the provision of middle office services, collateral management and risk analytics.
The first phase of implementation 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 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.
These new services add to the custody and accounting services that J.P. Morgan already provides to JPMAM.
Fred Crosnier, global head of operations at J.P. Morgan Asset Management, says: “We reviewed a number of alternative strategic operating models and after extensive due diligence selected J.P. Morgan. A new globally consistent investment book of record facilitates our investment decision making process and enables us to seamlessly add new product capabilities.”
Andrew Powell, chief administrative officer and global head of client service at J.P. Morgan Asset Management, comments: “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.
He adds: “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.”
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