JPMorgan has been selected by the London Pensions Fund Authority, the city’s largest local government pension scheme, to provide portfolio administration and performance reporting for its
JPMorgan has been selected by the London Pensions Fund Authority, the city’s largest local government pension scheme, to provide portfolio administration and performance reporting for its alternative investment portfolio.
The mandate represents JPMorgan’s first alternative investment portfolio administration outsourcing agreement in the UK and complements JPMorgan’s existing European private equity client base.
JPMorgan Private Equity Fund Services will provide the LPFA with greater insight into the performance, concentration and risk across the alternative investment portion of its assets through services including cash management, cash flow tracking, performance measurement and analytics as well as a reporting capability.
JPMorgan is the global custodian for the LPFA’s GBP3.6bn portfolio and also provides the organisation with accounting, performance measurement, class actions and securities lending services. JPMorgan has provided custody services for the LPFA since 1991.
‘JPMorgan has been our longstanding trusted provider of custody and related securities services, and we are pleased to extend our relationship with them to include private equity fund services,’ says LPFA investment director Vanessa James.
Philip Jones, the authority’s investment manager, says: ‘We are confident that this arrangement will prove highly beneficial. The LPFA has a considerable and growing exposure to alternative assets, and we were rapidly reaching the point where the increased requirements relating to disclosure, transparency and the calculation of underlying performance required either a considerable increase in internal costs and resources, or for us to consider a more cost-effective solution. By teaming up with JPMorgan, we have achieved this comprehensively, efficiently and relatively quickly.’
Huw Jones, regional head of JPMorgan Private Equity Fund Services for Europe, the Middle East and Africa, adds: ‘Our experienced team will serve as an independent source of finance and performance analytics information, so the authority can focus its internal resources on maximizing investment returns.’
The Private Equity Fund Services business provides outsourcing of middle- and back-office fund administration services for more than 200 private equity funds representing more than USD45bn in committed capital, and also serves institutional investors in alternative assets with more than USD100bn in aggregate committed capital.
The business has more than 150 professionals at offices in London, New York, Chicago, Dallas, San Francisco and Sydney. JPMorgan Private Equity Fund Services is part of JPMorgan Worldwide Securities Services, a division of JPMorgan Chase Bank with USD15.6trn in assets under custody. The group provides custody, fund accounting and administration and securities services to institutional investors, alternative asset managers and equity issuers.
