Download J.P. Morgan: Alternative Investment Services (AIS)

INVESTOR SERVICES
J.P. Morgan: Alternative Investment Services (AIS)
Market Update and Product Offerings – September 2013
At J.P. Morgan, we strive to provide our clients with industry-leading resources to stay ahead of market trends. As part of our
continuing effort to fortify our Alternative Investment Services (AIS) business and deliver the highest quality of service to
clients, we have heavily invested in these solutions with a series of strategic appointments that will deepen the knowledge and
expertise of the group. Overall, AIS has added six key hires in alternatives technology, operations and client services, from
firms such as BNY Mellon, Deutsche Bank, Citco Fund Services and Fortress Investment Group. Led by Stephanie Miller, global
head of AIS, these highly specialised finance professionals bring insight into alternatives operations, will continue to add to our
growth agenda and will help drive the strategic direction of AIS as our alternatives services business continues to expand.
Patrick Dennis
Dana Niblack
Hans DeWitte
Patrick Dennis, formerly the CFO of Fortress’
liquid markets group, joins the AIS fund
administration team, responsible for
operations service delivery for all hedge fund
administration and middle office clients across
the globe. Dennis was a former partner at
Ernst & Young and provides over two decades
of alternatives experience, previously a CFO
at multiple hedge funds, including Eton Park
Capital Management. Additionally, Dennis is a
Certified Public Accountant.
Prior to joining J.P. Morgan’s Alternatives
Investment Services group, Dana Niblack was
a Managing Director and the Head of Client
Services at Perella Weinberg Partners, a $10
billion alternative asset manager. Previously,
she was a Director of Investor Relations at
Citco Fund Services, responsible for the build
out of their New York and Toronto Investor
Relations teams. Niblack possesses over 20
years of alternatives industry experience and is
known for providing client and investor-centric
servicing. She will be responsible for Investor
Relations for AIS worldwide.
Hans DeWitte joins J.P. Morgan’s Alternative
Investment Services group as Managing
Director of Private Equity and Real Estate
Services. DeWitte spent six years with Deutsche
Bank managing global fund finance of RREEF
Alternatives and boasts proven leadership and
financial expertise with extensive experience
in all aspects of fund management, operations
& risk management and administration, with
a strong focus on the fiduciary aspect of the
funds management business.
Allen Cohen
Lisa Ehrlich
Stacy Collymore
After 13 years at BNY Mellon, most recently
as Chief Information Officer for BNY Mellon
Asset Management & International Technology,
Allen Cohen joins AIS as the Global Head of
Technology. Cohen brings to this new role over
two decades of industry experience, focusing
on financial services technology. As Global
Head of Technology for alternatives, Cohen
will be responsible for overall technology
governance and oversight, risk management
and mitigation, production stability, and the
execution of strategic initiatives.
Lisa Ehrlich comes to J.P. Morgan with 20 years
experience across multiple disciplines within
the financial services industry. A Certified
Public Accountant who launched her career
at Deloitte & Touche in its financial services
audit sector, her other professional experience
includes investment accounting, valuation,
project management, business analysis, client
service and onboarding. Most recently Ehrlich
spent seven years at Citco Fund Services where
she was Director of Client Integration. She joins
J.P. Morgan as Executive Director and Head
of Alternative Investments Client Services for
North America.
Stacy Collymore hails from Citco Fund
Services where she recently served as Head of
Operations. Collymore possesses over a decade
of industry experience in alternatives services
and joins as Executive Director of Operations of
AIS. In this role, Collymore will be responsible
for middle office operations in the Americas,
including transaction processing, instrument
pricing, margin and collateral processing,
lifecycle event management, and cash and
position reconciliations.
