Magazine article American Banker

JPM Fund Servicer to Seek Scale under New Chief

Magazine article American Banker

JPM Fund Servicer to Seek Scale under New Chief

Article excerpt

JPMorgan Chase & Co.'s U.S. fund servicing arm says it plans to add scale and services in an effort to build its assets under custody.

JPMorgan Worldwide Securities Services, which provides custody, accounting, investment operations, and administrative services for U.S. mutual fund companies, plans to broaden and deepen its service menu in order to add to its $11.5 trillion of assets under custody.

Mark Kelley, who the company announced Thursday had been hired to lead and expand the division, said it would announce in coming months that it has added a couple of "key" U.S. mutual fund complexes as customers.

"This business is about scale," he said. "You have to have the scale in order to compete. You have to have the scale to build the right technology to create an efficient processing platform."

The division has increased its assets under custody by 4.3% since mid-October last year. The custody total does not reflect the $700 billion of business added in July when it was chosen by Freddie Mac to supply transaction processing and record keeping services for its portfolio of mortgage-backed securities and short-term assets.

JPMorgan plans to add customers and offer more services to existing customers, Mr. Kelley said.

"In terms of our custody business, we have done quite well, in terms of growth," he said. "But as for our service offerings, including fund accounting, fund administration, and other middle-office services, we want to get that growth moving a little faster. …

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