JPMorgan Investor Services has launched a comprehensive servicing solution for investment managers and sponsors seeking to outsource their managed account administration, through a strategic alliance with Vestmark.
The service includes account opening and closing, ongoing account maintenance, performance reporting, and account reconciliation.
Managed accounts are one of the fastest growing segments of the investment management industry, especially in the US, where they have tax advantages. According to estimates by the Money Management Institute, a trade group for private asset managers, separately managed 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 aims to automate many of the labor-intensive processes associated with managed account administration by integrating Vestmark’s technology with JPMIS’s servicing platform.
“Investment managers are turning to global providers like JPMorgan for solutions that can help them increase their competitive advantage. 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. 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,” says Steven A. Smith, Western Hemisphere Financial Institutions Sales Executive at JPMorgan Investor Services.
David Blundin, chief executive officer of Vestmark, promised an “industry-leading technology coupled with an innovative servicing platform to address the needs of investment managers and increase the overall profitability of their managed accounts business.”