Managing Director - Global Head of
Hedge Fund Operations
Managing Director - Global Head
of Technology
Managing Director - Global Head of
Investor Relations
Executive Director – Client Service
Managing Director – Private Equity
& Real Estate Services
Executive Director – Middle
Office Operations
General Trends in the Alternatives Industry
Private Equity Industry AuM Growth
Hedge Fund Industry AuM Growth
2.5
3.0
$ (in Trillions)
3.5
$ (in Trillions)
3.0
2.0
1.5
1.0
0.5
0.0
2.5
2.0
1.5
1.0
0.5
2008
2009
2010
2011
2012
Q2 2013
0.0
2007
2008
2009
Dry Powder
*Source: HFR Global Hedge Fund Industry Report (2012, Q1 2013)
2010
2011
Q2 2012
Year
Year
Unrealized Value
*Source: 2013 Preqin Global Private Equity Report
Intelligence Reports
• J.P. Morgan has prepared a Regulatory and Operational Intelligence report to keep our clients apprised of regulatory changes,
impact to them, and changes to J.P. Morgan’s operational model
• J.P. Morgan has also released an Alternatives Quarterly Briefing for Q1 2013 to help our clients stay ahead of market trends
Regulatory Agenda
AIFMD
• AIFMD is an EU directive that includes enhanced reporting requirements for AIFMD
registered managers
• As fund administrator, J.P. Morgan will provide enhanced data extracts or an end to end
solution to meet our clients regulatory requirements
Form PF
• Regulatory filing for all S.E.C. registered investment advisors that became effective at the
end of 2012
• As fund administrator, J.P. Morgan can pull relevant data into extracts to assist clients with their
Form PF reporting obligations
FATCA
• Designed to enhance tax filing and payment by U.S. persons with offshore investments
• J.P. Morgan will provide a comprehensive FATCA offering including enhanced investor
classification and documentation, reporting and withholding services
EMIR
• EU regulation on derivatives, central counterparties and trade repositories
• Derivatives submitted to a trade repository
• OTC derivatives which are subject to mandatory clearing obligation must be cleared via a CCP
• Risk management for non-CCP derivatives
AIS is continuously rolling out new product offerings to meet our clients’ evolving needs
• For more information on current or future product offerings, please contact your J.P. Morgan Representative
Regulatory Agenda
New Product
Description
Investor Transparency
• There is increased regulatory demand for hedge fund transparency as seen through
AIFMD and Form PF; investor demand for transparency has also increased
• J.P. Morgan has created a standardised report that provides transparency around the
calculation of the NAV
• J.P. Morgan can provide the transparency report directly to investors, upon client request
• Target date for offering is Q3 2013
Investor Dealing
via Email
• Allows investors to send deal instructions via e-mail, providing an additional channel
beyond post and fax
• Email dealing can be used for all investor transaction types and is available on a
client-by-client basis
• Target date for offering is currently Q3 2013
Price Verification
• Allows Fund Managers to price their portfolio using their own valuations
• After J.P. Morgan verifies the Fund Manager’s prices with independent third parties,
the agreed price can be used to value the position
• Target date for offering is Q3 2013
AIS is currently building a best-in-class client facing technology suite that will be completed over the
next 18 months
Instruction
Management
• Client Facing Transaction Capture Portal
Reconciliations
• Client Facing Reconciliation Portal
• Improved automation and transparency of all client initiated instructions
• Leverage on proven scalable technology e.g., ‘TLM’ for reconciliation
P&L Reporting
• Client Facing P&L Reporting Portal
• Flexible AIS data warehouse
• Improved test cycle times and time to market
• Drill down capability with transparency
Pricing
• Leverage other J.P. Morgan Pricing utilities
• Pricing of Alternative funds on T
• Flexible operating model for Independent Pricing or Price Verification model
Investor Reporting
• Electronic dealing capability
• Enabled for Regulatory requirements such as FATCA
Delivery Transformation
• Agile method
• Increased speed to market
• Focused on value to clients
AIS New Client Mandates
J.P. Morgan has been selected as strategic partner to support Man Group’s fund of hedge funds brand, FRM, the London-based
FoHF specialist purchased by Man in July 2012 and merged with the parent firm’s existing FoHF business. Overall, Man Group
will be moving the administration of its legacy multi-manager business from Citco to J.P. Morgan, the process due to complete
in Q1 2014. J.P. Morgan will provide service to the firm’s full $13.6B FofHF suite, combined under the FRM banner. J.P. Morgan’s
Alternative Investment Services (AIS) group will provide fund accounting, passive currency overlay, investor relations, custody and
administration to all funds of hedge funds managed by Man. As part of this mandate, Man has moved to an outsourced middle
office model, provided by AIS and including daily reporting supporting liquidity and cash management, oversight of administration
and custody services and master feeder trade planning. Assets under management for Man and FRM, including a structured
products investment for which J.P. Morgan will also act as administrator, totals approximately $20B. This reflects on J.P. Morgan’s
sustained commitment to AIS and to servicing the needs of hedge fund and FofHF clients.
The products and services featured above are offered by JPMorgan Chase Bank, N.A., a subsidiary of JPMorgan Chase & Co. JPMorgan Chase Bank, N.A. is authorised by the Office of
the Comptroller of the Currency in the jurisdiction of the U.S.A. Authorised by the Prudential Regulation Authority in the jurisdiction of the UK. Subject to regulation by the Financial
Conduct Authority and to limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available
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