A new solution from JPMorgan to reconcile SMAs

This week JPMorgan introduced its billing solution for Separately Managed Account (SMA) to provide asset managers with a technology to collect fees. According to Scot Knight, executive director and product manager of J.P. Morgan Managed Account Solutions, this product is ‘the latest in a long line of added-value services’ they offer to administer SMAs. The technology was developed by JPMorgan in association with Redi2 Technologies, a leading software provider that exclusively focuses on fee billing solutions for the global financial services industry, and Vestmark Inc., an enterprise software company.

The new module calculates all billable events that occur in the SMA process at each of a manager’s sponsor relationships, identifying all differences outside of a flexible tolerance range and outputting the appropriate details that can then be directed back to the sponsor for review and resolution. In addition, with the automated billing system asset managers can independently calculate their expected revenue from sponsors.

JPMorgan is a leading provider of outsourcing solutions for SMA managers and sponsors. The company offers an integrated suite of services designed to allow investment managers, sponsors and overlay managers to outsource their operational and administrative SMA infrastructure. The firm's full-service customized platform provides complete coverage including account workflow, reconciliation, trade support, billing and performance reporting.