GLOBAL - HSBC Securities Services says it has "unseated" incumbent JP Morgan from a $40bn (€31.2bn) securities services brief at Royal London Asset Management.
It's the third multi-billion loss for JP Morgan to emerge in the past week, following announcements that Railpen and the Merchant Navy Officers Pension Fund had pulled assets from the firm.
"Following a successful tender from HSS, RLAM is scheduled to outsource the global custody, securities lending and investment administration activity for its combined $40bn in assets to HSS in phases from June 2006," HSBC said. Unit trust accounting would remain with JP Morgan.
HSBC said it "unseated incumbent custody provider JP Morgan Chase during a competitive tender process". The transaction involves a number of RLAM staff transferring to HSBC - although officials from both firms were not able to be more specific.
RLAM said several companies, including JP Morgan, had pitched for the business. JP Morgan declined to comment, although a spokeswoman had previously told IPE that it has won £30bn of UK pensions business in the last year and that it has seen a "very strong growth in our franchise".
"The technological fit played a large part in our decision to outsource to HSBC but it was the cultural fit that sealed the deal," said RLAM operations head Richard James.
"The fact that we managed to move from heads of agreement to contract signing within three months, whilst maintaining a business as usual approach to work load, proves this - quite an achievement."
"This mandate is testament to the strength of our relationship with RLAM and we are delighted to welcome all of the high quality, professional staff who will be joining us," said Mike Martin, head of HSBC Securities Services in Europe.
No comments yet