JPMorgan Investor Services (JPMIS) said today that will join forces with Vestmark to provide a more cost-effective outsourcing solution for managed accounts.
JPMIS said it will launch a new comprehensive servicing solution for investment managers and sponsors looking to outsource their managed account administration through a ‘strategic alliance’ with Vestmark.
The new service will include account opening and closing, ongoing account maintenance, performance reporting, and account reconciliation, the company said.
“Investment managers are turning to global providers like JPMorgan for solutions that can help them increase their competitive advantage,” said Steven A. Smith, Western Hemisphere Financial Institutions Sales Executive at JPMIS.
“Using JPMorgan’s managed-accounts service will allow our clients to reduce operating costs, manage risk and avoid making large investments in service delivery platforms,” Smith added. After freeing up staff and investment dollars, resources will be increasingly available to focus on key objectives, allowing investment managers to concentrate on generating revenues, he said.
Managed accounts are one of the fastest growing segments of the investment management industry because investors value the products’ transparency, customization, and tax efficiency, the company said.
According to estimates by the Money Management Institute, a trade group for private asset managers, separate-account assets should double in three years, triple in five years and hit $2 trillion by 2011.
To support the wealth management market, JPMorgan’s new servicing platform for separately managed accounts automates many of the labor-intensive processes associated with managed account administration.
By integrating Vestmark’s technology with JPMIS’ state-of-the-art servicing platform, clients will benefit from a flexible, web-based solution that helps save them time, money and resources.