JP Morgan Chase and Bank of New York (BNY) announced today how they intend to handle the JP Morgan Investment Management assets which JP Morgan placed with BNY before the merger with Chase. Unsurprisingly, the US assets are returning to JP Morgan Chase. Less predictably, BNY will retain the international assets – an indication, perhaps, that BNY has an outsourcing platform of the type which JP Morgan Investor Services is only now assembling to fulfil the Schroders contract.
Bank of New York currently provides investment accounting and middle-office services to JPIM. Under the modified agreement, JPMorgan Chase will assume responsibility for U.S.-based investment accounting services, while BNY will continue to service the London-based institutional investment management business of JPMorgan Chase. The final terms of the agreement will be determined at a later date.
Veronique Weill, head of technology and operations for JPMorgan Chase’s Investment Management and Private Banking businesses, said, “The Bank of New York has been a quality service partner to us over a number of years, and we look forward to continuing our relationship with them.”
Thomas J. Perna, senior executive vice president for The Bank of New York’s Financial Companies Services, said, “We are pleased that JPMorgan Chase has decided to continue having The Bank of New York support their global investment management business based in London. We look forward to continuing to work with them.”