Superannuation funds and asset managers want advice on derivatives, investments in Asia, mergers and regulatory changes and JPMorgan has four bankers servicing such needs, says Robert Bedwell, a managing director at JPMorgan.
Bedwell says his colleagues have been asked over the last 18 months about how changes in US law may affect their investments. JPMorgan clients are also asking advice on how to invest in Chinese property as well as the future of exchange traded funds in Australia.
“Clients are driving us to bring solutions, especially the larger funds” says Bedwell. “Asset managers are building new products.”
JPMorgan has about 100 asset management customers in Australia including AustralianSuper, First Super, Vanguard, Schroder and Challenger. It has about $400 billion in assets under custody and employs about 900 people in Sydney, Melbourne and Wellington in its securities services business in Australia and New Zealand.
Bryan Gray, a managing director in treasury and security services at JPMorgan, expects more fund mergers over the next 18 months, a potential lucrative area of business for the bank.
JPMorgan advised on the merger of superannuation funds AustralianSuper and Westscheme, both clients.
As with many aspects of the Federal Government, neeorcfment is very often more important than writing new legislation. As much as I’m for an overhaul in financial sector regulation, I’m also positive they will over reach because that’s the nature of government. I’m much more concerned about actually enforcing current laws. How much stuff did the SEC just simply not enforce over the last decade? Madoff being the most glaring example. Ratings agencies, banking regulators, etc. were not simply mistaken, they were either incompetent or willingly complicit in deception. Lots could be accomplished by NGO’s, independent ratings agencies and the Federal Government just doing their jobs.