JP Morgan Investor Services has helped the Gothaer Insurance Group launch the first product-independent insurance company fund supermarket trading platform for mutual funds trading in Germany. The plan is that Gothaer’s distributors will now be able to market a comprehensive range of funds to their retail investment clients.
The new platform is being launched ceremoniously in Gttingen today. “Thereafter some 2,300 Gothaer agents and over 4,500 brokerages will be able to trade the shares of various renowned investment companies through a single customer custodian bank,” explains Bryan Hahn, CEO of Gothaer. “Gothaer is thus providing its agents with a consulting tool, which combines the flexible investment opportunities offered by companies such as ADIG, DWA, Pioneer and Fidelity. This tool also greatly simplifies processing and makes all information directly available. The application can be accessed offline as well and thereby be used during individual consulting sessions. Gothaer agents will be supported through a special qualification programme. The services of eight nationwide specialty teams can be accessed in support of the sales effort. All agents will be certified pursuant to 34c of the Commercial Code. Under the terms of the alliance agreement JPMorgan will perform the role of custodian bank, thereby fulfilling the requirements of the Securities Trading Code.”
JPMorgan is supporting the Gothaer platform in three ways. First, JPMorgan Fundshub is providing the technology, which has been adapted and expanded to meet the requirements of the German market. Secondly, J.P. Morgan AG, the regulated entity of the bank in Germany, will provide depositary banking services – thus complying with the German Safe Custody Act and regulations on securities trading. Thirdly, JPMorgan FundsHub will support JPMorgan in Frankfurt in the execution and settlement of subscriptions and redemptions.
“Germany is a key part of our European strategy and through this alliance with one of Germany’s most respected financial services companies, we are able to ‘deliver the firm’ and make available our broad range of dedicated distribution solutions to the German retail sector in Germany for the first time,” said Ramy Bourgi, Business Executive, JPMorgan Investor Services, Europe, Middle East & Africa EMEA. “Great strides have been made over the past decade in the world of European mutual funds. However, we are really just at the beginning; distribution is and will remain the top priority and challenge for at least the next decade.”
Mark Lund, CEO, JPMorgan FundsHub adds: “This alliance is further evidence in our continuing belief in the increasingly important role that the maturing funds supermarket trading platforms will play in Europe as open architecture becomes the norm.”
The Internet-based custodian management of Gothaer FondsStation aims, by offering extensive analysis and management features, to make it easier for distributors to advise customers. “In contrast to the current practice of using several custodian banks through various companies, comprehensive current market data and funds information will now be available from a single source,” explains Morgan. “This gives agents a convenient overview of the investments and current transactions.”