JP Morgan picks up collateral management mandates
Concerns about counterparty credit risk have prompted AustralianSuper to appoint JP Morgan to provide end-to-end third party derivatives collateral management.
JP Morgan has also won mandates to provide collateral management services to three New Zealand superannuation funds:
- New Zealand Superannuation Fund
- Government Superannuation Fund Authority; and
- National Provident Fund.
Recent volatility and counterparty defaults have driven home the need for "appropriate collateralisation of counterparty exposures for superannuation funds and asset managers", according to JP Morgan Asia Pacific head of collateral management Blair Harrison.
JP Morgan has also announced a $30 million investment in technology solutions for institutional investors in Australia, with the staged roll-out of the Global Funds Servicing Platform.
Recent enhancements that have gone live globally include: a performance engine that includes mobile iPad reporting; investment analytics and a portfolio risk system; over-the-counter derivatives risk processing; a reconciliations platform; and an application for automated processing of managed funds transactions.
JP Morgan Worldwide Securities Services chief executive Mark Kelley said JP Morgan recognised the importance of the "dynamic and fast growing" Australian market.
"Australian clients are sophisticated and they want an increasingly broad array of services from across the bank - whether that be custody and securities services or access to global banking capabilities such as structured products, research capabilities or leveraging the intellectual property of our investment banking teams," said Kelley.
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