JP Morgan Securities Services has been mandated by the bank’s asset management, JP Morgan Asset Management (JPMAM), arm to manage its middle office processes.
It is another example of a major asset manager expanding the range of functions deemed suitable for outsourcing.
According to JPMAM, which has roughly $2.6 trillion in asset under management, the arrangement will give the asset manager “a new globally consistent investment book of record” and a “scalable end-to-end operating platform”.
The first phase is planned for mid-2022 and will involve operational processing support for a range of derivatives. Subsequent phases involving other asset classes will begin in 2023.
“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,” said Andrew Powell, chief administrative officer and global head of client service, JPMAM.
“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,” added Scott Bevier, global head of investment operations services, JP Morgan.