A financial crisis provides an opportunity to show off your capabilities and JP Morgan provided excellent communication to clients on the big issues of 2011, such as the Egyptian crisis, the Arab Spring, the earthquake in Japan, the eurozone sovereign debt crisis and the US budget standoff. All of these events put significant, individual pressures on the management of business lines, and asset managers needed a custodian with a large network of experienced staff to provide in-depth support. On top of this, the role of the regulator placed added burdens on asset managers and banks. Despite all of the unusual disruption, JP Morgan’s assets under custody, including sub-custody, rose to $16.9 trillion globally, with more than half of that in the US. This growth was organic from existing clients expanding their activities and from new business, with new multi-billion-dollar mandates from a major US insurer and a US-based global asset manager, among others.
JP Morgan enhanced its online client reporting tools and its consultative services with fiduciaries, boards and trustees. Following challenges around tax reclaims on international securities and class action, the US-based global bank also provided strong document management and reporting around outstanding tax reclaims. It also oversaw the tax documentation life cycle. JP Morgan’s global funds-order routing and settlement service provided a managed order service from placement to settlement for mutual and hedge fund dealing and is integrated with its custody platform. The bank’s cash allocating and rebalancing solution (CARS) helps clients create and deliver innovative fund-of-fund structures to support funds. CARS can rebalance funds to target weight on an ad-hoc basis or by using cash inflows.
JP Morgan’s solid balance sheet is extremely important in an uncertain environment in which many governments are struggling to cope with encouraging growth while reducing their own annual state budgets. JP Morgan’s healthy capital ratio, a diversified business structure and innovative solutions are extremely important to global custody clients. It will be looking to capitalise on its position in 2012 – a year that most will be hoping is less eventful than the last.
“We are honoured to receive this award, which recognises our commitment to innovation and excellence. This was particularly evident last year when, amid national and international market challenges, we were able to introduce a key enhancements to our global custody clients,” said Mark Trivedi, Americas Custody Executive at JP Morgan.
(Pictured: Mark Trivedi, Americas Custody Executive, JP Morgan)